Commercial Real Estate Investment/braking a commercial lease

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Expert: - 9/24/2010


Question
QUESTION: i have a beauty salon in queens,ny i been in the same location for 6 years and last year signed a 10 year lease 2 month a ago the landlord send a bill of 14,000 for back late fees and water charges keep in mind he never charge me for water or put on the lease  what can i do

ANSWER: Ana:

The answer to your question depends upon how the terms of your previous lease and current lease address specific matters like back late fees and water charges, and if your local landlord/tenant laws limit what you are required to pay for significantly deferred charges for late fees and water charges.  

You should contact your local landlord/tenant court or civil court right away; depending upon your court system where you are located, and ask them if they have any legal staff that can help you with this situation.

Good luck.

-Jim

---------- FOLLOW-UP ----------

QUESTION: The late fees where in the least the first in 2005 then I renew it in 2009
in neither of them was a water bill put on and the late fees are from
2006 until today

Answer
Ana:

I would like to help you, however, there are a multitude of considerations and lease related documentation that need to be reviewed before anyone can responsibly advise you with your lease problem.

You must find either low cost legal assistance though the office of your local courts or identify "Pro Bono" legal services, or, try to get the help of a very competent commercial property manager or broker.

Good luck,

- Jim

Commercial Real Estate Investment

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Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.

Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.

Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".

Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.

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