If there is no provision for adding a management fee during the term of the lease, is it legal to do so?

Have been a tenant for 8 years, center is self-managed. Starting year 3 of another 5 year term. This year a 'management fee' is listed in the reconciliation statement, and the entire past year of fee has been billed to us as a 'shortage' (plus $1/sf added to NNN rate). Without any justification or a specific provision in the lease, is this allowed?
In Leasing Property - Asked by Teresa W. - Aug 17, 2016
Report Abuse
Answer this Question


John S.
Aurora, IL

Ask an attorney. It depends on the provisions of your lease. If the lease has no provision for it, there is probably a good case to be made that there is no justification for adding the management fee.

Aug 17, 2016
Report Abuse
Javier D.
Scottsdale, AZ

Hi Teresa,
Each state has different rules and landlord tenant code. Tenant and the Landlord will have to perform according to the Lease agreement. In this situation will be better to discuss with you landlord the situation to seek understanding or consult a Real Estate Attorney.

Aug 23, 2016
Report Abuse
Chris R.
Denton, TX

Your lease agreement should define those expenses that are permitted to be passed on in whole or in part to the tenant (s). If management is permitted - yes. If it is not - likely not.

Aug 27, 2016
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question