Can we get our tenants to pay for the cost of new canopies/signs? Leases do not address this.

These premises are located within a condo mix/use building. The Board owns the retail spaces. The canopies are old and outdated. The leases are silent on this matter. And are we able to implement the cost when the leases are still in effect? Please comment.
In Leasing Property - Asked by Jade O. - Feb 5, 2011
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Answer(s)

Rob B.
Chandler, AZ

Jade....This is a question for your association attorney to answer. However, I believe you should prepare to show the benefits that this new look will bring to the tenants. You should present them with pictures of the center with and without the new canopies, with costs; and what each tenant's proportionate share will be. Personally, I believe your best agreement will come on this if you agree to either share in the costs or allow the tenants to pay over an extended period of time. Indeed this may be categorized a capital improvement costs and many leases if allowing the pass through of capital improvements, call for the reimbursement to be over the anticipated depreciation life of the improvement. Again, get legal counsel on this before proceeding if you expect the tenants to pay any part of the cost. Good luck Jade.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Feb 6, 2011
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Jade O.
Broker/Agent
Calgary, AB

Rob, Thank you so much for your detailed answer. Apparently, oldest AND wisest...

Feb 15, 2011
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