Hi
I was hoping that someone would be able to assist me with this query re calculating increase in outgoings.
As part of our lease the tenant is to pay increase in outgoings. Specifically, Land Rates and Land Tax. We have subleased to a new tenant as of February 2010. The original lease began in 2008.
Our calculations of the increase in outgoings for this new tenant are as follows:
Increase in outgoings from 2008 to 2010 is $5555 and his share of this should be 5/12 of this amount - $2314.58.
The tenant is calculating it differently - The $5555 divided by 24 months then multiplied by the 5 month of his lease at the time - $1157.30.
Any advice on this would be much appreciated as you can see I don't have much experience with commercial leases.
Thanks in advance.
I was hoping that someone would be able to assist me with this query re calculating increase in outgoings.
As part of our lease the tenant is to pay increase in outgoings. Specifically, Land Rates and Land Tax. We have subleased to a new tenant as of February 2010. The original lease began in 2008.
Our calculations of the increase in outgoings for this new tenant are as follows:
Increase in outgoings from 2008 to 2010 is $5555 and his share of this should be 5/12 of this amount - $2314.58.
The tenant is calculating it differently - The $5555 divided by 24 months then multiplied by the 5 month of his lease at the time - $1157.30.
Any advice on this would be much appreciated as you can see I don't have much experience with commercial leases.
Thanks in advance.