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The rent split advice from my uncle saved my bakery lease last month
My uncle runs a deli over in Hamtramck and kept telling me to split my storefront lease into two separate agreements, one for the front retail and one for the back kitchen. I thought he was nuts, figured the landlord would see through it. Then my sales dipped 30% in March after that pothole wrecked the curb out front and foot traffic died. Landlord tried to raise my rent by $400 because of a property tax reassessment, but that split meant the back portion qualified as commercial storage, which has a different tax rate in Detroit. He backed off and I only paid $120 extra instead. Has anyone else used a lease split to dodge a hike in this city?
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diana6172d ago
Used to call lease splitting a landlord loophole gimmick. This actually makes sense now, especially with how Detroit taxes storage differently.
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