Re: do you have a tax escalation clause in your lease?

Re: do you have a tax escalation clause in your lease? by dave on September 12, 2017 @14:37

escalations or pass throughs are typically more common in commercial leases that are longterm with options. I have used them as a belt and suspenders in my residental leases for taxes, insurance, HOA fees and special assessments. In NYC RE taxes often have a special additional 'ding' which comes out in November / December. Also insurance policy anniversary dates vary and HOA's often have their ''special assessments". If these are a couple of dollars (per month) I often just absorb them, If not I pass them through directly without markup. I'm open about the base's at start of tenancy and generally tenants understand and are Ok. I also don't get greedy at rental increase time. Some tax juristictions assess and bill in arrears and increases have to be explained and properly prorated as in arrears. Trying to collect from departed tenants is a ''good luck'',.....so I don't try.

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Re: do you have a tax escalation clause in your lease? by Anonymous on September 15, 2017 @16:25	[ Reply ]

Thanks... I just didn't know what they were and how they were put into a lease.

Re: do you have a tax escalation clause in your lease? - Landlord Forum thread 354212