Commercial Tenant on a NNN Lease

[Pao Prieto]

Hello Investors!

Here in CA when you buy a property, the property tax will be a % of the sales price. With this being said, If i were to buy a commercial property with a NNN leases, can I immediately increase the share of the property tax since it will significantly change due to a new sales price?

What would be the process in informing the tenant that his share of the property tax will increase?

Can this also apply to other types of commerical leases?

Thank you and have a wonderful day ahead!

[Nathan Gesner]

If the current tenant has a lease, the lease cannot be changed without all parties approving of the change.

Now, if the written lease says tenant is responsible for property taxes, but doesn't specify a specific dollar amount, then I would say the charge increase based on the actual number.

The same would be true of utilities. If the lease says Tenant pays $100 a month for utilities, then you can only charge them $100 a month. If it says tenant is responsible for all utility charges, then you charge them whatever the actual amount is. 

Make sense?