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...
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, ...
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.
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.
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.
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.
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