Hi Guys, I need a little mentoring please..... I bought my first commercial property last year and the realtor helped me setup my property fees etc. Well, now it's 2019 and my insurance has gone up a little plus I anticipate my property taxes will too. On the insurance, it is only like $2/month so no big deal to eat that but on the property tax I estimate it could go up like 5-10% so that is $250-$500/yr.
Questions:
-Do I need to give my tenant a notice period before I increase the management fee? Obviously she has setup an auto-pay at her bank so changing amounts is a hassle for her.
-I think that I will get my 2019 property tax estimate in March or so, which of course I will protest...… still, it will go up from what the 2018 level was. Do I therefore just total the amount she will have paid to date in 2019 then divide the difference for the remainder of the year ensuring that at the end of 2019 I have the total amount needed?
If there is a trusted source on managing/rules around management fees for a Triple Net Commercial Lease then I would love to see that beyond what is in my lease document.
