service air conditioners?

[stephenb465]

I have an investment property, it was half residential and the other half commercial but in the last 6 months the owner of the business moved out and expanded their business to upstairs.

Now, I have just received an e-mail asking for me to service a couple of air-conditioners as they are having problems with them, is it up to me to service them? In the lease agreement there is nothing said about that and I know if I do it this one time it will set a president for the future.

Any feed back would be apprecated

 

[chrispy]

I have both residential and commercial properties and always get airconditioners serviced on an annual basis, at my cost.

They are my asset and if they break down through lack of service it is my responsibility to replace them. So I make sure they are cleaned and serviced just before the summer each year.

I have an agreement with a service company and they email me at the appropriate time as a reminder.

Chris

 

[stephenb465]

Thanks for the advice, I was going with the attitude your problem not mine.
Maybe I could offer that I meet them half way, in costs, if they service the air conditioner each year.

 

[wylie]

Dazz, Dazz, where are you??

 

[Sheryn]

Gee whiz....


Just had our IP air conditioners serviced cost $60 but I was given a $10 discount so only cost $50.


Regards
Sheryn

 

[steveadl]

In the property I lease, aircond. maintenance was always at my expense. I then decided to give up as the buildings a/c was useless to us, so at my own cost had a new split system installed. But to do this I needed the LL's premission which he agreed to (why the hell wouldn't he!) on the condition the new a/c stays there if I vacate.

It's good to be a commercial LL!

 

[boods99]

Out of the several commercial properties that we manage, all of the Leases (except one) state that air con maintenance, and all other building maintenance, are to be covered by the tenants. Some Leases I have seen are worded very ambiguously when it comes to who pays for building maintenance etc...sometimes you can tell that the document was drawn up by the Lesee's solicitor.

I think one of the hardest things to get your head around when diving into the world of com property is the vast differences between the Leases of Resi and Commercial. At first you sometimes feel "naughty" for asking the com tenants to pay for things that you would not even dream of thinking about asking a resi tenant!

Boods

 

[stephenb465]

So what are the kind of things you can get the tenant to pay?

Rates, water rates, water usage, strata fees, maintenance in the building, how about the legal documents for the lease?

The tenant is getting a lawyer to write up a lease and wants me to pay half, also half of the service of the air conditioner and some sort of “first right of refusal” this is what the tenant lawyer has written in a e-mail to me “in the event that you list the property for sale and further an option enforceable by our client that you sell to it the property at a predetermined time at the prevailing market value”
Sounds like trouble to me

Funny thing is that the tenant still has a lease until March next year and she is a week behind in rent and has so far not paid the required Bond, By the way did I tell you the tenant is my Ex partner where I cancelled the wedding 2 months before we where due to get married, (She runs a business from the building)

Isn’t life great

But, some advice would be great

Thanks
Stephen

 

[steveadl]

Stephen, why the hell are you letting your tenant and her lawyer draw up a new lease??!!

You're the owner of the building, draw up a lease that suits you. If she doesn't like some of the terms, then she can try to alter certain items, but that's the point - she has to negotiate with you, not the other way around!

 

[Dazz]

The tenant is getting a lawyer to write up a lease and wants me to pay half, also half of the service of the air conditioner and some sort of “first right of refusal” this is what the tenant lawyer has written in a e-mail to me “in the event that you list the property for sale and further an option enforceable by our client that you sell to it the property at a predetermined time at the prevailing market value”
Sounds like trouble to me

Funny thing is that the tenant still has a lease until March next year and she is a week behind in rent and has so far not paid the required Bond, By the way did I tell you the tenant is my Ex partner where I cancelled the wedding 2 months before we where due to get married, (She runs a business from the building)

Isn’t life great

But, some advice would be great

...after reading that, my only suggestion is that the Banks are paying a decent rate of return for cash investments.

 

[boods99]

stephen,
It would be in your best interest to get your lawyer to draw up the Lease, subject to your conditions. The Lease could state that all costs involved in the drawing up of the Lease, and any other leagal issues that may be associated with the Lease agreement, are payable by the Tenant.

A first right of Refusal is a pretty standard request from tenants, as it gives them the right to purchase in the event that you put the building up for sale. You could change the wording though to work in your favour by stating they have the first right of refusal once you have accepted a written offer from another party, as this will force them to match their offer (this is to get the maximum price for you, as someone may be willing to pay you an amount above reasonable market value if they want the property enough.) I would put a time limit on this clause, say 48 hours, as the other buyer will have to be made aware that their offer will be accepted once the Tenant has waived their right to purchase, and this could take a while...you dont want to put the prospective purchaser off.

Another reason they request a FROR is that any options attached to a Lease become unenforceable when the property changes ownership unless the Lease and options are registered. This costs money and a great deal of people do not bother to do so.

Boods