Rent in Privately-Owned Space

4535 - Rent in Privately-Owned Space (Rev. 1, 05-21-04) Charges against CMS funds for privately-owned space, including expenses for services and maintenance, repairs, and alterations, must not exceed the rental rate of equivalent space and facilities in the same or similar locality. In contracting a lease for privately-owned space, include cancellation or conditional clauses in rental agreements. The following guides are applicable with respect to the rental of space in privately-owned buildings when renewing an existing lease or when obtaining new or additional space under a lease: 4535A - Cancellation Clause (Rev. 1, 05-21-04) When executing or renewing leases, the SA should make every effort to include a reasonable right of cancellation (30 days, if possible) for the State, if such right can be included in the light of rental rates, probable permanency of occupancy, and other pertinent factors. Secure a cancellation clause in all rental agreements covering space for more than one year, if possible. 4535B - Lease Not Exceeding One Year (Rev. 1, 05-21-04) When the SA is unsuccessful in securing a cancellation clause, secure leases not to exceed one year’s duration, if possible, with an annual renewal option for an extended period such as 3 or 5 years. 4535C - Consulting RO (Rev. 1, 05-21-04) Where neither of the above is possible, consult the RO at least 30 days in advance of the date the lease will be signed.