Header graphic for print
The Lay of the Land DEVELOPMENTS IN CANADIAN REAL PROPERTY LAW

Tag Archives: operating cost

Managing Management Fees

Posted in Commercial

Landlords hold their management fees dear, and need to ensure they are fully recoverable.  Offers to lease routinely provide that the tenant will pay a management fee equal to a fixed percentage (say 5%) of the “Basic Rent” payable by the tenant.  Despite this clear contractual arrangement, landlords occasionally (and inadvertently) shortchange themselves when preparing the final form of lease.

Consider an offer to lease for a multi-tenant building.  The offer says that the lease will be a “net” lease and that the tenant will pay its “Proportionate Share” of “Operating Costs”.  The offer also says that the tenant will … Continue Reading