Utility Billing Lease Addendum

This Utility Addendum is incorporated into the Lease and is in addition to all terms and conditions contained in the Lease. To the extent that the terms of this Utility Addendum conflict with any provisions of the Lease, this Utility Addendum controls.

Purpose of Addendum. When utility bills are paid by the Landlord ("Management"), residents have no incentive to conserve. This results in an unnecessary waste of our natural resources and adds to the overhead of the property, which can translate to higher rents. A recent (2004) EPA sponsored study showed that properties that bill residents for utilities use, on average, 15.3% less than properties that include the cost of utilities in with the rent.

Utility Charges ARE NOT Included in Rent. Resident understands that the monthly rent under Resident's Apartment Lease does not include charges for utilities and agrees to pay for all utilities, including but not limited to, the utilities covered by this addendum, separate from rent.

Monthly Utility Billing. Resident will be billed by for the following utilities plus applicable taxes on a monthly basis. Charges will be based on Resident's proportionate share of the property's overall expenses for the entire apartment community, including common area charges. The method of allocation used to determine the monthly utility charges for Resident's apartment will be based on:

Utility rates will be adjusted on a monthly basis to reflect the property's actual expenses. However, Management may, at their sole discretion, choose to use a 12-month average of expenses to determine billable expenses each month. Management may also limit the amount billed back to Resident to a set Flat Fee so long as the total billed back to all residents is less than the property's overall expenses. If a set Flat Fee is used, Management reserves the right to switch to the methodology above upon days notice to Resident. This will not be a revenue generator for the property. At no time will the total of utility charges billed to Residents exceed the overall amount charged to the property by the utility providers. The methods of allocation described above are different than the methods used by the utility providers.

Additional Provisions

1. 1. In addition to payment of the utility charges outlined above, Resident agrees to be responsible for payment of an Administrative Fee (Billing Fee) of per month and a onetime New Account Set-up Fee of . Resident agrees that the amount of both the monthly Administrative Fee and the one time New Account Fee is fair and reasonable.
2. 2. Resident understands that all charges and fees must be paid in full by the due date printed on each months billing statement. Per your lease, a Late Fee will be assessed if payment in full is not made by the due date. Resident understands and agrees that determining the actual cost to Landlord and/or when Resident fails to pay on time is impractical or extremely difficult to ascertain, but agrees that certain costs do occur and that the Late Fee specified in the lease is fair and reasonable compensation for those costs.
3. 3. All fraudulent, refuted or dishonored payments, whether by check or credit card, will be assessed a Reversal Fee or NSF charge plus applicable Late Fees. Resident understands that the actual cost to Landlord and/or when payments are reversed is impractical or extremely difficult to ascertain, but agrees that certain costs do occur and that the Reversal Fee or NSF charge is fair and reasonable compensation for those costs.
4. 4. If Resident fails to pay their utility charges by the due date, Resident agrees these charges and fees shall be considered additional (unpaid) rent and a violation under terms of the Lease. Resident further agrees that Management, at their sole discretion, can reject any tendered rent payment that does not include the additional payment of all utility charges and administrative fees due. Resident understands and agrees that Management may bring eviction proceedings against Resident for failure to pay their utility bill in full.
5. 5. When Resident moves from the property, Management will generate a Final Bill that estimates utility charges from the end of the last billing cycle to the expected move-out date. All utility and administrative charges, including the estimated Final Bill, must be paid in full by the move out date. Resident understands and agrees that any outstanding balance due, if not paid in full by the move out date, will be deducted from the Resident's Security Deposit.

1. 6. Resident agrees that Management shall not be liable for interruption or failure of utility services to resident or for any damages or inconveniences caused directly or indirectly by interruption or failure of such services.
2. 7. Landlord has the right to change billing service providers and/or modify the method by which utilities are furnished or billed to Resident during the term of this Lease upon days written notice to Resident.
3. 8. If any part of this addendum is found to be invalid or unenforceable, then that part of the addendum shall not affect the validity or enforceability of the remainder of this addendum.