The "Additional Rent" clause outlines any extra charges a tenant may be responsible for beyond their base rent, such as utilities, maintenance fees, or taxes. This clause ensures transparency and clarifies the tenant's total financial obligations under the lease agreement.
Prime Landlord for an additional charge in accordance with the Prime Lease and which work is expressly requested by Subtenant in writing, (iii) one hundred percent (100%) of Tenant’s Proportionate Share (as defined in the Prime Lease) of the increase in operating expenses over the operating expenses for the 2024 calendar year (“Operating Expenses”), (iv) one hundred percent (100%) of Tenant’s Proportionate Share of the increase in real estate taxes and assessments over the taxes and assessment for the 2024 tax fiscal year (“Taxes”), (v) the cost of electrical service consumed at the Demised Premises in accordance with Section 5(A) of the Primary Lease, and (vi) all amounts due and payable by Sublandlord under the Prime Lease due or attributable to the Subleased Premises or the actions or omissions of Subtenant or its agents, servants, employees, contractors, licensees or invitees (collectively, “Additional Rent”). Additional Rent shall be billed to Subtenant and shall be due and payable not later than three (3) days prior to the date that Sublandlord’s payments are due and payable to Prime Landlord under the Prime Lease unless as otherwise as expressly set forth herein. Notwithstanding the foregoing, Tenant’s Proportionate Share of Operating Expenses and Taxes shall be due in monthly installments payable at the same time as Base Rent. At all times during the Term, a copy of the Prime Landlord’s statement to Sublandlord shall be conclusive and binding on Subtenant of the amounts payable pursuant to the provisions of the Prime Lease for the purposes of this Paragraph.
All Base Rent and Additional Rent shall be due and payable without demand therefor unless otherwise designated by Sublandlord and without any deduction, offset, abatement, counterclaim or defense. The monthly installments of Base Rent and Additional Rent payable on account of any partial calendar month during the Term of this Sublease, if any, shall be prorated.
Additional Rent. Tenant shall also pay its pro rata share of real estate taxes and operating expenses for the Property as Additional Rent in accordance with the following provisions.
Rent Adjustment. If the Lease is canceled as provided in subsections 6.02(b), (c), or (d), then the Rent, Additional Rent, and other charges shall be payable up to the cancellation date, and shall account for any abatement. Landlord, considering any abatement, shall promptly refund to Tenant any prepaid or unaccrued Rent plus Security Deposit, if any, less any sum then owing by Tenant to Landlord.
ADDITIONAL RENT. Beginning on the Rent Commencement Date, Tenant shall pay its Percentage Share of Expenses of the Real Estate Taxes, Insurance and Operating Expenses for the Property and the Building and Tenant shall also pay Landlord for One Hundred percent of the Real Estate Taxes, Insurance and Operating Expenses for the Additional Property for Parking. All of the above expenses shall be defined as “Additional Rent” in this Lease. Landlord’s good faith estimate of the Additional Rent is Thirteen Thousand Six Hundred Twelve and 23/100 Dollars ($13,412.363) per month.
Additional Rent. In addition to the monthly payment of Base Rent, commencing on the Rent Commencement Date, Tenant shall pay to Landlord Additional Rent on a monthly basis as follows.
Audit. Tenant and its representatives may at any reasonable time within six (6) months after the date of receipt of any Additional Rent Statement, inspect and audit the books and records of Landlord respecting the Additional Rent Statement. Should an audit show that any Additional Rent Statement was inaccurate, the parties will make an adjustment to reflect the actual Tenant’s Share of Operating Expenses, Insurance and Taxes for the year in question. If an audit shows that Landlord has overstated Tenant’s Share of Operating Expenses and Taxes by more than five percent (5%) in the aggregate, then Landlord shall pay to Tenant the reasonable and actual out-of-pocket cost of the audit incurred by Landlord.
Additional Rent Based Upon Operating Expenses. In addition to Base Rent, Tenant shall pay Additional Rent (“Additional Rent”), starting on the Commencement Date, and on the first (1st) day of each month in advance thereafter, one-twelfth (1/12th) of the Operating Expenses (as hereinafter defined) for any calendar year in such amount as Landlord may reasonably estimate.
