Tax Recharge Provisions – The Devilish Details

Landlords and tenants beware! If you are a landlord and you do not pay enough attention to the tax recharge provisions in your leases, you can end up out of pocket tens or even hundreds of thousands of dollars on the annual tax recharge balance sheet. As we all know, if you do not have a contractual ability to collect, you still have to pay.

Yes, sadly, for all involved, property taxes will always be a part of our reality. Similarly, if the devilish little details are not adequately addressed, a tenant can be surprised by receiving a bill for taxes owing that it did not think it owed. A little attention to the devil in the details can alleviate some of the pain and aggravation of the whole tax recharge numbers game.