My landlord is fabricating NNN charges and calling it maintenance.
I rent a commercial space for my tattoo studio. Currently, the landlord bills the tenants every quarter for NNN charges. At first it was basic things- dumpster use, parking lot lighting, pest control. But now, he tacks on LANDSCAPING and just puts a large amount next to it. Nothing is itemized, and every quarter it increases. Despite having a new tenant in the building (who is his son, and I know he’s not charging him).  Also- the landlord owns a landscaping business on the property.   


My question is - can I dispute this? I’ve asked for an itemized invoice and he just says “I planted 30 new plants, I made new additions to the building“ (side note- additions, NOT repairs or maintenance). I have no paper trail, just his word, and a hefty ever increasing bill.   


My take, is that this guy is making cosmetic upgrades to the property (not repairs) and having us tenants pay for it. So is this normal/legal? What can I do about it, if anything? I‘m leaving in 2 months anyway, but I’m afraid to get kicked out before then if I don’t pay this.
[{"id": "ivjh0nm", "text": "Read your lease. If it is NNN you have to pay your portion. If landlord is jacking up the costs by way of some kind of kickbacks or paying himself for services at a high rate, you can certainly ask for further explanation of your bill.\n\nDoes the owner manage the property? There is certainly a kickback element that occurs with management companies. Would likely be hard to prove an actual fraud.", "replies": [{"id": "ivjhls4", "text": "Thankyou, yea he does manage the property.   \nAlso, I\u2019m not even in a lease anymore. This past year he\u2019s refused to sign one, so it\u2019s all been verbal. Guess I just pay it and move on.", "replies": [{"id": "ivji51b", "text": "If the general market where you are is weak with lots of vacancies, you can attempt to negotiate with him.", "replies": [], "depth": 3}, {"id": "ivjktmq", "text": "You are occupying this space without a lease and the landlord has been making improvements? I would look for another space before you find this building sold to new owners and you have to move out immediately without recourse.", "replies": [{"id": "ivjlota", "text": "Thanks- yea I\u2019m already moving out by the end of January. It\u2019s been 2 years and the landlord is having me move, so that he can turn it into a Botox studio. Which is a blessing in disguise, as it has been a sh\\*tshow. I\u2019m just nervous about these next few months. I have clients booked til January, and if I don\u2019t pay this bill- I\u2019m worried how it will effect my business in the mean time.", "replies": [{"id": "ivjt25f", "text": "Sounds easier than it is but I would consider writing down the plan to fulfill services.  Maybe you can rent a chair at another studio if you get kicked out. \n\nJust my 2 cents as a consumer.  We had a similar issue with a service provider (owner kicked out who we used) and they had an email blast etc already setup", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "ivjwiq8", "text": "You could also not pay it and move on", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivjhe5a", "text": "See if there is \u201cpro rata\u201d language in the lease that says he can only pass through your proportional share of the expenses. These are commonly called CAM or Common Area Maintenance and is not odd. However, CAM should be reconciled with invoices and such but if your lease doesn\u2019t say he has to prove it then you may be SOL. Just call it a learning lesson, wait 2 months and have an attorney negotiate your next lease.", "replies": [{"id": "ivjlzkt", "text": "Thankyou, I\u2019m not even in a lease. So I feel like I don\u2019t have much to stand on here. I was in a year to year with him, but last January he just never gave me anything to resign. So it\u2019s all been Verbal. It\u2019s definitely a learning lesson at best. My attorney agreed that the landlord is using the NNN to his advantage, but aside from asking for an itemized invoice (which I\u2019ll never get) I\u2019m not sure theres anything I can do.", "replies": [{"id": "ivl20kq", "text": "You can not pay him", "replies": [], "depth": 3}, {"id": "ivlikam", "text": "You need a new attorney. Or at least a sit down with your current landlord to put the agreement in writing. Make sure you have opex reconciliation at years end and the ability to review an itemized list of landlord expenses.\n\nAlso, if you signed a lease at some point that expired and have a verbal agreement for new terms, you should still have rights within your expired lease.\n\nRegardless, get a new attorney.", "replies": [], "depth": 3}, {"id": "ivm0v7t", "text": "You want the itemized list and the bills", "replies": [{"id": "ivo7nf2", "text": "Thankyou. When I asked for an itemized list, all I got was a long email about how he planted \u201c30 begonias, 40 mums, waters the plants, made \u2018improvements\u2019 and hasn\u2019t been charging me for pest control\u201c \n\nbut no actual #\u2019s or $ of what that is", "replies": [], "depth": 4}], "depth": 3}, {"id": "ivm6ak0", "text": "Do not ever do shit that isn\u2019t documented. Read your damn lease.\n\nI promise you, that lawyer is worth $8,000.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivjnete", "text": "Unfortunately, if you aren\u2019t in a lease of any kind you aren\u2019t really protected in a lot of ways, CAM specifics included. If you did have an actual lease before and you are now just on a month-to-month after it expired, the specifics of your initial lease document should still be in place.\n\nWithout knowing specifics of this situation, landscaping is always a part of Cam charges. That part sounds reasonable.", "replies": [], "depth": 1}, {"id": "ivjsu7l", "text": "Tattoo studios are low desirability tenants.  Just refuse to pay or demand a gross lease.  