Expert: Phil Nicols - 10/4/2009

Question
My commercial lease expired on January 2009, and we did not renew our lease but stayed month-month until we find another property. The owner knew that we will pay the same amount, but we told him that with the economy we cannot afford the CAM charges. We did not pay for them and now we left and he is asking for the CAM charges. Am I obligated to pay him since we did not renew our agreement and since we are on month to month bases?
Thanx for your help.

Answer
YES!

Nobody is holding a gun to your head. You could have left but it was your decision to stay.

CAM (common area maintenance) is your share of the property's cost base. If you are there, you should be sharing in those costs. they commonly include, garbage removal, snow plowing and or removal, grass cutting, replacement of common area lighting, cleaning etc. anything that is commonly used by the property.

commonly grouped together with TMI (property taxes maintenance and insurance) which is your proportional share of that.

Just because you claim the "economy is bad" cannot absolve you from your obligations under your lease. Yes you are on month to month but the terms don't change unless it is in writing. You are deemed to have accepted the lease as is without committing  to a longer term.

I'm based in Ontario Canada. Of course US laws vary some what - from state to state as well, but I can't see any judge, anywhere, agreeing with you. Your lease expired. you had the opportunity to vacate but you chose not to.

sorry this is not the answer you want to hear.

ps if you decide to move, pay your arrears, give notice 30 days at least to your landlord and if you need help finding a property, let me know where you are located and I can refer you to a commercial real estate agent in your area. Generally this is a free service to you, unless you decide to pay the agent directly, which changes your agency relationship with the agent but they can explain that to you in more detail.

I can direct you to an agent on our worldwide commercial network - someone specializing your area and type of real estate.

best, Phil