Additional Rent Based Upon Real Estate Taxes. As Additional Rent, starting on the Commencement Date, Tenant shall pay Landlord the annual real estate taxes and assessments assessed and levied against the Property (including reasonable attorneys’, accountants’ and consultants’ fees and costs incurred in connection with proceedings to contest, determine or reduce any real estate taxes or assessments), on the first (1st) day of each month, in advance, in a sum equal to 1/12th of the annual real estate taxes and assessments due and payable for the then calendar year. If at a time a payment is required the amount of the real estate taxes and assessments for the then calendar year shall not be known, Tenant shall pay Landlord, as Additional Rent, 1/12th of the real estate taxes and assessments for the preceding calendar year; and upon ascertaining the real estate taxes and assessments for the current calendar year, Tenant shall pay Landlord any difference upon demand, or if Tenant shall be entitled to a credit, Landlord shall credit the excess against the next monthly installment(s) of Additional Rent falling due. Additional Rent based upon real estate taxes and assessments payable for the first and last years of the Term shall be adjusted and prorated, so that Landlord shall be responsible for Landlord’s prorated share for the period prior to and subsequent to the Term and Tenant shall pay Landlord its prorated share for the Term.
Additional Rent Based Upon Other Sums. Tenant shall pay Landlord, as Additional Rent, all other sums of money on Tenant’s part to be paid pursuant to the terms, covenants and conditions of this Lease.
Additional Rent Based Upon Reimbursement to Landlord. If Tenant shall fail to comply with or to perform any of the terms, conditions and covenants of this Lease, Landlord may (but with no obligation to do so) carry out and perform such terms, conditions and covenants, at the expense of Tenant, which expense shall be payable by Tenant, as Additional Rent, upon the demand of Landlord, together with interest at the rate per annum of eight percent (8%) (the “Default Rate”), which interest shall accrue from the date of Landlord’s demand.
Additional Rent Based Upon Landlord’s Legal Expenses in Enforcing Lease. As Additional Rent, Tenant shall pay Landlord, all reasonable attorneys’ fees that may be incurred by Landlord in enforcing Tenant’s obligations under this Lease; provided, however, that in the event Landlord commences a suit against Tenant to enforce Tenant’s obligations under this Lease, and such suit is tried to conclusion and judgment is entered in favor of Tenant, then in that event Tenant shall not be under any obligation to pay Landlord the attorneys’ fees that Landlord may have incurred.
Additional Rent Based Upon Taxes Based on Rent. If at any time during the Term a tax or charge shall be imposed by the State of Colorado or the county or municipality in which the Premises is located, pursuant to any future law, which tax or charge shall be based upon the rent due or paid by Tenant to Landlord, then Tenant shall pay Landlord, as Additional Rent, such tax or charge. The foregoing shall not require payment by Tenant of any income taxes assessed against Landlord or of any capital levy, franchise, estate, succession, inheritance or transfer tax due from Landlord.
Additional Rent may include, but is not limited to any additional insurance premiums and/or expenses paid by Landlord which are chargeable to Tenant as stated hereinafter. Additional Rent is due and payable with the Monthly Rent for the next month after Tenant receives notice form Landlord that Additional Rent is due and payable.
Additional Rent shall be determined annually, LANDLORD shall, as soon as possible after the determination of the Additional Rent for any calendar year, but no later than September 30 of the following calendar year, furnish TENANT a statement in writing setting forth the amount of Additional Rent and the basis for the calculations thereof.
PAYMENT OF ADDITIONAL RENT.Within ten (10) days of TENANT's receipt of such statement, TENANT shall pay to LANDLORD (i) all Additional Rent for the previous calendar year not theretofore paid and (ii) the product of 1/12 of the Additional Rent for the previous calendar year and the number of lapsed months in the current calendar year less Additional Rent already paid during such months, for application on the Additional Rent payable with respect to the current calendar year. Until further notice of change in Additional Rent, there shall be due from TENANT on the twenty-fifth day of each calendar month an amount equal to one-twelfth (1/12) of the Additional Rent set forth in such notice, to be applied against the Additional Rent owed for the calendar year or years in which such payments are made.
“Additional Rent” means all amounts payable by the Tenant under this Lease except Base Rent, whether or not specifically designated as Additional Rent elsewhere in this Lease;
“Rent” means the total of Base Rent and Additional Rent.
