Lease question

[Lizi]

We leased our building with a 3 year lease which will be up in September of this year. At that time we will still down with the land lord and negotiate new terms. A few months ago he came by to see how things were going and told us that he didn't think he would go up on anyone's rent since the economy has been so slow and he's had one building that sat empty of 10 months, 2 others that sat empty of 6 months. Said he was just happy to have someone in the others and hoped to keep them.

The building we are in used to be one large building that was rented by a chiropractor, when his business fell off he asked the land lord to split the building and he did, he put a wall down the center of the building and cut a new doorway for the other side. We each have our own heat and air.

Our lease is all inclusive, power and water is included. We work anywhere from 60 to 80 hours a week. The Chiropractor works 21 hours a week. His lease is coming up for renewal in April, he is already complaining about the rent being too high and wants a reduction. He has convinced the land lord that we are pulling more power than him and that he needs his own power meeter. "Yes" we pull more power, more hours, more power. Any way, this is what it is coming down to. In order to keep the Dr., and lower his rent all the wiring will be pulled and split in order for each of us to have our own meters. Quite an intensive amount of work, might have to be closed for a week. Of course this mean we will have to come up with a large deposit for the power when they keep until we leave the building which we had thought would be years. I am really frustrated that the land lord is doing all of this just to keep a tenant that he is constantly having to do repairs for. We haven't asked for anything since we have been here and did all of the work to the building before we moved in, all paid for from our own pocket. We have worked hard to build our customer base and really do not want to look for anywhere else. The ticker is, our rent would stay the same, with the increase power bill expenses until September and then we could renegotiate a new deal. To me it is if the land lord is breaking the lease. He is a super nice guy and sometimes get talked into things by the tenants. I don't want any tension between us but feel we are going to get the shaft here. Trying to figure out how to handle this and talk to him about it. Any thoughts or advise?

 

[bootcampguy]

Your lease should stay the way it is until the end of your lease. The Dr. problems are not yours, but his do effect your outcome. I would just tell the LL that you want to stay as is until you have in writing all the costs, closing (you will miss out big) etc.

 

[Doug Munro]

I tend to agree with Bootcampguy. The bottom line is a lease is in place to protect "both parties" during its term.

AS well when you renew, negotiate hard (nice guy or not), every penny you save is a penny in your pocket and quite frankly you sound like a great tenant, the kind a landlord wants to keep. Good luck

 

[Rhonda]

I thought you said power was inclusive as in the landlord pays the power? If that is what the Dr. wants his rent adjusted for, then the landlord should pay the expense of the rewiring #1 and to not interfere with your daily business - at least until your lease is due to renegotiate.

 

[Kristine]

As for being closed during the electrical event. We have electrical contractors who work NIGHTS or week ends, doing those kinds of jobs so they are not interrupting business.

 

[Lizi]

Rhonda, the land lord will pay the expense of the wiring. My problem is now we will have to come up with a huge deposit with the power company with our rent staying the same.

 

[Lizi]

Kristine, yea and here they charge more for weekend hours. The land lord was discussing that with the electrition today. One problem is the drop down to the attic is in my design area.

 

[Clarabella]

Honestly, I would tell the landlord flat out that if he proceeds with that plan you will not be renewing your lease. Also remind him that until the current lease expires, you will not agree to any changes, nor will you allow him to cut off power to your shop causing you to close. Sounds like you need to take a page out of the chiropractors play book here. If he is freaking out about losing the chiropractor, he will freak out just as much about losing you. In the mean time I would at least start looking at what else is out there. Moving would be a last choice, but sometimes you have to do what you have to do....

 

[Floral Pride]

If the power is included in your rent I would tell the landlord no way to variations, but just suggest the chiropractor could maybe have a reduction in his rent, this would work out cheaper than having a full rewire and new meters installing.
Also even though the chiropractor only works half of your hours, I would assume that he would use almost the same amount of power as you because every chiropractor I have used has always had the heating on full blast in winter and aircon on in summer, whereas we tend to leave the heating off.
I also echo Clarabella in telling him that the expense incurred is too much for you and you will have to have a considered think about renewing your lease. No way would I close my shop for anyone without good recompense.

