Water and Sewer Bill- commercial property?

4 Replies

I’m in the process of buying a commercial property with an auto body shop. This property is next to a bar my families owns in upstate NY. We are doing seller financing. The cash flow is a bit tight but we are buying it for appreciation due to new developments in the area.

In our lease agreement, that our attorney drafted, he had me paying the water and sewer, insurance and taxes.

Is it common for a landlord to pay for water and sewer in a single unit commercial property?

Thanks everyone for your feedback in advance!

No way. We have several & they ALL pay every cost associated with the property.

With those we seller financed they also pay into an escrow account for taxes, ins & all utilities & we charge an admin fee for the accounting of same. They also pay any & all maintenance costs including any building compliance issues arising from their occupancy & changes to the building. A mandated commercial fire sprinkler system with 24/7 1st responder monitoring ($100/month) is a big one.

You need another attorney!!!

Another view is since water and sewer service fees can be liened by the the authority or municipality for non-payment and the property potentially condemned if the service shut off, I pay those and calculate it into my leases.  I bill back for overages.  It makes it easier to recover and turn the property back over if something goes south with the lessee.

Originally posted by @Bruce Thomsen :

I’m in the process of buying a commercial property with an auto body shop. This property is next to a bar my families owns in upstate NY. We are doing seller financing. The cash flow is a bit tight but we are buying it for appreciation due to new developments in the area.

In our lease agreement, that our attorney drafted, he had me paying the water and sewer, insurance and taxes.

Is it common for a landlord to pay for water and sewer in a single unit commercial property?

Thanks everyone for your feedback in advance!

 Can you clarify whether LL is responsible for transmission of payment vs. ultimate financial liability? I think this may just be a miscommunication.