Solomon Bruce Consulting Blog

Wednesday, September 19, 2012

Are the Utilities Included in the Lease?

              A business owner commented the other day that the reason he left his old location was because he was responsible to pay for the utilities.  His old location, in a building about 100 years old, had cracks in it, poor insulation and was a fiscal resource drain every month when the utility bill came due!  The business owner said that he liked his building, the location, in an older part of the city in which he was located, however, could not afford to heat the building in the winter nor air condition it in the summer!  After he moved, he insured that each of his succeeding building had utilities paid for by the landlord, not him.
                This is an interesting twist of events.  Who pays your utilities in your building?  If you rent, is this expense included in the rent?  Do you pay for it?  Is the building well constructed and not require constant and continual maintenance?  These are all questions that one must consider when renting a new facility.  Sadly, this business owner learned the hard way about costs associated with utilities.  One only has to be stuck in a 5-7 year lease and pay these costs every month before he/she realizes what a mistake they have made!
                Who pays your utilities?  If you don't know, or are unsure, now is the time to ask the question!  If you are paying and the building is never cool or warm enough, now is also the time to have a discussion with the landlord, perhaps suggesting that an adjustment, downward in the rent is in order.  Remember, who pays your utilities?  This is a key question to ask and to know!


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