Legal Question in Real Estate Law in New Jersey

In New Jersey, does a landlord have the right to increase CAM charges on a commerical lease at an unreasonable rate, like 30% annually for 4 consecutive years?


Asked on 7/10/10, 7:25 pm

2 Answers from Attorneys

John Corbett Corbett Law Firm LLC

The landlord's entire right to any increases due to common area maintenance (CAM) charges will be contained in the lease. In a well-drafted lease, the tenant is entitled to an accounting that shows everything that goes into the CAM charges and any increases to them. CAM charges are most often based on the actual costs and not on "reasonable" increases. The problem (for tenants) with some leases is that they provide that the CAM charges are to be divided among the "rented" units and not the "rentable" units. This has the effect of making the current tenants pay the CAM charges for vacant units and may be the source of your problem. In a market where there are an increasing number of vacancies, the tenants that remain can bear an unfair burden. The tenant has no control over the leasing of the vacant units and landlord's incentive to lower rent to increase occupancy are less if all the other tenants are paying for the common areas. Have your lawyer review your lease and get the accounting to which you are probably entited. This is a business matter and there is always room for negotiation. � See also: http://info.corbettlaw.net/lawguru.htm

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Answered on 7/11/10, 8:00 am
Robert Davies The Davies Law Firm, P.A.

The landlord can not just pick a number and make you pay it. I would have to look at the lease, and get more information, and then I could give you some guidance. If the landlord has overcharged you, you should be able to get your money back!

Give me a call, make an appointment to come see me, and I will go over this with you, and give you some advice.

Robert Davies, Esq. 201-820-3460

My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

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Answered on 7/12/10, 8:57 am


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