Increase in Operating Costs Clause Samples

The "Increase in Operating Costs" clause allows for adjustments to payments or contract terms if the costs associated with operating under the agreement rise beyond a certain threshold. Typically, this clause outlines the types of costs covered—such as utilities, labor, or materials—and the process for notifying the other party and substantiating the increase. Its core function is to protect the party bearing operating expenses from unforeseen cost escalations, ensuring that the contract remains fair and financially viable even as market conditions change.
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Increase in Operating Costs. That Landlord may, upon mailing two (2) months prior written notice to the Tenant, increase the unpaid balance of the annual rent, and each unpaid monthly installment of said annual rent payable during the term hereof, or of any renewal or extension thereof, by Tenant’s proportionate share of any increase in the Operating Costs of the apartment complex in which the Premises are located (hereinafter referred to as the “Apartment Complex”). Said increase in the Operating Costs is the difference between the Landlord’s Operating Costs during its last fiscal year preceding the date of this Lease and the average monthly amount of such Operating Costs incurred by Landlord from the first month subsequent to the date of this Lease through the month immediately prior to the date of Landlord’s notice hereunder, multiplied times twelve (12). Tenant shall pay each month a sum equal to 1/12 of Tenant’s proportionate share of said increase. Tenant’s proportionate share of any such increase in the Operating Costs shall be determined on the basis which the area of the Premises bears to the total area of all apartments in the Apartment Complex provided, however, that in no event shall any increase in rent violate any applicable law or regulation. The Tenant shall pay Tenant’s proportionate share of such increase, together with the rent expressly specified in this Lease, or any renewal or extension thereof, on the effective date of the increase and, thereafter, on the first day and every month during the Lease term, and any renewal or extension thereof. The Operating Costs of the Apartment Complex are hereby defined as the total costs and expense incurred by Landlord in operating, repairing and maintaining the Apartment Complex including, without limitation, gardening and landscaping, water, sewage, lighting, sanitary control, removal of snow, trash, garbage, and other refuse, heating, cooling, electricity and other utilities, insurance applicable to the Apartment Complex, janitorial and cleaning service, real estate taxes, assessments, rates and charges imposed with respect to the Apartment Complex, replacing or repairing of pavement curbs, walkways, drainage and lighting facilities, the cost of personnel (including, without limitation, salaries, wages and so-called fringe benefits) to implement such services, depreciation of machinery and equipment used for such operations, charges under maintenance and service contracts relating to the Apartment Complex, and equipment ass...
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Increase in Operating Costs. Tenant shall pay to Landlord SEVEN AND ONE HALF percent (7.5%) (being the approximate and agreed upon proportion the floor area of the premises bears to the total rentable office floor area above grade of the Building) of the increase during the term of this Lease in Annual Operating Charges (as hereinafter defined) over the Base Operating Charges (as hereinafter defined). The Annual Operating Charges are hereby defined as the sum of the following costs and expenses: (i) gas, electricity, water, sewer and other utility charges (including surcharges) of whatever nature, (ii) insurance, (iii) building personnel costs, including, but not limited to, salaries, wages, fringe benefits and other direct and indirect costs of engineers, superintendents, watchmen, porters and any other building personnel, (iv) costs of service and maintenance contracts, including, but not limited to, chillers, boilers, controls, elevators, mail chute, window, janitorial and general cleaning, security services, and management fee, (v) all other maintenance and repair expenses and supplies which are deducted by Landlord in computing its Federal income tax liability, (vi) any other costs and