 

[secretgarden]

If you end up needing that deposit for electric see if they will split it up. They did that for us. We payed 3 installments on our "deposit" over 3 months. We got all of that back in 1 year because we had payed the bill on time. Sometimes the company has less than 1 year payback it just depends on the company. Hope this helps. For the record, I am with everyone else. You have a lease your landlord should honor that until it is up. Maybe he could reduce the chiropractor until the lease is up for you and you could all work something out.

 

[Kristine]

in our hood, we paid rent/lease price by the amount of square footage of our space. Seems to me the Chiropractor needs to move to a small space if he cant afford the rent or work harder to increase his business. It's not yours or the landlords fault he only works 21 hours a week. maybe he needs to find another partner to help share expenses.

Did the landlord state that when he splits the power you would be responsible for the payment of such? If so then the rent should decrease by that amount.. good luck

 

[shannonlovesflowers]

Well- I think the landlord is rather stupid.

The simplest way to make everyone happy is figure out a cap for the utilities that the Chiropractor is using.


You guys are obviously using more energy- Why should he have to pay your bills? But The Chiropractor seems stupid as well- Doesn't he realize he's going to have to pay a big deposit as well?


I think before you agree to all this illogical behavior- why don't you ask for a meeting with you and the Landlord and the Chiropractor and work something out where you all are happy?

 

[BOSS]

IF the electric splits between the businesses (no common lines, plugs, etc) any competent electrician should be able to figure out which lines go to which business, put AMP Meters on them and divide the usage equitably between the two businesses based on hours of operation.

Likely the Quackapractor realizes he's paying for a months worth of juice and not using his share. I realize that you're likely to get a bigger bill, but like you said, you use more...

 

[Lizi]

One of the things with the wiring is that it has been added to by most of the tenants to fit their needs. One outlet for our back room is on the same line as an outlet completely across the building. For example, our heat and air ducts at the front of our shop are on the chiropractors vent system. The building was built in the 70's so lots of wiring projects since then. And, yes if it's split we are responsible for deposit and monthly bills. And I also think my rent should be reduce by that amount. And no offense, the electrician looks like he would work for a case of beer which he would drink while working.

 

[BloomingFlorida]

Honestly, I would tell the landlord flat out that if he proceeds with that plan you will not be renewing your lease. Also remind him that until the current lease expires, you will not agree to any changes, nor will you allow him to cut off power to your shop causing you to close. Sounds like you need to take a page out of the chiropractors play book here. If he is freaking out about losing the chiropractor, he will freak out just as much about losing you. In the mean time I would at least start looking at what else is out there. Moving would be a last choice, but sometimes you have to do what you have to do....

I agree completely, and would add that if the LL proceeds with the change-over before September, he will need to a) pay the utility deposit (which he can then charge you for in Sept when time for you to renew) b) your rent stays exactly where it is from now through the end your lease, and he pays the electric c) for each week of down-time for the work, you don't pay 1 month's rent, or equivalent to your last year's income for the time you are shut down. In any case, if he proceeds, he will be breaking your lease, and all bets are off. You need to make him aware of that. One option is for the chiro to go to a month-to-month from the end of his lease until the end of your lease. At that time, both parties can enter into new leases, which can reflect the electrical change-over. If you all do that, and come to terms early enough, you can ask to have the work done during the slowest time in the summer (for you), and take a vacation.

 

[Lizi]

So now I'm really wondering what's going on. Yesterday the electricians came by to look again. They were telling my husband that the Dr. has decided to install some more machines and the the breaker box was already full so they would have to install another one probably on his side of the building. Needs several with 220. We haven't seen or heard anything from our landlord sine that first week. I did voice my concerns over the power deposit at that time. So is my landlord being truthful, is he the one that wants the power divided out so he's not the one paying and loosing more money from the rent?

 

[Lizi]

Good news for us. The Landlord has decided that the wiring will stay as is. If the Dr. needs additional wiring he can do it and pay for it himself, no cut in rent either. So we're good to go. What a relief. Thank for all of the feedback.