Landlord refusing to supply NNN breakdown
Hello, I currently rent q small commercial office space. Coming up in year 2 of lease, owner has not and will not supply the NNN breakdown and he raised the NNN fees collected. I have requested the breakdown in writing numerous times and still nothing. To add insult, our location has been broken into 3 times and the owner is not providing the security for the complex that was in the lease as a NNN expense. What recourse do I have against the owner to terminate the lease if any? I am in CA if that helps
[{"id": "fiavru1", "text": "You should be talking to a lawyer not reddit \nI\u2019m a ca licensed real estate broker", "replies": [{"id": "fibm91u", "text": "So am I but not versed in commercial, just residential unfortunately, landlord is a total piece of work", "replies": [], "depth": 2}], "depth": 1}, {"id": "fiax1j2", "text": "Lawyer up baby", "replies": [{"id": "fibjey5", "text": "That\u2019s step 2. Step 1 is create a paper trail of your reasonable and repeated requests. Lap mentioning your next step will be to get a lawyer involved is often enough to spur action itself. But don\u2019t go into default, that may limit your options", "replies": [{"id": "fibmp7a", "text": "Thank you! That's what I've been doing since we moved in. I am a real estate broker but commercial real estate is such a different monster I wanted to see what my next course of action should be.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fiayrq5", "text": "You should have audit rights in your lease that allow you to see those breakdowns.  Please review your lease.", "replies": [{"id": "fibmqo1", "text": "It's does, but he will not provide", "replies": [{"id": "fibmv4s", "text": "Lawyer up", "replies": [], "depth": 3}, {"id": "fiboxxo", "text": "Send him a certified demand letter. wait 30 days.  sue or give to attorney to sue.", "replies": [{"id": "fibsy3t", "text": "Thank you!", "replies": [], "depth": 4}], "depth": 3}, {"id": "ficbpk8", "text": "I work for a REIT.  Tenants refuse to pay the CAM all the time when they dispute it....:I\u2019m not advising that though (wink wink)", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fiaytev", "text": "What does your lease stipulate? If the provisions for NNN recovery/billing don\u2019t require documentation to support the landlords claims you may be stuck. Bad faith on their part at the very least but you may not win that fight until it\u2019s go to renegotiate your lease. \n\nThat said, tax and sewer use are public record. For other expenses, keep an eye out for the name(s) of service providers...the company who plows the lot, cuts the grass, etc.  Call them and pretend to be the owner looking to clarify a recent invoice, or confirm the outstanding balance or whatever. \n\nIf you can get a couple of data points you may be able to force the landlords hands somewhat on disclosure.", "replies": [{"id": "fibchgx", "text": "Even if op doesn't have an audit right, or if the window has passed, might op be able to request a \"cost verification review\" instead?  Landlords can't just make up expenses.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fib0ns9", "text": "unless your lease states otherwise the landlord doesn't owe you anything.  my advice like others is seek advice from a local real estate attorney that has experience dealing with commercial representation", "replies": [], "depth": 1}, {"id": "fibcyy6", "text": "Lawyer up. Your lease should have an are that deals with CAM Reconciliations (can go by many names, so don't just ctrl + f that). If it doesn't, you've got issues.", "replies": [{"id": "fibmj0v", "text": "It does, he has a legal obligation to supply but refuses unfortunately", "replies": [{"id": "firm29m", "text": "lease requires he does it - he is not, so he is in default of the lease. Look at the default section and see what it says for a landlord default (many don't have this section though so it might not be there). \n\nIf there is a section, it should detail a time frame to cure after notice - send the formal notice (follow the notice language in the lease) and wait the time frame. If he does not provide within the time frame, take him to court (or use other available remedies).\n\nIf there is no landlord default section in the lease, check local law. It's been a while since I researched California, but I seem to recall there being some decent statutes protecting tenants. You may need to hire a lawyer though (check the lease - many times the \"loser\" has to pay for this), but a Google search can point you in the right direction for notice and cure periods - follow those like I detailed above and then proceed to remedies (again, a lawyer would be best and the lease or law may require the party who loses to pay for it)", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ficjv88", "text": "Are they not providing the 2020 estimates or are they refusing to provide the 2019 reconciliation? You also didn\u2019t say how big the increase is. \n\nIf it\u2019s the estimates, you aren\u2019t entitled to a breakdown unless your lease calls for it. If there is a large increase (more than 3%) then they should explain what\u2019s driving it - in high level and somewhat vague terms (e.g. \u201canticipated tax increase,\u201d or \u201cadditional parking repairs\u201d), but they really aren\u2019t obligated to provide anything. I\u2019m not saying that this is what you\u2019ll do, but typically what happens is that when a PM gives a lot of detail on estimates to tenants, they try to start negotiating the budget with you. \n\nIf it\u2019s the 2019 reconciliation, see when your lease says they are required to provide it - 90 days (end of March) is pretty typical. Even then, they I would expect that they will only provide major account break downs - R&amp;M, cleaning, utilities, admin, etc. with a brief explanation of any variances rather than a break down by GL. They\u2019ll probably be willing to provide the tax and insurance bills if you ask. If you want to get more info you\u2019ll probably have to exercise your right to audit - if you have one.  Again, the more detail they give the more likely they have to deal with a bunch of tenants trying to argue about specific line items.\n\nEdit: regarding security - what exactly does the lease require and what are they providing? They may be providing security, such as occasional patrols, that comply with the lease and are considered reasonable, but you can still be burglarized. If you\u2019ve been broken into 3 times have you added a security system?", "replies": [{"id": "fics7ze", "text": "PM and owner has never provided our NNN fee breakdown since we signed the lease, still waiting on 2018 and now 2019. I have read the lease and they had 90 days to provide and upon NNN increase I can request an audit. It is a small 1200 sqft office space. Since we moved in the porter service has been discontinued, landscaping has been unkept, parking lot lights not working, and security has been non existent. We have had a security system since day 2, I also had giant LED security lights installed out front, and security cameras inside and outside with motion detection. I addressed the issue with security when we were initially broken into because we never saw security onsite or caught them on the cameras. There is a huge homeless and drug problem directly behind our unit since that is where the dumpster is. During the day there are prostitutes in the parking lot with their clients. I know the owner has no control over this but he could help. I have asked to just get a letter of authorization from the PM or owner so I can have them removed from the property by the police but he refuses. We just had a guy try to attack us with a full size shovel. It's been bad. I recently received the security company information and was told in writing that they only patrol the Starbucks on the other side of the complex, specifically the employees at shift change and for only 20mins at 9pm and 4am and do not get paid to patrol our side of the complex.. The NNN increased 11.9% this year with no warning or explanation. We don't mind paying the NNN but I have issue with his flagrant disregard of the contract and overall condition of the complex is concerning. This is a newer complex 2005 built. I am running a real estate brokerage and the combination of the vandalism, homeless\\druggies condition and appearance has been hard to overcome with clients. It's beyond frustrating", "replies": [{"id": "fiexczr", "text": "You need to send a notice of default per the terms of your lease. Depending on local law you may be able to withhold rent payments. If you\u2019re a broker you should know a couple of real estate attorneys - call them Monday.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ficsat3", "text": "Thank you all so much for the help and guidance", "replies": [], "depth": 1}]