Legal Question in Landlord & Tenant Law in California

Paying property taxes in a Commercial lease

My brother leased some property in Sunnyvale California, it is a commerical lease. The landlord just left him a letter stating that he was responsible for his portion the property taxes. My brother asked the other tenants about it and they said they all pay the property taxes. If my brother and the others are paying the owners property taxes, who writes them off and is that legal? After all these tenants do not own the property and why should they be responsible for the taxes of the owner and do they have the right to see the amount of the taxes?


Asked on 7/13/05, 12:43 pm

2 Answers from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Paying property taxes in a Commercial lease

Chances are that the lease is what is known as a Triple-Net lease, which calls for the tenant to pay different expenses, including the property tax for his portion of the building.

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Answered on 7/13/05, 1:04 pm
Carl Starrett Law Offices of Carl H. Starrett II

Re: Paying property taxes in a Commercial lease

Commercial leases often have "triple net" clauses that require additional payments by the tenant beyond rent. This might include common things like a share of he area mainenance charges and property taxes. It is an issue that should be addressed in the lease, so an attorney would need to read the whole lease agreement to see if your brother is obligated to pay. It is legal if it is addressed in the lease. if the lease holds them responsible, then they would have a right to see the amount of the taxes. But it is public record anyway.

As for who gets the write off, you should direct that question to a CPA or other tax professional.

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Answered on 7/13/05, 1:05 pm


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