Question:
Does a Landlord have to give advance written notice to a Tenant of an increase to TMI? (ie. 60 days written notice?)
Answer:
Usually, you would find something in the Lease and that would govern, but assuming that the entire TMI issue is overlooked, the default position is that the TMI is the responsibility of the Tenant to pay directly. This also means that no notice of any kind would be required.
Arrangements are then only modified by the commercial lease, such that the Landlord takes on the duty of payment.
It is noteworthy that there could be considerations under the Commercial Tenancies Act and the Short Forms of Leases Act, although there is nothing specific on TMI or related notice provisions in either Act.
Brian Madigan LL.B., Broker
Comments 4
I pay directly from my checking account (TMI:) Property tax (commercial and residential), Property Insurance and Water.
I want that my tenant covers via TMI to cost of commercial portion of the Property tax, Property insurance and Water bill, basicaly covers the cost of TMI that I already paid.No HST would be charged.
When reporting to CRA, I would not claim expenses paid but also I would not report TMI since that is not income nor rent.
Is this proper way?
Author
Always best to check with your accountant, but, it certainly looks like it should work.
Does TMI have to equate to actual expenses in Ontario or can the landlord set it at whatever the market will bear?
Author
Very often the TMI is estimated for the year in advance. Then, it would be reconciled at the end of the year when the actual numbers are in.