Contributed By McGuireWoods LLP
The maintenance and repair of the common areas in multi-tenant properties are typically performed by the landlord. However, the costs of that work are usually passed along to the tenants as part of their additional rent obligations, where each tenant pays a proportionate share of these expenses based on its square footage. In some cases, a tenant may only be responsible for its share of the increase in these costs above the amount incurred by the landlord in a base year. However, tenants may negotiate detailed exclusions to the list of includable expenses, so that they are not required to reimburse the landlord for certain itemized costs.