USA – IOWA Law and Practice Contributed by: David M. Erickson, Christopher S. Talcott, Amy S. Montgomery and Shannon M.H. Hasse, Dentons Davis Brown PC
6.9 Payment of Maintenance and Repair See 6.4 Typical Terms of a Lease . 6.10 Payment of Utilities and Telecommunications As with charges for maintenance and repairs to common areas of the rental property, charges for services, utilities and telecommunications are most frequently paid indirectly by the tenant through the additional rent payments made as part of operating expenses. However, any ser - vices that are provided directly to the tenant, or which are capable of being separately metered, will most often be paid directly by the tenant to the service provider. Services that are not sep - arately metered or not capable of segregation are generally covered by the operating expenses owed by each tenant. 6.11 Payment of Property Taxes As part of the operating expenses, the landlord will usually collect for reimbursement of prop - erty taxes, with the landlord being responsible for paying them directly to the county treasurer; however, payment of property taxes is a negoti - ated item and payment arrangements can vary with them being included in base rent or, less frequently, paid to the county treasurer directly by the tenant. 6.12 Insurance Issues As part of the operating expenses, the landlord will usually carry extended coverage insurance against loss, damage or destruction by fire or other casualty, which will insure the building, most often for an amount not less than the full insurable value on a replacement cost basis. The tenant will ordinarily be required to carry casualty and liability insurance in given amounts depending on the tenancy, protecting the land - lord against such things as harm to person or property. The tenant may also be required to
through rental escalators where the rent increas - es by a set percentage for each renewal term. In certain circumstances, the rent may vary and be based on retail sales (if applicable), at least in part. In some agricultural leases, the rental escalators that are built in are derived through an annual cash rent survey, which is compiled and
published by Iowa State University. 6.6 Determination of New Rent
See 6.5 Rent Variation . 6.7 Payment of VAT
No taxes or governmental levy are payable on rent in Iowa, beyond state and federal income taxes. 6.8 Costs Payable by a Tenant at the Start of a Lease Generally, a tenant may be required to make payments to the landlord at the commencement of the lease in addition to the first month’s rent. In almost every case, the tenant will be required to pay a security deposit, which the landlord will hold in trust pending the tenant’s fulfilment of its obligations under the lease. Further, a ten - ant may be required to contribute some amount to capital improvements, although this practice varies greatly from lease to lease. In some cases, any capital improvements to the leased premises must be contracted for, carried by and paid for by the tenant. In other cases, the landlord will undertake all capital improve - ments and figure the cost of such improvements as part of the rent to be charged. In certain other circumstances, the landlord may provide a build- out allowance, with any additional improvements to be paid for by the tenant.
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