Is my property manager lying to me about repairs?

[forced_eg]

Hey I own a shop in northeast Calgary and the roof has been leaking for quite some time, I finally got around to calling my property manager and addressing the issue. His words were "roof leaks are your responsibility" my words were "but I pay nearly 2000 in monthly maintenance and condo fees" his words were "those are allocated to outdoor repairs such as snow removal and landscaping..."

WTF!! Is he bullshitting me? Who can I contact to find out? Should I get in touch with the building owners (opus realty) or a lawyer? Or hack something up to fix it and call it a day?

Thanks, Ravi

[project240]

Unless your contract specifically states otherwise, roof repairs are 100% the responsibility of the landlord.

[ExtraSlow]

sounds like bullshit. The "building envelope" should be the responsibility of the owner.

[TomcoPDR]

Originally posted by project240
Unless your contract specifically states otherwise, roof repairs are 100% the responsibility of the landlord.

It's a commercial lease. Terms of maintenance and repairs for this stuff should be stated in these thick ass leases.

[project240]

Originally posted by TomcoPDR


It's a commercial lease. Terms of maintenance and repairs for this stuff should be stated in these thick ass leases.

Yeah, just reread and saw it was a shop... even then, as you mentioned, it should be very specific one way or the other in the lease.

[Jason Lange]

In my experience with commercial leases, it has always been the building owner that took care of roof leaks/building envelope repair. Read your lease, I am 99% sure it won't be your responsibility.

[Hallowed_point]

I can't understand how in the hell a roof leak could be considered the responsibility of the tenant. The property manager is supposed to act in the best interests of the owner, which includes fixing things like this in a timely manner before there is more damage/mold etc.

GL

[dj_rice]

Maybe ask if he needs any exhaust work on his car. Maybe he'll change his mind on the roof leaks once he knows you guys are the best

[CanmoreOrLess]

2K in monthly fees for snow removal and grounds care? How has that helped your small business one fucking bit? I know I look for a well groomed garden and clean snow removal when I select a quality business. Nice scam if you can get away with it. I'd think the property manager knows his stuff, he too gets a nice chunk of that mafia monthly fee. How much in billings do you need in order to cover the 2K? That is an even sicker part to this story.

Look to relocate and stop the monthly anal rape. Call a lawyer, building owner, etc just to be sure. Pisses me off how small businesses get shafted on deals like this, when they are good businesses it is even worse.

[5fivespeed]

Ravi,

You got a lease? I'll come by and look at it, my lease for my business I went through like crazy.

Ray

[R-Audi]

While its a boring read.. it should be pretty clear in the lease as to whose responsibility it is.
Items like this are why you need a good broker when inking your deals! Landlords can sneak small things like this in to unsuspecting tenants.

[dr_jared88]

Its probably a triple net lease. Basically you are responsible for everything.

[BananaFob]

Originally posted by dr_jared88
Its probably a triple net lease. Basically you are responsible for everything.

... triple net just means he pays for basic rent, op cost and property taxes. It has nothing to do with the other terms of the lease.

[dr_jared88]

Originally posted by BananaFob


... triple net just means he pays for basic rent, op cost and property taxes. It has nothing to do with the other terms of the lease.

I believe you are wrong. This is what I found.

For example, if a property owner leases out a building to a business using a triple net lease, the tenant will be responsible for paying the building's property taxes, building insurance and the cost of any maintenance or repairs the building may require during the term of the lease. Because the tenant is covering these costs (which would otherwise be the responsibility of the property owner), the rent charged in the triple net lease is generally lower than the rent charged in a standard lease agreement.

Read more: http://www.investopedia.com/terms/n/...#ixzz1sPy3e7TY

Source:
http://www.investopedia.com/terms/n/...#axzz1sPxsugbw

[BananaFob]

Originally posted by dr_jared88


I believe you are wrong. This is what I found.





Source:
http://www.investopedia.com/terms/n/...#axzz1sPxsugbw

Sigh. I cut my teeth in the industry reading hundreds upon hundreds of commercial leases but sure, I'll educate you.

TRIPLE NET LEASES

There are numerous forms of net leases. The most common of these is the Triple Net lease. In a Triple Net lease, the tenant is responsible for their proportionate share of property taxes, property insurance, common operating expenses and common area utilities. Tenants are further responsible for all costs associated with their own occupancy including personal property taxes, janitorial services and all utility costs.

If the space is part of a larger building, the common area maintenance charges (CAMS) will be divided among the tenants of the building, generally based upon the tenant’s square footage percentage of the overall complex. In general, the landlord will be responsible for the structural integrity of a building.

source: http://www.realtechre.com/terminology.htm

Assuming the lease (most do) provides for the roof to be the Landlord's responsibility, and as the OP COSTS include repairs and maintenance then technically yes, the tenant will have to foot the bill, but as an adjustment on NEXT YEAR'S rent as part of the increase in operating costs. The Landlord has to foot the bill to maintain the property in good commercial condition and submit an operating statement to the tenant upon request to justify the increase in additional rents.

If there are more than one tenant in the building, this expense is split up with ALL the tenants so the OP would only have to pay his proportional share.

[dr_jared88]

Originally posted by BananaFob
...

I'm sorry, I wasn't trying to make it sound like I thought you were un-knowledgeable or anything. Nor did you mention you had commercial real-estate experience. I was just stating what I have seen in a triple net lease, and how I've interrupted.

Anyhow I still stand with what I said. It obviously depends on what is written in the lease agreement, but just because most leases include the roof being the landlords responsibility, that doesn't mean they all do. I have personally seen triple net leases that state that roof replacement is the responsibility of the tenant.

[BananaFob]

Originally posted by dr_jared88


I'm sorry, I wasn't trying to make it sound like I thought you were un-knowledgeable or anything. Nor did you mention you had commercial real-estate experience. I was just stating what I have seen in a triple net lease, and how I've interrupted.

Anyhow I still stand with what I said. It obviously depends on what is written in the lease agreement, but just because most leases include the roof being the landlords responsibility, that doesn't mean they all do. I have personally seen triple net leases that state that roof replacement is the responsibility of the tenant.

Lol no worries. Yes, I have seen triple net leases that state all sorts of wacky bullshit as well. But I'd say 95% of leases will have the landlord footing the bill upfront and charging out the increase over next year's additional rent.