Let's talk good landlord interactions

[ryanwanner]

Hello all!

For this week's Question of the Week, I'd like to discuss landlords. We all have our horror stories for sure, but I'm interested in what things your landlord has done that actually helped your business.

Was it a reduction in rent due to an unexpected expense? Perhaps assistance with a repair that would normally be covered by you?

For me, it would have to be during the heart of the pandemic. My landlord was willing to take partial payments for rent based off of income until the strictest regulations were relaxed. It made my life a little more bearable during an otherwise crazy time in my business.

[Candlestore]

@ryanwanner ;

My landlord gave me a Pass since we were not allowed to Operate for 3 months.  So since the landlord knew we could not have customers and no source of income, they were able to help me out that way.  Then again they use to own the business before selling it to me not even a year earlier.   Bad timing for buying a business for me, was not in the plans that the government (state) would force businesses to close for months because of a virus.  

[ryanwanner]

That's great that your landlord worked with you. I've heard way too many stories where that didn't happen through the pandemic.

[DinaLRosenberg]

that's really awesome- mine did NOT offer that LOLOL I wish.

[doc_choc]

We have had some really great landlords, for shops and production factories over the years. I think we may have been lucky, never any problems. Always very understanding and supporting of factors affecting our business during Covid and even now with the current economic challenges presented to businesses. In my opinion they currently have the right approach to its better to help my tenants than have no tenants whether that be rent holidays or freezes on rent increases. This may change should the market conditions improve, but with the current shockwaves I fear this may not be for many years to come 😥

[ryanwanner]

@doc_chocJealous. Aside from my example, I have had the worst luck with landlords over the years. 

[doc_choc]

@ryanwanner I hear some can be really difficult to deal with. I would say if you are dealing with the bigger landlords of mall's and shopping centres they can really be difficult as they are so used to working with big brands who have an army of people to sort shop fit out, legal stuff, etc. who understand the expectations of the landlord and the big landlords expect you to deal within their terms and systems. Not always possible if you are a small independent. Make sure you read the small print in the contract as exiting from these kind of landlords can sometimes land you with a big bill, they have it all wrapped up in the small print. 

[ryanwanner]

@doc_choc  No major mall landlords here for me... just a few people that have no business owning commercial property. My landlord at my now closed cafe tried to pass a page and a half "lease" off as the Real Thing. When I called him on it, he stopped replying to messages. Current landlord has taken over a year to fix sewer issues on site.

[doc_choc]

@ryanwanner That's just not the way things are done, there is no excuse for ignorance, they should always be polite and respectful and respond back in a professional way, its the way things work. I wish I had a 1.5 page lease for some of our estate, some read like novels. 😂

[VanKalkerFarms]

I can't say I have had any of our landlords do anything besides take ever increasing rent money and not make improvements needed to the facility or parking etc.  Sorry but nothing great to contribute to the positive side.

[ryanwanner]

@VanKalkerFarms  the lack of responses here tells me you're not alone unfortunately.

[VanKalkerFarms]

The good thing is I am an awesome landlord to myself and spending 50-100 thousand a year on improvements on our farm/Garden Center.

[Twpchair]

No, now I definitely should be sending flowers or something a couple of times a year! After a couple of these stories, I am very grateful!

[Michael_L]

Our landlord was amazing during COVID, they reduced our rent to either $1000 minimum or a percentage of whatever we sold while any restrictions were in place.  For some companies in the building that is what saved them.

Overall they have been very accommodating with everything, I feel fortunate when I hear how many bad stories are out there.

[ryanwanner]

@Michael_LWonderful! That's basically what my landlord did. For me they did require me to pay back the balance owed, but they didn't put a date on the repayments. A little here, a little there. The flexibility was definitely appreciated.

[MudFire_Dex]

Lol...Sorry Ryan that aren't more responses. I do think positive negotiations are possible and appreciate your question.  Our landlord in the 2nd month of the pandemic said - are you going to be able to pay the rent or should I look for a buyer for the building which stressed me TF out. They did eventually allow an abatement of our promissory note on the business (I know own the business outright having paid that off) but I still rent the property. I have first buyers rights at the end of this lease and the landlord is willing to owner finance the property which is also amazing and I do pay under market rent for Atlanta but it is NNN and I have run a new water main line, all roof, HVAC, Water Heater, electrical, etc as my responsibility. I refenced the property, refreshed the paving, and reroofed the 6000 square foot building. All repairs are my responsibility. 

