header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather


 
Calendar
Today in
S.C.V. History
April 12
1738 - Fr. Francisco Garcés born in Spain; came through SCV in 1776, found Tataviam fighting with Coastal Chumash, observed Santa Clara River flowing by night and dry by day despite the season being spring [story]
Garces statue


Commentary by Carl J. Kanowsky, Esq.
| Saturday, Sep 28, 2019

Carl Kanowsky, Esq.

Taking up from my last column, I’m talking with Jim, the owner of the traffic school, “Fun While Drinking and Driving,” about the lease he’s thinking of signing for his new location.

We’ve already discussed 1) renewal periods – were there any, and at what rate; 2) forced relocation – landlord can move tenant to new location without tenant’s consent; 3) tenant improvement or “TI” work – was there any, how much, and amount of work necessary to get an occupancy permit; 4) when did he have to begin paying rent?; 5) exclusivity clause – how effective and extensive; and 6) personal guarantee.

Then we reached the topic of CAM charges.

CAM stands for Common Area Maintenance. What is “common area?” That is the area that is not part of a tenant’s premises and which is open to all tenants or visitors to the building or location.

For instance, in an office building, the hallway that leads to the various offices is considered common area. Or in a mall, the corridors you use to walk from store to store; or the restrooms that are not inside a specific store.

One organization defines “common areas” as areas and facilities that are for the general, nonexclusive use of the landlord, its tenants, and the invitees of either. Another typical common area is the parking lot.

Now that we know what we’re talking about, the tenant must realize that even though he or she won’t always (and perhaps may never) use these areas, the tenant is responsible for helping to pay for the maintenance, upkeep, repair and, in some instances, replacement of these common areas.

“OK,” Jim said, “That seems fair. What’s the big deal?”

“There are several big deals,” I responded, and I went on to describe a few of them.

For instance: determining how much of the CAM charges an individual tenant responsible for. Tenants commonly respond, “I should pay whatever portion of the overall project my store/shop/office is.” For example, if a tenant rents a 2,000-square-foot office in a 24,000-square-foot building, many tenants believe their portion of the CAM fees would be 1/12th, or about 8.4 percent.

But that’s not always the way it works. Some landlords won’t use a tenant’s percentage of the overall space but only the tenant’s percentage of the overall rented space. Applying that to the example above, if only 20,000 square feet have been rented, then the tenant’s share of the CAM raises to 10 percent.

And sometimes in malls or shopping centers, to entice some of the more prestigious anchor stores (e.g., Nordstrom’s, Macy’s, etc.), landlords will agree these tenants don’t have to pay as much in CAM charges as the rest of the tenants, who have to make up the difference.

So, it is important to know exactly what part of the overall CAM charges you’ll be paying. It’s also a good idea to get the right to audit those charges.

Two other quick points:

1) Make sure you understand what’s included in “CAM fees.” For example, are you going to pay the landlord an administrative fee to figure how much it gets to bill you? Or, put another way, are you helping to pay the salary of the person who’s going to be hounding you to pay your CAM fees?

2) When do you pay the CAM fees? Normally, it’s once a month. But remember, you’re paying for the month and year ahead. So, you’re paying an estimate as to what the annual CAM fees will be. Many landlords do a reconciliation after they’ve figured out exactly how much the fees actually were. This reconciliation can result in a significant reconciliation bill to the tenant, who often has not budgeted for this expense.

After all of this, Jim conceded that he was willing to pay to have the lease reviewed.

 

Carl Kanowsky of Kanowsky & Associates is an attorney in the Santa Clarita Valley. He may be reached by email at cjk@kanowskylaw.com. Nothing contained herein shall be or is intended to be construed as providing legal advice.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Opinion Section Policy
All opinions and ideas are welcome. Factually inaccurate, libelous, defamatory, profane or hateful statements are not. Your words must be your own. All commentary is subject to editing for legibility. There is no length limit, but the shorter, the better the odds of people reading it. "Local" SCV-related topics are preferred. Send commentary to: LETTERS (at) SCVNEWS.COM. Author's full name, community name, phone number and e-mail address are required. Phone numbers and e-mail addresses are not published except at author's request. Acknowledgment of submission does not guarantee publication.
Read More From...
RECENT COMMENTARY
Thursday, Apr 11, 2024
Have you ever wanted to journey to another country to experience an array of new and unique cultures and customs?
Tuesday, Apr 9, 2024
In bustling Santa Clarita, where many residents lead busy lives and often feel divided and disconnected, there is a growing need for spaces that bring people together, fostering community and hope.
Monday, Apr 8, 2024
Each spring the city of Santa Clarita proudly showcases its cowboy culture and pays homage to its rich Western heritage during the one-of-a-kind Santa Clarita Cowboy Festival.
Thursday, Apr 4, 2024
Springtime, with all its blossoms and lovely weather is a popular time to get married. If you are looking to say “I do” at this picturesque time of year, look no further than City Hall Ceremonies.
Wednesday, Apr 3, 2024
It is anticipated that the three bylaw changes proposed by the CIF Sports Medicine Advisory Committee will pass this coming Friday, April 5 at the State CIF Federated Council meeting.
Wednesday, Apr 3, 2024
Feel the breeze and take in the sweeping views at the City’s 38th park, Skyline Ranch Park, a paradise for outdoor enthusiasts of all ages.

