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A percentage rent clause is a provision in a commercial real estate lease that requires a tenant to pay a portion of the...
09/15/2026

A percentage rent clause is a provision in a commercial real estate lease that requires a tenant to pay a portion of their gross sales revenue to their landlord as rent if their revenue exceeds a set amount. This percentage rent is typically accompanied by a fixed amount of rent that is paid every billing period, regardless of the business’s performance. This can lead to rent costing more or less for the tenant, depending on the success of their business. This is most common in shopping malls or in other rented business spaces.

Components of a percentage rent structure include:

➡️ Base rent: This is typically a fixed amount that must be paid every billing period. This will not change and is not based on the performance of the leasing business.

➡️ Breakpoint: This is typically a dollar amount threshold of gross sales revenue that must be met for the additional performance-based portion to be applicable. The breakpoints can be one of two ways:

➡️ Natural Breakpoint: This is calculated by dividing the yearly base rent by the agreed-upon percentage rate.

➡️ Artificial Breakpoint: This is any breakpoint that differs from the natural breakpoint described above. This artificial breakpoint can be based on projected performance, market conditions, or any other relevant factor. This can be negotiated between the landlord and tenant.

➡️ Percentage Rent: This is a variable amount of rent that is based on a percentage of all sales that exceed the breakpoint.

In most cases where percentage rent clauses are utilized, the tenant pays a base rent each billing cycle (usually once per month). Each billing cycle, the tenant reports their gross sales revenue to their landlord. If this amount is above the agreed-upon breakpoint, then the tenant is responsible for paying the landlord a set percentage of that exceeding sales revenue. If the breakpoint was not reached, then the tenant does not have to pay anything additional.

Benefits of a percentage rent structure include:

➡️ Aligned interests: Percentage rent clauses are a great way to align interests between landlords and tenants. If a tenant’s business succeeds, both landlord and tenant will share in that success.

➡️ Mutual protection when there is lower productivity: In the event a tenant’s business does not succeed past the breakpoint, the landlord will still get their base rent, but the tenant will not have to pay anything more.

Downfalls of a percentage rent structure include:

➡️ Fluctuating rent: Operating under a percentage rent structure means that a tenant might owe the landlord a vastly different amount in rent each billing cycle. This can be difficult for the landlord and tenant alike to plan their income/expenses each billing cycle.

➡️ More reporting: The tenant will have to keep highly accurate and transparent records, and the landlord will have to verify these records on a regular basis. Each party will have to devote a significant amount of time to ensure the rent has been calculated properly each month, which can increase administrative costs.

To determine if a percentage rent clause is right for you, whether you are a landlord or tenant, it is important to discuss it with an attorney. Contact one of our real estate attorneys today by calling 608-784-8310 or reach us via email.

Do you need a license to open an Airbnb in Wisconsin?Renting your property on Airbnb, VRBO, or any other short-term rent...
08/28/2026

Do you need a license to open an Airbnb in Wisconsin?

Renting your property on Airbnb, VRBO, or any other short-term rental platform is an increasingly common practice. It can offer you financial benefits, flexibility, and many other perks. It is important, however, to follow the proper procedures when renting out your property.

In Wisconsin, a residential dwelling offered for rent for a fee for fewer than 30 consecutive days is generally a “short-term rental.” If it is operated for more than 10 nights each year, the operator must obtain a Wisconsin tourist rooming house license through the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). This license requires an annual license fee, as well as a one-time pre-inspection fee. Applicants must complete DATCP’s licensing process, including the required pre-licensing inspection and compliance with applicable lodging rules.

Consult your local county and municipality to determine if there are any other regulations that must be followed. For example, certain counties require rental owners to obtain a county license. Some counties also require rental owners to enforce certain rules when their properties are rented out. Each county and city is different, so be sure to investigate.

If your rental property is located within a homeowner’s association, determine whether there are any bans or regulations against short-term rentals. Many homeowner’s associations have provisions that restrict or completely ban rentals, which may impact your ability to rent. It is also important to determine if it would be likely for these bans or regulations to be voted in anytime soon, as that can impact your long-term ability to rent.

Real estate attorneys can help prospective rental owners ensure they are following the proper laws and regulations before renting their property. To consult with an attorney on your status as a prospective rental owner, contact Moen Sheehan Meyer today at 608-784-8310 or online.

We are pleased to share that Attorneys Kara Burgos and James Naugler were selected by their peers for inclusion in the 2...
08/20/2026

We are pleased to share that Attorneys Kara Burgos and James Naugler were selected by their peers for inclusion in the 2027 edition of The Best Lawyers in America® in the field of Insurance Law. Congratulations, Kara and James!

Recognition in Best Lawyers reflects the confidence and respect of fellow lawyers who know the work and the profession. Recognition is determined through a peer-review process.

Happy National Paralegal Day! Thanks to all of our dedicated paralegals for their hard work and effort. We appreciate yo...
08/06/2026

Happy National Paralegal Day! Thanks to all of our dedicated paralegals for their hard work and effort. We appreciate you!

When birth parents choose adoption, they often do not have any further involvement in the child’s life. However, an open...
07/27/2026

When birth parents choose adoption, they often do not have any further involvement in the child’s life. However, an open adoption is different. An open adoption allows birth parents to remain involved in the child’s life to some extent. An open adoption may be a good choice for some parents, especially if they wish to be part of their child’s life. Both adoptive parents and birth parents need to fully understand the way open adoptions work in order to ensure that they are comfortable with the arrangement.

