PSA: Don't skip the fine print on commercial lease renewals like I did

I signed a 5 year renewal on my shop space last spring and didn't notice a clause that let the landlord pass through 100% of building maintenance costs. Thought I was just paying my share of taxes and insurance like before. After a roof repair and HVAC replacement this winter, I got a bill for $4,700 I wasn't expecting at all. My old lease capped my share at $500 a year, but that expired when I signed the new one without reading carefully. Anyone else get burned by sneaky hidden costs in a lease renewal?

3 comments

3 Comments

harperg761mo ago

My third-party logistics landlord tried that on me too, I got my lawyer to add a hard cap of $1,000 per year on pass-throughs before I signed. Saved me almost $3k when they tried to bill for sidewalk repairs last fall.

grace_campbell1mo ago

Never saw the point of caps until I got hit with a $4k surprise bill. Changed my mind real fast.

nora1101mo ago

Same thing happened to me last year (a surprise $3.8k bill for a common area repair the landlord never mentioned). It's awful how one unexpected charge can throw off your whole budget. Those caps sound like a lifesaver.