ABA Family Legal Guide

Forming and Operating a Small Business

Starting a Business

Commercial Leases

Are there any additional expenses or hidden costs in addition to the rent?

Here comes the tricky part. The base rent is only part of what you have to pay the landlord. Be aware that there will be another clause to cover additional rent. This section is negotiable, and you should pay extra attention to every word. This clause can be a blank check for the landlord's benefit if you're not careful.

Have the landlord define, in great detail, "additional rent." Find out whether the base rent includes taxes, insurance on the building, and utilities, or whether these are part of the additional rent. The landlord may charge you for excess use under the additional rent clause, for such items as after-hours heating, ventilation, and air-conditioning (HVAC). The landlord might even charge you for improvements made to the building that may not benefit you. These items can quickly add up to several hundred dollars per month, especially if the building is large. Find out if the common area costs are shared among all the tenants in the building. In some cases, the landlord may try to collect the full cost from each tenant. Try to negotiate the right to challenge the landlord's calculation of additional rent and operating expenses (see the following sidebar), and try to add a provision requiring the landlord to submit details of its charges.