Hey CRE community,
I’m both a landlord and currently a tenant (chose to rent in a new market rather than buy), and I came across something in my lease that I haven’t seen before and wanted to get the community’s perspective.
My landlord itemizes HOA fees, sewer, and garbage separately on top of the base rent. So the lease shows:
- Base rent: $5,000
- HOA (75% proration): $200
- Sewer/garbage (TTSA/TSA): $100
- Total: $5,400/month
As a landlord myself, I’ve always just rolled these costs into the rent and quoted a single monthly figure. My thinking has been:
- Simpler for everyone
- Tenants budget for one number
- I can adjust for costs annually without explaining which specific line item changed
But now I’m curious - is itemizing like this becoming more common?
What are the pros/cons from a landlord perspective? Does it create issues when these costs increase and you need to pass them through? Do tenants push back on increases to specific line items?
Would love to hear from those of you who do this - what’s the rationale, and how do you handle it when those third-party costs go up?
Thanks in advance!