CHAPTER 29 Pros and Cons of Different Landlord/Tenant Arr enant Arrangements angements When you do get a tenant, there are a few different types of arrangements you can come to. Each of them has upsides and downsides for you and the tenant and differ in how they are structured and what fees are assessed. As the landlord, you always choose what lease and agreement are used. The tenant doesn’t get a say. When you search for properties, you will know what type of lease each has before contacting the landlord. The main types of leases are full-service leases, net leases, and modified-gross leases. If you are offering a short-term lease, you may want to offer the simplest version of a lease so the tenant can easily work out the complete cost of the duration of the term.
FULL SERVICE LEASE
This is the most common type of lease for office space. In this lease, the rent is all-inclusive. It can also be referred to as a gross lease. The tenant’s rent covers every operating expense for the building. The landlord is responsible for paying every expense for the property. These include janitorial services, utilities, any maintenance, property taxes, insurance, and anything else associated with the property. Most tenants prefer The landlord to be fully responsible for handling and maintaining the property. The base rent is usually higher in this situation, to help the 175
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