Rent Sharing

by Gail
(Pennsylvania)

We have a tower lease that has multiple subleases. Our Master lease provides for 50% rent sharing for all rents collected by the tenant pursuant to any sublease, tenant shall share the rents collected by each sublease in equal shares with Landlord, less any such actual costs of legal fees, court costs or collection agency fees.

Each of the subleases contain one paragraph that states rental and another that provides an additional monthly amount attributed to either a rental sharing reimbursement or a pass through fee. My view is that it doesn't matter what you call it, they are collecting a rental for the property and should be sharing equally with landlord in accordance with the master lease. If not, what would prevent the tenant from stating the rent for subleases at a below market rate and raising "pass-through". rental reimbursement or other such fees thus not paying its fair share to the Lessor of the Master lease?

Is this an accurate interpretation?