Who is going to replace you with?", "replies": [], "depth": 1}, {"id": "ivjvq8h", "text": "You should have yearly audit rights on operating expenses, but check your lease and ask an attorney", "replies": [], "depth": 1}, {"id": "ivk74fc", "text": "Seems like an odd situation with the idea of no official lease, but if this unofficial lease is triple net and that\u2019s what has been agreed to then all of these expenses are considered CAM and fall under your responsibility to pay your pro rata share", "replies": [], "depth": 1}, {"id": "ivkc9w2", "text": "Even though you have a verbal agreement, check the terms of your last written lease. IME the terms of that last lease would carry forward through any allowed holdover period (you staying beyond the original expiration date at the LL's discretion).  \n\nYou'll want to reread and fully grasp the entire section on your CAM or operating expenses. Common Area Maintenance is exactly what the name says and operating is usually broader to include expenses for managing the property (like salary, management office rental, and other administrative costs).  \n\nIf the lease is good there should be a lot of details about what can and can't be included, but I've seen a lot of leases that aren't detailed and those come down to common sense. Would most people agree landscaping is a common area maintenance expense? Yes.  \n\nAll expenses should be backed up by an actual invoice from the service provider. Even if you don't get these by default, you can request the supporting documents for each charge. There might even be a provision in the last written lease about auditing the LLs books to confirm your expenses (sometimes with a time limit). If the LL refuses to provide backup that's a red flag and you may want to get an attorney to make a demand for the proof (ongoing so you get invoices for all new expenses too).  \n\nIf the expenses have gone up overall, then I'd expect your share to go up too. Be on the lookout for capital expenses. Those are costs to improve or extend the life of the asset by more than a year. Putting in a generator is a capital expense because it'll last a long time, repairing the existing generator is CAM or operating. If the landscaping has gone up because the service contract went up or a new service like lot sweeping was added that's too bad, but you shouldn't be footing the bill for something like installing entirely new landscape architecture around the property.", "replies": [{"id": "ivlriby", "text": "So that\u2019s exactly what I believe is happening. He\u2019s made additions to the property (nothing that needed repair). Such as, a new rock wall along the building. Or planting 50 begonias.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivkn79m", "text": "I don't like owners that operate like this.\n\nIt seems like he wants you out. Start looking for a new space.\n\nWe're effectively in December and you're planning on leaving in January. \n\nHow much security is he holding? 2 months?", "replies": [{"id": "ivlr79m", "text": "Yea it\u2019s very uncomfortable. He has $1000 of my security, which I\u2019m not expecting to get back. Not because my unit is in any bad condition, but he\u2019s just shady. I\u2019m wondering if I could ask him to put my security towards the NNN. Which is $1700.   \nthankyou for your reply", "replies": [{"id": "ivlrczy", "text": "I think you missed my implication. \n\nHold back the rent for the last 2 months. Use your security.", "replies": [{"id": "ivlrttl", "text": "Oh I understand now!   \nMy concern is - could he change the locks and keep my belongings? There is no lien in the initial (outdated) lease.   \nOr could he take me to small claims court?", "replies": [{"id": "ivlrzj0", "text": "Legally? No.  That would be an illegal eviction. \n\nHe would need to get an eviction through the courts.", "replies": [{"id": "ivlv854", "text": "Interesting. I just assumed everything was in the landlords favor when it came to commercial renting. Thankyou for getting back to me", "replies": [], "depth": 6}, {"id": "ivmkur7", "text": "This depends on the jurisdiction. States like Texas and Arizona both allow lockouts when a tenant isn\u2019t paying. Please don\u2019t give legal advice if you don\u2019t know what you\u2019re talking about.", "replies": [{"id": "ivq3pxa", "text": "Both OH and KY do too", "replies": [], "depth": 7}], "depth": 6}, {"id": "ivq3krw", "text": "this is wrong.  Self help evictions *may* be completely legal in commercial.  Many states laws on this only apply to residential.  I say may because every state is different and from landlord side no one should lock out a tenant unless their attorney advises, but tenant side you should absolutely not conclude you need to be evicted through the court unless your attorney told you that because thats not true most places.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivlwmaw", "text": "Your lease should outline your audit rights too.  As a side note, landscaping is a very standard NNN charge, but if you have audit rights in the lease you can ask him to provide invoices and reconciliations for each charge.", "replies": [], "depth": 1}, {"id": "ivm0hfl", "text": "I\u2019m not allowed to plug my business here, but I am a CRE lease Auditor. \n\nThe National Average is $1.25 per square foot of over charges by the landlord, annualized over a 10 year lease and 1,000 square feet and that\u2019s over $12k.", "replies": [{"id": "ivm0s79", "text": "And of your leaving in 2 months , don\u2019t sweat it especially if you paid last already.  Not really enough time for eviction with the holiday. \n\nAnd if he takes you to court, just bring your requests for the documentation. They won\u2019t make you pay it if he can\u2019t prove it", "replies": [], "depth": 2}, {"id": "iw0x3ur", "text": "Wow, that\u2019s a lot! Can you cite a source for this, please? I am a landlord in the middle of a possible gross lease negotiation for a single tenant property \u2026 and this prospective tenant is telling me to compete with a multi tenant property where he can\u2019t give me an exact number on cam etc he\u2019ll be charged for.", "replies": [{"id": "iw1d6jc", "text": "I believe it came from the most recent Deloitte Financial Advisory Services LLP Lease Administration Benchmarking Survey.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iw1d28l", "text": "I believe it came from the most recent Deloitte Financial Advisory Services LLP Lease Administration Benchmarking Survey.", "replies": [], "depth": 1}]