Commercial leases can be complex, and these agreements account for many other items besides just the rent. In a commercial building, the tenants often share expenses for the common areas, such as landscaping, lobbies, and common restrooms. Terms are written into the lease agreement that specify each tenant’s portion of the common area expenses.
Having an attorney on your side who has your best interests in mind can help ensure that you only pay your fair portion of the common area expenses. A Houston contract formation and review attorney can ensure that lease agreements clearly define your CAM obligations and protect you from unnecessary expenses. Reach out to Porter Law Firm today at (713) 621-0700 to let us review your common area expenses.
Why Clients Choose Porter Law Firm
We know you have options when it comes to choosing an attorney. At the Porter Law Firm, our attorneys will give you the personalized service and attention that you deserve. Being a boutique firm allows us the flexibility and agility to customize our approach and put together a custom strategy for every client. Clients rely on Porter Law Firm because:
- We have been helping business and real estate clients in the Houston area since 2009
- Our attorneys spend time with each client and strive to become a strategic partner for the client and their business
- Many of our lawyers are investors and commercial property owners, and they offer advice that they would follow themselves
- We understand the business of real estate, and we know what to look for to minimize your risk and maximize your return
Give us a call today to schedule a consultation and let us show you how we can become a strategic partner for you and your business.
Reasons You Need a Common Area Expense Review Attorney
Texas law states that a landlord may not assess these charges “unless the amount of the charge or the method by which the charge is to be computed is stated in the lease.” Commercial lease agreements are sometimes complicated, and it can be difficult to understand all the details of these documents. As a business owner, you need to understand exactly what you will be required to pay each month, especially when it comes to common area expenses. Some ways a Houston common area expense review attorney can help you include:
- Reviewing the lease agreement to help you understand the total amount of your rent
- Assessing the square footage of the property to make sure you are only paying your share
- Negotiating on your behalf to lower your expenses
- Performing a review of your contractual obligations versus the actual expenses incurred by the landlord
Not only can your lawyer help negotiate better terms on your behalf, but they may be able to get you a partial refund of your common area expenses by performing a year-end review. If disputes arise, a Houston real estate litigation and dispute attorney can assist in resolving conflicts with landlords over CAM charges. Contact us today to learn how we can help.
What Are Common Area Expenses & How Do They Work?
Common area expenses are generally used for maintenance and upkeep of the common areas on the property. This may include utilities, landscaping, janitorial services, security, and more. Typically, each tenant shares these expenses based on their pro rata share of the total area of the building. Some common area expenses may be tax-deductible; you can review the IRS guidelines to understand which costs may qualify.
For instance, imagine that you rent 10,000 square feet of space in a 50,000-square-foot office building. This means that you occupy 20% of the total building, so you would be responsible for 20% of the common area expenses. If the landlord pays $10,000 per year in common area expenses, you would likely be required to pay $2,000 of these expenses.
In some cases, you may be able to negotiate a lower amount if you do not use all the services of the common areas. For example, if one tenant requires security in the common area, you may negotiate away that expense if you do not require or use the security services.
Contact a Houston Common Area Expense Review Lawyer Now
If you are entering into a commercial lease, make sure you fully understand all the terms – including the common area expenses. The trusted attorneys at Porter Law Firm can help you review these expenses to make sure your best interests are protected. Contact us today to schedule a consultation with one of our Houston common area expense review lawyers.