[Twpchair]

We have the best landlord period. He leaves us alone and we leave him alone until it comes to electrical stuff then we call the electrician. Our landlord owns one of the largest International shipping companies in the United States. He has multiple hubs in 31 states and is extremely busy. We don't ever see him but around Christmas time he gets all the ladies in the office in central Michigan a 500.00 gift card. We take care of everything around the store and take it off our lease. During COVID, he called me over to the shop and stopped all payments until we were FULLY open and not this porch pick up or 5 people at a time. That was 2 years for us. He calls here and there and always checks how the is business, is everything okay. And in August we see him again, his son is in 4H, and he buys or supports that, and he gets us half a cow and a pig as a thank-you for being so easy to work with, and he never thinks twice or worried. He has 10 big retail stores he leases and they are constantly calling him until he directed their call to the shop's maintenance or plow guy. He's just a good guy who cares and understands what it was like before he went big-time. 

[lenjobakes]

We always always always hear of horror stories but...my landlords are legit angels.

Now, I didn't get any leeway during the pandemic (they just purchased the building and getting it up to code brought them 3x over budget) but they have given me free reign to do whatever I want. I did put a lot of money into our buildout, but they never hesitated to approve whatever changes I wanted to make.

Whenever I call about anything that needs to be addressed (typically plumbing issues) they are so quick to have someone out to take a look and get it fixed. You would think this would result in a huge increase in rent when we renewed our lease in January, but in actuality, our rent increased by $50 - not at all the standard in our area.

I'm grateful to never have to worry about my landlord playing mind games or threatening huge increases or refusing to fix issues. I have decided that this will be my last lease, though! Absolutely figuring out a way to own the next place we call home. The countdown is on! Only 5 years to find the next best location 😅

[ryanwanner]

I wish you the best with purchasing your next property @lenjobakes ! That definitely seems to be the best way to do things, too bad it's so cost prohibitive up front.

[Twpchair]

It's a huge load off your shoulders. I know our neighbor has a coffee shop that is constantly having issues like plumbing, lights, and breakers blowing and they respond with I am going to send my neighbor first he's a good guy and pretty handy smh. He couldn't change a light bulb imo. We had thought about buying the store we are in now but we are in the same situation in June will be 10 years there. We don't have to do maintenance, plowing cut the grass, pay taxes, etc, and our payment hasn't gone up. We looked all over and they for leasing 2x what we pay for half the size. We were just looking to see what places were going for and decided nope. Let's just leave it alone. No, we have free range to change anything, paint, wallpaper, I changed out our front counter and moved them 2 times until I found my spot. It's nice to hear the good not just the horror stories and I do. I am getting ready to open up a 2nd store and it is all set training starts tomorrow and Monday and it's the same owner. I was talking with him and heard that the previous people were retiring and I asked him how much and he said for you how about 500.00 a month and you pick year to year lease or 5 year? It is 3 buildings down from my furniture store. I said for that price I'll do 5yrs. If it's successful huge plus if not I can use it for extra inventory. But I think it will do just fine. He said any issues call the same companies. I was supposed to move in on Feb 1st but an emergency came up and to go to Tennessee for 10 days then horrible weather he said just start the lease April 1st and get everything in order than open whenever you are ready. You couldn't ask or hope for anyone else who would do that. But in 10 years we have never been late we keep it clean and take care of it like it was ours. Less stress for him too. I am glad you have a great one! 

[BofBArtStudio]

At our main location, we own the building.  It is nice to be able to make renovation decisions completely.

For our other location, we rent.  We are responsible for everything.  It is a bit frustrating because we currently have four ACs that are all needing replacing because they are so old.  However, we have only been there for 14 months, and the lease says we are fully responsible.

At another location, the lease states that we are only responsible for the first $1000 per year for each AC unit for repair or replace.

I think this is the biggest challenge on renting.  If I owned the building, I would understand and be more accepting of replacing things like AC units or roofs.

It is a good idea, when renting, to be fully aware of what is stated in the lease and even negotiate these kind of items in the lease before agreeing to the terms.