Legal Question in Real Estate Law in Illinois
Management Charges
Commercial lease provides: ''Tenant shall pay, when due and payable all rents, insurance and utilities as provided in the lease, and ''all other expenses whatsoever, whether major or minor, ....'' After 3 years of renting LL is now demanding a management fee of 1200/month. This is a single building and one tenant. There are no common areas. I believe the LL is using the ''management'' charges just to up his net but the language of the lease appears to allow it. What are my chances of challenging this position?
2 Answers from Attorneys
Re: Management Charges
The language of your lease appears to allow it, but I'd have to view the lease and also research the cases to know for sure. Unfortunately, that's not the type of work I do, so perhaps calling your city or county bar association and asking for a lawyer referral would be a good place to start.
Re: Management Charges
Your chances of success depend on the lease itself. Most commercial leases allow reasonable management fees. However, if you are the only tenant in a single building with a triple net lease, and if there are no adjacent vacant spaces where other tenants could come in, often there is no management fee or, if there is one, it is minimal. $1200 a month sounds like a lot. I suggest you review your lease thoroughly prior to proceeding.