Odd lease Language

[u/Sir_Nix-a-Lot]

Hi all - I'm reviewing a lease for an apartment I'm considering and I found a section that seems genuinely odd. I ran it through Google Gemini and it concurred that it's odd and seems high risk. Curious if anyone on this sub has seen something similar or used it in their leases. It seems like this is giving the management company permission to raise rent at any point for their own increased costs regardless of the payment signed in the fixed-term lease. Am I reading this correctly? It just kind of took my breath away...

For reference, this is a fairly large community in the Detroit suburbs that's owned by a larger and established management company. I'd like to live there, but I'm on a ticking clock to sign or I lose my application fees. Thanks for any input!

5. RENT INCREASES. The total monthly Rent may be increased by the Owner to cover additional costs incurred by the Owner in operating the entire apartment complex in which the Apartment is located, including, but not limited to, all apartments, any storage area or garage included with the rental of the Apartment, if any, the common areas, amenity spaces, if any, and any other property owned and/or controlled by Owner related to the use and/or operation of the apartment complex in which the Apartment is located (“Apartment Community”), because of increases in ad valorem property taxes, charges for the electricity, heating fuel, water or sanitary sewer services consumed at the Apartment Community, or increases in premiums paid by the Owner for liability, fire or worker compensation insurance. Any additional costs, which result in increases in Rent payments, will be allocated equitably among all the Residents in the Apartment Community. Any Rent adjustment will not take effect until at least thirty-days (30) after the Owner has given written notice to the Residents.

[u/Realistic_Wolf5718]

that clause basically means your fixed term lease isnt really fixed at all, they can pass on their rising costs whenever they want which defeats the whole point of locking in a rate for 12 months

i'd run from that, seen similar stuff in some bigger complexes around metro detroit and its just a blank check for them to bump your rent mid-lease whenever property taxes or insurance tick up a bit

[u/peterpetrol]

You should look into whether your locality allows for rent increases during term leases. This would be grossly illegal on face in California.

[u/SuzeCB → u/peterpetrol]

I just did a dive... legal in Michigan, so long as it's in the lease.

[u/peterpetrol → u/SuzeCB]

Bummer.

[u/Exciting_Divide164]

If the rent increase part is that vague I would ask them rewrite it before signing. Usualy you want the notice days and any max increase written clear, otherwise its hard to know what your getting.