If you have a business and rent a location where your business operates, there may be no important documents for your business than your rent. If you plan to sell your business, rent is one of the first documents to see the buyer. When there was a dispute for landlords, the first place of each party would go was looking at the rent.
If your rent will expire, you might have many questions and decisions. If your business is performing well, you may need a larger location. If your business struggles, you might need a smaller location. It’s always possible you won’t be able to update your rent because your landlord also has a choice.
To help put a little balance in your rent so you can stay focused on what you need to do, namely running your business, consider having a “repair and reduction” clause added to your rent.
“Provision of repairs and reduction” allows you to repair the hole on the roof that leaks when it rains on your inventory, repairing a copical equipment such as AC, fire security system, lift or elevator and more.
For any reason, there seems to be a problem in your building will occur when landlords go on vacation or the main decision maker is slow to respond. Whatever the reason, you need repair work done and done quickly so what are your choices?
Pay for your own improvement? Not a good choice as it has money backup sitting. In addition, it is the responsibility of landlords so it’s not a good choice
Talk to another tenant and develop a collective solution? Again, not a good choice because no one has time to meet, discuss and reach consensus. In addition, it is not the responsibility of tenants and no fees.
Cancel rent and move to another location. Again, not a good choice because of time and money constraints.
Demand landlord for non performance? It is still not a good choice because this process is too slow, too expensive and does not discuss the problem.
Hold the next lease payment from the landlord by putting it into the Escrow fund. With money in Escrow funds, get offers to make repairs and then use a receipt to pay the work done.
Option 5 is a way to go because the work is done, the cost is understood and managed, the least amount of time will be wasted and the contractor who does the work is paid through the Escrow process so they are protected and happy.
Can it frustrated the landlord? Right. Security is carefully documented what happened and why it was clear what was done for what reason and to show how a little downside was in the landlord.
“Preliminary repairs and subtract” allow you, tenants, to solve problems that can distract you from running your business and therefore destroys it. It is very important to document problems carefully and have photos that support so that there are no misunderstandings and negative results.
Andrew is a business owner of 5 times that helps entrepreneurs out or enter business ownership. The service includes helping owners sell and / or buyers to buy existing businesses or consult about buying franchises. He also provides machine assessment and certified equipment and business assessment.