questions & answers

Question: My lease is coming up for renewal at a complex that recently changed ownership. My neighbor is currently reviewing the new lease and trying to decide to stay or leave. The lease has an addendum saying that Tenants will be chaged CAM fees for ALL common area maintenance and repairs and all expenses to operate the property. They will determine the amount of each tenant's share by dividing the entire cost of CAMs divided by the number of units leased (not the number of units within the complex). They will not provide an estimate to "not to exceed amount". Can they do this? Big repairs comin

Answer: A landlord generally may include within a new rental agreement any term or condition (including a new common area maintenance fee) that is not for some reason prohibited by Arizona law (A.R.S. 33-1314). There is no requirement that any fees that a tenant agrees to pay before entering into a lease must either be (or be capped at) a certain amount. As an example, under the Arizona Residential Landlord and Tenant Act (A.R.S. Title 33 Chapter 10), utility costs may be allocated to each tenant using any method -- including per tenant; proportionately by livable square footage; and per type of unit – “that fairly allocates the charges and that is described in the tenant’s rental agreement” (A.R.S. 33-1314.01(F)).