What's TMI?
- “T” = Property T axes
- “M” = M aintenace expenses
- “I” = Building I nsurance.
Personal Content Insurance is not included.
The Landlord will expect a copy of your Insurance Policy prior to occupancy.
How is the monthly rent calculated ?
Example for 2,800 square feet of office space: $10.00 base rent + $7.00 T.M.I.
$10.00 Net + $7.00 TMI = $17.00 (Gross) x 2,800 sq.ft. = $47,600.00 annually
or monthly payments of = $ 3,966.66 + 6% gst.
Initial deposit payment required ?
Deposit Structure: (using figures from above example)
| FIRST MONTHS NET RENT: |
$2,333.33 |
| FIRST MONTHS T.M.I .: |
$1,633.33 |
| LAST MONTHS NET RENT: |
$2,333.33 |
| LAST MONTHS T.M.I .: |
$1,633.33 |
| SUB TOTAL + GST: |
$7,933.32 + 6% GST: $ 475.99 |
| TOTAL DEPOSIT DUE : |
$8,409.32 |
Your Deposit payment is due and payable once an agreement to Lease has been executed by both parties. Post-dated cheques are required upon occupancy. Some landlords require additional security. Utilities Costs ?
- Office Building & Towers usually include Heat & Hydro costs in the T.M.I.
- Office Space located in some commercial buildings don't include utilities in the T.M.I.
- Please refer to the “Utilities Included” box for each property to verify if included.
What's “Tenant Inducements” – Free Rent
- Negotiate with the Landlord for some free rent time in order to set up your Business.
- One Year Lease Terms don't usually allow for any free time.
- Three, Five and Ten Year Lease Terms can expect anywhere from 30 days up-to 90 days of free time. Please note that T.M.I. and utilities are not usually free during this free-time but everything is negotiable.
Don't feel 100% comfortable signing the Agreement ?
If you want the office space you just inspected, but you're unfamiliar with the terms of the documents, the easiest solution to tie up the space, is to simply include a clause in the agreement making the deal conditional upon the approval of your Solicitor . Ask for 5 days time to show it to your Lawyer. If you're not satisfied with the agreement you can then re-negotiate the terms or you may terminate the agreement.
Do you have a question ?
What's on your mind? Send me an e-mail and I'll reply with an answer within the same day!
Contact Rino Bancheri at offices@rogers.com
Stress-Free Office Space Interiors :
Office Solutions can coordinate every detail when it comes to locating, leasing, designing, renovating, wiring and furnishing your new Office Space.
Contact us to arrange a free consultation to discuss your office space needs.
416.505.6302 or offices@rogers.com
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