expenses (i.e. items which are not capital improvements) incurred by Landlord in operating the Building, including ground rent, if any, and (vii) the cost of any additional services not provided to the Building at the Lease Commencement Date but thereafter provided by Landlord in the prudent management of the Building. If, after determination of the Base Operating Charges, Landlord installs energy saving devices designed to reduce the level of consumption of one or more utility services provided in the Building, then for purposes of subsection (i) of this ¶3(c), the charges for each such affected utility service shall be the lesser of either the actual cost of such utility service plus the amortized cost of purchasing and installing the energy saving device (as used by Landlord for federal income tax purposes), or the present cost of providing the same level of such utility service as was consumed in the twelve (12) month period immediately preceding the installation of the energy saving device(s) (level of service multiplied by present rate charges for such service). In the event that any business, rent or other taxes which are now or hereafter levied upon Tenant’s use or occupancy of the premises or Tenant’s business at the premises or on Landlord by virtue of Tenant’s occupancy of the premises, ...
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Increase in Operating Costs. In addition to each monthly installment of Base Rent Tenant shall pay to Landlord as Additional Rent nine percent (9.0%) (being the approximate and agreed upon proportion which the floor area of the Premises bears to the total rentable office area of the Office Complex and being herein referred to as the "Tenant's Proportionate Share") of the excess during each calendar year of the Lease Term of the Basic Cost (as hereinafter defined). All payments under this Section 3.3 shall be deemed and considered to be Additional Rent as defined in Section 3.4 hereof.
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Increase in Operating Costs. If Landlord's Operating Costs for any Comparison Year shall be higher than the Operating Costs for the Base Year, Tenant shall also pay to Landlord, as Additional Rent for the Comparison Year, Tenant's Proportionate Share of such increase.
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Increase in Operating Costs. Commencing on January 1, 1998, if Landlord's Operating Costs for any Comparison Year shall be higher than the Operating Costs for the Base Year, the Additional Rent payable by Tenant hereunder for the Comparison Year shall be Tenant's Proportionate Share of such increase.
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Increase in Operating Costs. Rent shall include Tenant's Percentage Share of the total dollar increases (separately determined), if any, in the Operating Expenses, Real Property Taxes and Insurance (collectively, the Operating Costs) paid or incurred by Landlord during each calendar year of the Term over the Base Year Operating Costs. If less than one hundred percent (100%) of the rentable area of the Building is occupied during the Base Year, Operating Expenses shall be adjusted to equal Landlord's reasonable estimate of Operating Expenses if ninety-five percent (95%) of the total rentable area of the Building were occupied during the Base Year.
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Increase in Operating Costs. A. If, in any calendar year commencing with calendar year 1995, Lessor's Annual operating Costs (as hereinafter defined) with respect to the Demised Premises shall be higher than such costs for the year ending 1995 (the "Base Year"), then in each such year during the Term, Lessee shall be obligated to pay, in addition to the monthly rental provided in Section 3 herein, an amount equal to Four percent (4%) of the excess over the Base Year's Annual Operating Cost (such percentage being based upon the square footage of the Subleased Premises to the Demised Premises). The term "Annual Operating Cost" is defined as meaning any and all expenses, as determined by generally accepted accounting practices, consistently applied, incurred in a calendar year by the Lessor in connection with the servicing, operation, maintenance, repair, and management of the Demised Premises, and related exterior appurtenances of which the Demised
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Related to Increase in Operating Costs

