As The Lease Coach, we have found that some landlords are overcharging tanning tenants for more square footage than the tenant actually has. Tenants frequently trust the reported square footage of their leased premises. However, the square footage stated in the lease can easily be wrong. Tanning tenants, therefore, needlessly pay an increased rent based on their incorrect square footage — isn’t it better to keep this money for yourself than pay it to your landlord?

Even the smallest amount of phantom space — space that you’re paying for that doesn’t exist — can negatively affect tenants, as rental rates and Common Area Maintenance (CAM) charges increase over time. Tanning tenants should also consider how phantom space can repeatedly affect them. Every tenant pays two rents: the base rent, which is negotiable, as well as the Common Area Management (CAM) charges. CAM costs cover charges on property upkeep which benefits all tenants and are charged proportionately. Therefore, if a tenant occupies 1800 square feet, they are also responsible for the CAM charges on that area. If that tenant has been wrongfully paying for phantom space, they will also wrongfully pay too much for CAM charges.

Click here to read the entire article in the latest issue of Smart Tan Magazine online.