Latest Additions to SCVNews.com
1738 - Fr. Francisco Garcés born in Spain; came through SCV in 1776, found Tataviam fighting with Coastal Chumash, observed Santa Clara River flowing by night and dry by day despite the season being spring [story]
Garces statue
Have you ever wanted to journey to another country to experience an array of new and unique cultures and customs?
Jason Gibbs | Explore the World at Celebrate!
With a birdie on the final hole, Jonathan Larson won the The Master's University Spring Invitational and lifted The Master's men's team to an 11-stroke victory at the Crystalaire Country Club in Llano, Calif. Tuesday.
Larson Lifts Mustangs to Victory at Spring Invitational
SACRAMENTO, Calif. (CN) — A bill that would allow California poll workers and voters to sue over election intimidation is advancing through the Legislature after a Wednesday vote.
Bill Allowing California Poll Workers to Sue Over Intimidation Advances
College of the Canyons moved its win streak to four games after taking down visiting Antelope Valley College by a 14-12 final score in a back-and-forth game at Mike Gillespie Field on Tuesday.
Cougars Survive Slugfest Against AVC 14-12
The Santa Clarita Valley Water Agency regular board meeting will be held Tuesday, April 16, at 6 p.m.
April 16: SCV Water Public Hearing on Mandatory Recycled Water Ordinance
The Santa Clarita Valley Water Agency’s Public Outreach and Legislation Committee is holding an in-person meeting Thursday, April 18, at 5:30 p.m.
April 18: SCV Water Public Outreach, Legislation Committee Meeting
Offering a look into Los Angeles through his eyes, photographer and director Estevan Oriol will talk about his journey as an artist and his photography during a visit next week to California State University, Northridge. 
Celebrated Photographer Estevan Oriol to Speak at CSUN
Join the Santa Clarita Valley Chamber of Commerce Wednesday, April 17, for an unforgettable evening of networking and fun at Sand Canyon Country Club, located in the picturesque foothills of the Angeles National Forest.
April 17: SCV Chamber After Hours Mixer
California State Sen. Scott Wilk, R-Santa Clarita, announced Thursday his bill to help reduce overcrowding at animal shelters across the state, by expanding access to low and no-cost spay/neuter services, was approved in the Senate Education Committee.
Wilk’s Animal Shelter Overcrowding Bill Clears First Hurdle
City of Santa Clarita residents are invited to register for the Neighborhood Cleanup taking place on Saturday, April 27, and join the City in removing litter from their local neighborhoods.
Pre-Register Now for 2024 Neighborhood Cleanup Day
College of the Canyons student-athletes Nicole Lerma (women's swim and dive) and Domenik Cervantes (baseball) have been named the COC Athletic Department's Women's and Men's Student-Athletes of the Week for the period running April 1-6.
COC Names Nicole Lerma, Domenik Cervantes Athletes of the Week
In celebration of Earth Day, Los Angeles County Beaches and Harbors is partnering with Heal the Bay to host Kids Beach Cleanup event at Dockweiler Beach on Saturday, April 13, from 9 a.m. to 12 p.m., rain or shine.  
April 13: L.A. County’s Kids Beach Cleanup
1987 - Ramona Chapel and Red Schoolhouse relocated to Santa Clarita History Center in Hart Park [story]
Red Schoolhouse
The city of Santa Clarita hosting several art exhibits, as well as seeking artists for an upcoming gallery.
Call for Art, Upcoming Arts Exhibitions
The Los Angeles County Department of Public Health cautions residents who are planning to visit the below Los Angeles County beaches to avoid swimming, surfing, and playing in ocean waters:
Ocean Water Warning for April 10
Circle K will offer 40 cents off per gallon of fuel between 4 and 7 p.m. local time Thursday, April 11 during Circle K Fuel Day Pop-Up and 50% off on car washes all day at over 200 participating Circle K locations including Los Angeles.
April 11: Spring into Savings with 40 Cents Off Gas at Circle K
This third study by SMU DataArts analyzing the demographic makeup of the arts and cultural workforce in L.A. County finds a significant shift toward greater racial and ethnic diversity since 2019, particularly at the leadership level.
County Releases Data on Arts and Culture Workforce
The William S. Hart Union High School District is proud to announce that Nicole Jolicoeur, Rio Norte Junior High School Special Education Teacher, has been selected as the 2024/25 Hart District Teacher of the Year.
Nicole Jolicoeur Selected As 2024/25 Hart District Teacher of the Year
The SCV Aerospace & Defense Forum is partnering with ITT Aerospace to hold a networking breakfast and site tour of their Valencia facility.
April 16: SCV Aerospace & Defense Forum to host ITT Aerospace Tour
The Santa Clarita Valley Economic Development Corporation has released their Q4 2023 Economic Snapshot. 
SCVEDC Releases Economic Snapshot for Q4 2023
The Golden Valley High School Performing Arts Department presents cult favorite Little Shop of Horrors, a musical about a flower shop in a rough and rundown neighborhood that is taken over by a flesh-eating plant from outer space.
April 17: Golden Valley Presents ‘Little Shop of Horrors’
The Los Angeles County Board of Supervisors unanimously approved a motion introduced by Supervisor Kathryn Barger and co-authored by Supervisor Hilda L. Solis to commemorate the 109th anniversary of the Armenian Genocide by proclaiming April 24, 2024 as Armenian Genocide Remembrance Day. 
April 24: Supes Proclaim Armenian Genocide Remembrance Day
1909 - Oil Pioneer Wallace L. Hardison killed in collision with train [story]
Wallace Hardison
SCVNews.com