This office lease clause is a landlord-oriented electricity clause. It provides a considerable profit center for the landlord and picks up most of the characteristics and issues where the lessee agrees that lessor may furnish electricity to lessee on a "submetering" basis or on a "rent inclusion" basis.
Rhode Island Profit Maximizing Aggressive Landlord Oriented Electricity Clause (RI-PMALEC) is a type of contractual provision commonly found in rental agreements across Rhode Island. This clause is designed to ensure that landlords have greater control over electricity consumption within their rental properties, ultimately aiming to maximize their profits. It establishes specific guidelines and obligations for tenants regarding electricity usage, billing, and responsibilities. Key features of the Rhode Island Profit Maximizing Aggressive Landlord Oriented Electricity Clause may include: 1. Electricity Usage Limits: The clause may set limits on the amount of electricity usage permitted by tenants. This could either be a fixed amount or a usage threshold. Tenants exceeding these limits would be liable for additional charges or penalties. 2. Submetering and Direct Billing: Landlords might require the installation of submeters in individual rental units, enabling accurate measurement of electricity consumption for each tenant. This facilitates direct billing, ensuring tenants are responsible for paying their own electricity charges. 3. Higher Electricity Rates: The RI-PMALEC may allow landlords to charge higher electricity rates compared to standard utility rates. This enables landlords to profit from the electricity consumption of their tenants. 4. Power Interruption Control: Landlords may have the authority to interrupt or limit the power supply to rental units under certain circumstances. This control allows them to regulate electricity consumption and reduce costs if deemed necessary. 5. Tenant Responsibility for Maintenance: The clause may shift maintenance responsibilities for electrical systems, such as wiring and fixtures, onto the tenants themselves. This reduces the landlord's financial burden and encourages tenants to be mindful of energy usage. Variations of the Rhode Island Profit Maximizing Aggressive Landlord Oriented Electricity Clause might include: 1. Fixed Electricity Fee: Instead of charging tenants based on actual usage, landlords may impose a fixed monthly fee for electricity. This may be advantageous for landlords as it eliminates fluctuations in usage and ensures a consistent income. 2. Electricity Markup: Landlords might apply a percentage markup to the actual electricity charges, allowing them to profit from the resale of electricity to tenants. This markup is in addition to any administrative fees or maintenance charges. 3. Individual Metering: Landlords may opt for individually metered electrical connections for each rental unit. This approach grants tenants more autonomy in managing their electricity consumption and eliminates disputes over shared utility costs. In summary, the Rhode Island Profit Maximizing Aggressive Landlord Oriented Electricity Clause aims to give landlords greater control over electricity consumption and generate additional income. It may feature limits on usage, submetering, direct billing, higher rates, power interruption control, and tenant maintenance responsibilities. The clause can take various forms, such as fixed fees, electricity markups, or individual metering, suiting different landlord preferences and business models.
