Expert: John Smiley - 5/2/2008

Question
Hello Jim,

I ahve been in business for 6 years.  My base rent is currently $3800 per month and I pay $600 per month for CAM. A new owner took over the property.  I am now be billed:
$3800 base rent
$547.06 CAM EST
$104.06  Insurance
$1,151.70 Realty Tax

So my rent is up monthly over $1000.  I am in a lease until June 2009.  The new owners never gave any kind of written notice about this increase.  I cant pay it as I am a seasonal business and have a very fixed budget.  So-obviously, was not planning on such an increase!!!  If I don't pay will I be evicted?  Do I have any rights especially since I still have a lease-which I don't see anything in that mentions these type increases in the event of a sale of property.  Thanks for any advice!!!! Chris

Answer
Hello Chris,

Your lease likely makes mention of the kinds of costs that will be charged as CAM, but not the amounts.  Neither will it likely place any limitations upon what increases are permitted.

It's possible that the old landlord was not charging as much as is permitted in your lease.

Without review of the lease and all of the pertinent documents, I really can't say whether the increase in the rent you are paying is or is not permissible.  My first guess is that the new landlord is simply maximizing the recovery that is permitted by the lease agreement, but there are unscrupulous landlords out there who stretch it beyond what is normal and reasonable.

If you have significant concerns, you may be well advised to consult with your lawyer on whether you are being treated in accordance with the lease agreement.

Hope this helps,
John Smiley