Typically, in closed adoptions, the birth parents give up their rights and are completely out of their child’s life once the adoption is complete. Wisconsin adoption records are generally confidential, but access to identifying information depends on the applicable statutes and release rules. However, in an open adoption, the birth parents may be known to the child and the adoptive family. Birth parents and adoptive families may voluntarily agree to ongoing contact, such as visits, letters, photos, or participation in milestones. In Wisconsin, post-adoption contact agreements are generally not enforceable as parental rights after finalization, though a court may order reasonable visitation in limited circumstances. Because the arrangement relies on mutual goodwill rather than a legal right, it's important for both sides to discuss expectations clearly with an attorney before finalizing the adoption.

There are several pros and cons to open adoption. An open adoption may help adopted children be more comfortable with their identity and may assist them in feeling more loved and supported. Children may be able to connect with their biological siblings, giving them a larger familial circle. Children may have access to medical and genetic information that can be beneficial.

However, there may be some disadvantages to open adoption. Adoptive parents may not wish to share their child with another parent or family. If the birth parents are unfit, they could pose a potential risk to the emotional stability of the child. Adoptive parents and biological parents may not always agree about the way to raise the child, and these conflicts can be harmful to the child. In some cases, the birth parents may stop being as involved in their child’s life, especially when they move on with their lives, and this can cause a child to have emotional issues.

It is always helpful to seek guidance from a knowledgeable attorney when making important decisions about adoption. Your lawyer will help you understand and address the issues so you are comfortable with the choices you make. You should be aware of the legal ramifications of each type of adoption before you enter into an agreement. To learn more about adoptions, contact us at (608) 784-8310 or online to request a consultation.

Wondering how far a fence must be from a property line?Before you build a fence or any other structure on your property,...
07/13/2026

Wondering how far a fence must be from a property line?

Before you build a fence or any other structure on your property, verify the property lines and consider obtaining a property survey if the lines are uncertain or disputed.

Your local jurisdiction may also require a survey or site plan before approving a permit. If you recently purchased your property, you may have a current survey that will be sufficient. If you cannot locate your property's original surveyor pins, or if your neighbor disputes the boundary, then you will likely need to hire a surveyor.

It is important to note that if a person builds a fence and it is later found to be on the adjoining land, Wisconsin state law requires the owner to relocate the fence to the correct boundary line within 30 days of receiving written notice from the neighbor.

Generally, fence placement is governed by local ordinances, and many Wisconsin municipalities allow fences up to the property line unless a setback, easement, right-of-way, or other local rule applies. In some cases, you may prefer not to lose any part of your lot to a fence. If so, you may want to build a fence directly on the property line. When a fence is to be built on a shared boundary, you should confirm local rules and obtain written agreement from the adjoining owner, especially if you want to place the fence exactly on the boundary.

Check with your local town or county to determine the requirements for building a fence on your property. A permit may be required before you begin construction. In addition, your local jurisdiction may require a survey, site plan, or other proof of property lines before approving a fence permit. There may be specific requirements for fence height and materials, as well as details about where you can build a fence on your property. And, keep in mind that regardless of local ordinances, Wisconsin prohibits "spite fences," which are fences exceeding 6 feet in height built solely to maliciously annoy, spite, or obstruct a neighbor.

An attorney can assist you through the legal process and can help if you get into a dispute with a neighbor or municipality regarding your fence. Call us today at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or email us to schedule a consultation

Not sure which assets belong in a trust and which don't?Life insurance and retirement accounts usually pass by beneficia...
06/08/2026

Not sure which assets belong in a trust and which don't?

Life insurance and retirement accounts usually pass by beneficiary designation and are often left outside a revocable trust. Vehicles are often left outside a trust for convenience, while checking accounts may or may not belong in a trust depending on the estate plan.

No matter the size of your estate, a plan protects what you've worked hard to build, and makes sure it goes to the people you intend it for.

Our estate planning attorneys are here to help.

What can a landlord deduct from a security deposit in Wisconsin?Wisconsin law generally allows landlords to deduct amoun...
05/18/2026

What can a landlord deduct from a security deposit in Wisconsin?

Wisconsin law generally allows landlords to deduct amounts reasonably necessary for unpaid rent, unpaid utilities the tenant was responsible for, damage beyond normal wear and tear, and cleaning costs beyond ordinary turnover cleaning. If the landlord withholds any portion of the deposit, they must provide an itemized statement of the deductions.

If a tenant moves out before the lease ends, the landlord may also be able to recover reasonable re-renting costs and unpaid rent, but the landlord must take reasonable steps to mitigate damages.

Legal disputes between landlords and tenants can be challenging. To learn more, contact our legal team at Moen Sheehan Meyer, Ltd. at (608) 784-8310 or online to schedule a consultation.

Thinking about starting an online business? You're not alone: e-commerce continues to grow rapidly, and many entrepreneu...
05/05/2026

Thinking about starting an online business? You're not alone: e-commerce continues to grow rapidly, and many entrepreneurs are wondering whether they need an LLC to get started.

The short answer: no, an LLC isn't required to launch an online store. But it may offer some real advantages, including personal asset protection, flexible tax options, and added credibility with customers.

If you do decide to form an LLC in Wisconsin, there are several steps involved. You’ll file Articles of Organization with the Department of Financial Institutions. Depending on your tax and sales activities, you may also need an EIN and a seller’s permit.

Every business is different, and the right structure depends on your specific goals and circumstances. Consult with one of our business attorneys to find the best fit for your situation.

Mediation can be a great option for resolving disputes, but you may be wondering about confidentiality. Here's what you ...
04/17/2026

Mediation can be a great option for resolving disputes, but you may be wondering about confidentiality. Here's what you need to know:

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La Crosse, WI
54601

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