  • Operating Costs Tenant shall pay to Landlord the Tenant’s Percentage of Operating Costs (as hereinafter defined) incurred by Landlord in any calendar year. Tenant shall remit to Landlord, on the first day of each calendar month, estimated payments on account of Operating Costs, such monthly amounts to be sufficient to provide Landlord, by the end of the calendar year, a sum equal to the Operating Costs, as reasonably estimated by Landlord from time to time. The initial monthly estimated payments shall be in an amount equal to 1/12th of the Initial Estimate of Tenant’s Percentage of Operating Costs for the Calendar Year. If, at the expiration of the year in respect of which monthly installments of Operating Costs shall have been made as aforesaid, the total of such monthly remittances is greater than the actual Operating Costs for such year, Landlord shall promptly pay to Tenant, or credit against the next accruing payments to be made by Tenant pursuant to this subsection 4.2.3, the difference; if the total of such remittances is less than the Operating Costs for such year, Tenant shall pay the difference to Landlord within twenty (20) days from the date Landlord shall furnish to Tenant an itemized statement of the Operating Costs, prepared, allocated and computed in accordance with generally accepted accounting principles. Any reimbursement for Operating Costs due and payable by Tenant with respect to periods of less than twelve (12) months shall be equitably prorated.

  • Limit on Operating Expenses The Advisor hereby agrees to limit the Fund’s current Operating Expenses to an annual rate, expressed as a percentage of the Fund’s average daily net assets for the month, to the amounts listed in Appendix A (the “Annual Limit”). In the event that the current Operating Expenses of the Fund, as accrued each month, exceed its Annual Limit, the Advisor will pay to the Fund, on a monthly basis, the excess expense within the first ten days of the month following the month in which such Operating Expenses were incurred (each payment, a “Fund Reimbursement Payment”).

  • Operating Expenses During the term of this Lease Tenant shall pay to Landlord as additional rent all ad valorem taxes and operating expenses and other charges of every kind and nature (“Operating Expenses”) incurred or paid by Landlord in connection with the maintenance, repair, operation, management, or ownership of the Premises. If requested, Tenant agrees to pay Landlord on the first day of each calendar month, together with the payment of rent, such amount as Landlord estimates from time to time as necessary to pay such expenses. Landlord shall ▇▇▇▇ Tenant annually after the end of each year for such expenses. In the event the aggregate of Tenant’s installments during the year shall be less than the amount of Operating Expenses due from Tenant, such deficiency shall be paid to Landlord within ten (10) days after demand therefore. In the event the aggregate of Tenant’s installments during the year shall be more than the amount of Operating Expenses due from Tenant, such overpayment shall be applied to Tenant’s next monthly installment of Operating Expenses and Rent. As used herein, the term “Operating Expenses” shall include the cost of maintaining casualty and public liability insurance covering the Premises, real estate ad valorem taxes and all costs of managing, operating and maintaining the Premises, including but not limited to: costs of constructing, maintaining and repairing on site and off-site traffic controls; decorating, painting, lighting, sanitary control, and removal of trash, garbage and other refuse; maintenance, repair and replacement of utility systems serving any common areas, including water, sanitary sewer and storm water lines and other utility lines, pipes and conduits; costs of utilities, including water, sewer, electricity, and gas; janitorial, sweeping and cleaning services, trash bin rentals, trash pickup fees, licenses, permits and inspection fees; parking lot painting and restriping; planting, irrigating, gardening and landscaping; signs and markers; parking control and security guards and fire protection or detection service; all general maintenance and repair; other general operation and maintenance costs and expenses; all labor and supplies required by the foregoing; and administrative costs directly attributable thereto.

  • Total Operating Expenses All costs and expenses paid or incurred by the Company, as determined under GAAP, that are in any way related to the operation of the Company or its business, including the Advisory Fee, but excluding (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer and registration of securities, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt reserves, (v) incentive fees paid in compliance with the NASAA REIT Guidelines; (vi) acquisition fees and Acquisition Expenses, (vii) real estate commissions on the sale of Real Property, and (viii) other fees and expenses connected with the acquisition, disposition, management and ownership of real estate interests, mortgages or other property (including the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement of property). The definition of “Total Operating Expenses” set forth above is intended to encompass only those expenses which are required to be treated as Total Operating Expenses under the NASAA REIT Guidelines. As a result, and notwithstanding the definition set forth above, any expense of the Company which is not part of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes hereof. 2%/25% Guidelines. 2%/25% Guidelines shall have the meaning set forth in Section 13.

  • Common Area Operating Expenses Lessee shall pay to Lessor during the term hereof, in addition to the Base Rent, Lessee's Share (as specified in Paragraph 1.6(b)) of all Common Area Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in accordance with the following provisions: