This office lease form is a supplement regarding the building operating expenses which are escalated to the tenant. This form lists items to be excluded from the calculation of building operating costs.
The Georgia Building Operating Cost Addendum refers to a legal document that outlines the specific details and conditions related to the operating costs of a building in the state of Georgia. It provides an additional agreement or addendum to an existing lease or rental agreement. The addendum serves as a means of clearly defining the calculation, distribution, and payment of various operating costs incurred by the landlord or property owner, which are then passed on to the tenants. These costs typically include property taxes, insurance, maintenance, repairs, utilities, management fees, and other related expenses. The purpose of the Georgia Building Operating Cost Addendum is to ensure transparency and fairness in determining the allocation of operating expenses among tenants, while also protecting the rights and interests of both the landlord and tenants. It establishes the method for calculating the tenants' proportionate share of operating costs, often based on the square footage or leased area occupied by each tenant. There are different types of Georgia Building Operating Cost Addendums, which are tailored to suit various types of commercial properties and agreements. Some common variations or types of addendums may include: 1. Full-Service Lease Addendum: This addendum covers all operating costs related to the building, typically referred to as "gross rent." The tenant pays a flat fee, and the landlord is responsible for managing and paying all operating expenses. 2. Modified Gross Lease Addendum: In this type of addendum, the tenant pays a base rent in addition to a portion of the operating expenses. Specific costs to be shared are outlined, while others may remain the responsibility of the landlord. 3. Triple Net Lease Addendum: This addendum stipulates that the tenant is responsible for paying the property taxes, insurance, and maintenance costs directly, in addition to the base rent. It shifts most, if not all, operating expenses onto the tenant. Other types of Georgia Building Operating Cost Addendums may exist, each catering to the unique needs and agreements of commercial property leasing in the state. It is essential for both landlords and tenants to carefully review and comprehend the addendum in order to accurately account for operating expenses and mitigate potential disputes or misunderstandings.
