When it comes to Commercial Leases, in many instances more
than one Tenant will inhabit the Premises.
In such an instance, the Tenant will
obviously only be responsible for the payment of a portion of the Rates and
Taxes and, in the case that no sub-meters have been installed, a portion of the
Utilities.
These portions will be calculated based on the Tenant’s
Participation Quota, as stipulated in clause 1.19. One would therefore need to
multiply the total amount of Rates and Taxes (and Utilities, if applicable) by
the percentage stipulated in clause 1.19. This percentage is calculated by
dividing the area in square meters actually occupied by the Tenant by the total
area of the Immovable Property in question as a whole. It stands to reason that
a small business occupying ¼ of a building should not be liable for the same amount
as a large business occupying a full floor.
It is also important to note that,
in terms of clauses 10.5 and 11.4, the Landlord is obliged to present the
Tenant with an invoice in respect of Rates and Taxes and Utilities. Many
disputes arise where Landlords merely capture an amount on, for example, an
Excel Spreadsheet. This provision is therefore an important one for the
Landlord to take note of.