“Additional Rent” shall mean all sums other than Base Rent payable by Subtenant to Sublandlord under this Sublease, and together with Base Rent, “Rent”. Additional Rent shall include, without limitation, any and all amounts payable by Sublandlord to Landlord under the Lease pursuant to the provisions thereof other than base rent owed by Sublandlord to Landlord thereunder; provided, however, that the Tax Base shall be adjusted to the Taxes for Tax Year 2022 and the Base Operating Expenses shall be adjusted to the Operating Expenses for Operating Year 2021 for purposes of determining Tenant’s share of Taxes and Operating Expenses.
Additional Rent. (a) In addition to the Fixed Rent hereunder, Subtenant covenants to pay as Additional Rent all monetary obligations of any kind Subtenant incurs directly with the Overlandlord under the Overlease, including, but not limited to, overtime charges for heating and air conditioning, window cleaning or other services, any similar or other obligations incurred from time to time by Subtenant, and any charges in connection with the installation and operation of Subtenant’s supplemental HVAC, if any. Subtenant acknowledges and agrees that the Fixed Rent set forth herein does not include Additional Rent, including the Operating Expense Charge, Subtenant’s Utility Cost Share of the cost of Utilities provided to the Sublease Premises, Electricity Charges, overtime charges for heating and air conditioning or for cleaning, janitorial, rubbish removal and other such services. With respect to such overtime or extra services, Sublandlord is not responsible for providing such services, and Subtenant shall be solely responsible for requesting such services directly from Overlandlord and for paying Overlandlord for the same, or for having Overlandlord approve independent contractors for same to be paid directly by Subtenant.
Additional rent refers to costs or expenses that a tenant is required to pay in addition to the base rent as stipulated in a lease agreement. These costs can include utilities, maintenance fees, property taxes, insurance, and other expenses related to the operation and upkeep of the property. The concept of additional rent ensures that the landlord can cover costs that fluctuate or change over the lease term.
You should consider using additional rent clauses in lease agreements when you anticipate that certain costs will extend beyond the fixed base rent. This approach is often used in both residential and commercial leases to account for variable expenses the landlord incurs on behalf of the property. If the property or its maintenance involves variable costs such as property taxes, insurance, or maintenance fees, then additional rent clauses can be beneficial to cover these expenses.
When drafting an additional rent clause, clarity and precision are essential. Clearly specify what constitutes additional rent and how each cost will be calculated and billed. Here is a simplified example of how an additional rent clause might be structured:
Additional Rent. In addition to the base rent, Tenant agrees to pay Landlord as additional rent: (i) all charges for utilities serving the premises, including water, gas, electricity, and sewage; (ii) a proportionate share of property taxes; (iii) a proportionate share of insurance premiums for the premises; and (iv) costs incurred for regular maintenance and repairs. These amounts shall be determined and payable monthly in conjunction with the base rent.
Additional rent clauses are commonly found in both residential and commercial lease agreements, particularly where there are likely to be variable costs associated with the upkeep and operation of the property. They are prevalent in:
Residential Leases: Especially in apartment complexes or multi-family dwellings where tenants might share costs such as heating or communal area maintenance.
Commercial Leases: Where businesses might share costs for common area maintenance (CAM), property taxes, insurance, and other operational expenses.
By incorporating additional rent clauses, landlords can ensure that unpredictable costs are shared equitably between themselves and the tenant, thus safeguarding their interests and maintaining the property’s financial viability.
Try our AI contract analysis and extract important clauses and information from existing contracts.
< <
Dive deeper into the world of clauses and learn more about these other clauses that are used in real contracts.
The "Agreement in Full Force and Effect" clause affirms that the contract is valid, enforceable, and remains active according to its terms. It ensures parties are aware that all provisions are operative and applicable unless otherwise modified or terminated by mutual consent.
An "Agreement in Principle" clause signifies a preliminary agreement between parties on the fundamental terms and conditions of a future contract, indicating mutual understanding but not yet legally binding. This clause outlines the basic framework and intentions, pending further detailed negotiations and formalization.
An "Agreement null and void" clause stipulates that the contract or certain provisions within it will have no legal effect if specific conditions or contingencies are not met. This clause serves to protect the parties by voiding the agreement entirely or partially if predetermined circumstances arise, ensuring neither party is bound under such situations.
Fill out the form and we will get in touch with you to give you a personal, customized demo of fynk.
Greetings!
I'm Markus, co-founder of fynk. After you've submitted the form, I'll swiftly get in touch with you.
Also, right after you submit your details, you can pick a time that works best for you for our meeting.
