What does this mean in my lease?

Question

I'm a student, about to sign a lease for june 1st of this coming year. What does it mean in my lease:

"LESSEE(S) shall be responsible for the payment of real estate taxes and other assessments levied against the demised premises"?

Does this mean that I have to pay the real estate taxes on the property I'll be leasing for the year? Won't that work out to thousands of dollars?

I'm going to ask my landlord this before I sign, but I wanted some outside advice too.

Thanks.

Answer 1

Renters on residental propertys never pay the landlord's property taxes! They pay it themselves; the own the property after all not you. Your landlord is trying to get someone else to cover their taxes. This sounds illegal to me.

Answer 2

While that's standard practice with commercial properties, it's extremely unusual in residential leasing. In fact, it's illegal in many states in the US. Some landlord will try to get around this restriction by including a clause in the lease providing for a proportional rent increase if property taxes rise. Some state allow it and some do not.

On the other hand, it's common practice in the UK for the tenants to pay "rates" which is actually an occupancy tax not an ad-valorem property tax as is common in the US.

Personally I'd pass on such a lease. You are correct, the taxes could run into thousands of dollars. Tell the landlord that you're willing to pay a fixed rate lease plus the usual utilities but he will have to cover the taxes out of the rent proceeds himself.

Answer 3

This is common in commercial rentals where the tenant pays a base rent plus all other expenses related to the property such as real estate taxes, condo fees, insurance etc. It is not accepted practice in residential leases.

Be very careful -- if in doubt have a real estate attorney look at the lease for you.

Answer 4

Do not sign that lease. Just like the first poster said, when in doubt contact a lawyer. You would have to pay property taxes and frankly, it's stupid for an apartment renter to pay taxes...... and very costly and in as I understand it, it is illegal in some states. You as an apartment renter should not have pay property tax. I would ask your landlord about that. Your landlord should be responsible for property taxes.

Answer 5

Do ask landlord about this before you sign! What's this term doing in a residential lease (assuming that's the sort of lease you want)? Sounds as if bldg manager mistakenly gave you a lease for some other kind of property.

Rule of thumb: NEVER SIGN ANYTHING you don't FULLY understand! If you don't want to speak to atty$$$, contact your local residential tenancy office like the ones mentioned here:
using http://bccondos.ca/forums/viewtopic.php?p=657#657.

Answer 6

That is exactly what it means. I would not agree to that if it were me. I would go to a realestate agent that does property management and get some more info on that one. Might even try to see a lawyer if there is a realestate lawyer that will give a free consult.

Answer 7

Ask the landlord what his intention is with inserting that clause.

If he says that it's for taxes, but they'll be only $200, then line out that clause and insert, "Taxes, not to exceed $200."

If he says he doesn't intend to enforce the taxes clause, then line it out all together.

Contracts are negotiable. If there are certain terms that you don't like, then negotiate. It can't hurt.

Answer 8

money you pay