PDA

View Full Version : Florida: Strange clause in lease


questioner1234
Oct 10, 2008, 05:32 PM
I've been living in a rented place for over a year and I just was looking at my lease and I saw this clause which I never paid attention to before. What does this mean?

11. TAXES. The Tenant agrees to pay any sales or use taxes on the rent and/or on or as an incident to his occupancy of the leased premises. The Tenant agrees to pay a pro-rata and proportionate share of any increase in real estate taxes which are either due or paid during the term of this Lease.

I can't believe I didn't see this part when I signed the lease. Does this mean when I move out I could get a bill for the landlord's taxes?

Fr_Chuck
Oct 10, 2008, 05:38 PM
That appears to be what it says,
I would most certainly want the entire lease looked over.

rockinmommy
Oct 10, 2008, 05:52 PM
I would take the first part of that as just a butt-covering thing in case your county or state inacts some crazy tax on rent or something.

The second part does in deed mean, to me, that if the owner's property taxes are raised during your tenancy they can hold you responsible for at least part of it. Since they can't technically raise the rent they can get their money this way.

If it's been a year? Is your lease up? If you plan to renew, when it's time to sign the new one I'd tell him you're not comfortable with that line item. It can be deleted or revised if you both agree. Both of you need to initial any changes.

questioner1234
Oct 10, 2008, 06:03 PM
I would take the first part of that as just a butt-covering thing in case your county or state inacts some crazy tax on rent or something.

The second part does in deed mean, to me, that if the owner's property taxes are raised during your tenancy they can hold you responsible for at least part of it. Since they can't technically raise the rent they can get their money this way.

If it's been a year? Is your lease up? If you plan to renew, when it's time to sign the new one I'd tell him you're not comfortable with that line item. It can be deleted or revised if you both agree. Both of you need to initial any changes.

I can't believe I didn't see this. When I first signed the lease there was a clause about how you have to abide by the rules of the swimming pool and I said "what is this? There is no swimming pool" and he said "oh this is just a generic lease, that doesn't apply." The landlord has been very nice the year and a half I've been there, has always responded when a repair was needed (twice) and I've never had any problems with him. I find it hard to believe he has some maniacal plan to stick me with a bill when I leave! This is awful! I don't know what to do. If it's a generic lease maybe he doesn't even know its in there? If I was going to get a bill for the taxes wouldn't I have gotten it already since I've been there a year and a half? This has me sick with worry. The whole reason I looked at this lease again is because I was going to see if I could break it in case I wanted to move but now it looks like I have even bigger problems.

LisaB4657
Oct 10, 2008, 06:25 PM
I've been living in a rented place for over a year and I just was looking at my lease and I saw this clause which I never paid attention to before. What does this mean?

11. TAXES. The Tenant agrees to pay any sales or use taxes on the rent and/or on or as an incident to his occupancy of the leased premises. The Tenant agrees to pay a pro-rata and proportionate share of any increase in real estate taxes which are either due or paid during the term of this Lease.

I can't believe I didn't see this part when I signed the lease. Does this mean when I move out I could get a bill for the landlord's taxes??

Rockinmommy was correct about the first sentence of that clause. It means that the landlord can pass on any taxes that get enacted if the state suddenly decides to start charging a sales or use tax on the rents that the landlord receives. It's a standard clause in a commercial lease but I've never seen it in a residential lease.

The second sentence is more of a worry. It is a standard clause in a commercial office lease and I'm very surprised to see it in a residential lease. But it's very possible that it is unenforceable for 2 reasons:

(1) Depending on the laws in your location it may be considered illegal. For example I believe that there are laws in NJ that prevent a residential landlord from charging a tenant separately for increases in real estate taxes. The taxes must be incorporated in the monthly rent and the landlord can increase the rent each term to allow for increases in taxes but they can't be a separate charge.

(2) Whoever wrote that clause probably thought they were doing the landlord a favor but really screwed it up. If you're going to include a provision allowing the landlord to pass on increases to the tenant then you have to specify a base line time after which the increase would be effective and you have to define the formula for the pro rata share. Since those items are not set forth then I think you'd have a great argument in front of a judge as to why that provision should be unenforceable.

Just to be safe, if you decide that you want to renew this lease at the end of the term then I strongly recommend that you insist that they delete this entire clause.

questioner1234
Oct 10, 2008, 06:32 PM
I feel a little better after re-reading it because as far as the second clause is concerned, it says I am responsible for "a pro-rata and proportionate share of any increase in real estate taxes" and I looked at the county property appraiser site and his taxes have actually gone down because the value of the property has decreased. But this is a lesson I will NEVER EVER EVER sign something without going over it with a fine-tooth comb. But I was so excited to get a dream apartment that my common sense went out the window...