Issues with Landlord

Discussion in 'The Think Tank' started by PizzaProdigy, Jun 30, 2018.

  1. CapeCodder

    CapeCodder Member

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    There's a saying about throwing good money after bad. This example is the definitive definition of that. Take the words of the Amityville horror and "GET OUT"..... There is no good thing that will happen from here on out. Take bodegahwy's advice and realize that you haven't even begun to think of all the ways he's going to continue screwing you.

    In philosophy this is a simple finite / infinite problem. You have a finite definable amount of time and money into this now. Go forward with this penny wise / pound foolish LL and you'll have an infinite more amount of expenses and/ or lessons..... I don't know about you but my supply of both is definitely finite..
     
  2. PizzaProdigy

    PizzaProdigy Member

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    The LL called my attorney asked for a meeting next week so we can discuss the matter and come to a resolution. I responded back to my lawyer the sooner the better, so he set up a Monday meeting at my attorneys office. The LL contacted my attorney not his lawyer so I do not know how to read into that.

    The thing is we had a great relationship up until the grease trap situation. He has inherited a few buildings including the one I am in from what I was told nonetheless he messes with the little guy.

    I can only assume he has someone else set up to take the space for more rent and is pushing me around. I spoke to my investors aka my Dad and Brother they told me not to give in we will fix the grease trap and deal with him in court later. I told them about the risks that Bodegahwy stated they told me they have my back financially. My old man has plenty of foodservice experience having owned pizza places and restaurants he told me no fear open it or get every penny you put into it. My Dad and my brother told me if you lose, you lose on our terms, not his.

    Bottom line they told me we get all the money we put into it or next week we hire someone for the grease trap and take him to court.

    If I was repetitive here I blame the 100 degrees weather. That's my update fellas. TC
     
  3. paul7979

    paul7979 Well-Known Member

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    The biggest worry you should have is the term of your lease and any renewals. If you signed a 5 year lease with no renewals, you can bet that if your relationship stays contentious, you will be looking for somewhere to relocate to in 5 years. If you have options to renew, you will need to exercise these exactly as the lease calls for. If you're a day late notifying him on your intent to renew, he will certainly push you out.
     
  4. bodegahwy

    bodegahwy Well-Known Member

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    Even then, if you do not have a defined rent in the option you will be looking at trying to reach agreement on what "market rent" might be which will be problematic if the LL wants you out.
     
  5. URNUTS

    URNUTS Active Member

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    If you have that kind of back-up.... good for you. If your brother and dad are behind you emotionally, financially and philosophically/strategically.... then that kind of changes things. Doesn't make going forward the necessarily wise thing to do but maybe you can make that LL feel like Caffey in A Few Good Men.... "You *&#%ed with the wrong Marine!"
    My take- still- is that exiting on your terms is the best option.
    Wishing you well.
     
  6. PizzaProdigy

    PizzaProdigy Member

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    I have a 5 year lease with (2) 5 year options. The rent increases are 2% per year.

    The LL showed up without an attorney. He told us that he had/has more credit worthy tenants and after we signed the lease he did not take the listing off loopnet for a week or so and national tenants stepped up but the lease was signed. The new tenants will pay 30% more. He feels he gave away too much and should not pay for the grease trap.

    My lawyer told him that he was not forced into a contract and the lease is now binding. He offered to pay 20k and I take my equipment and leave. I told him NO. I have more than that in the hood system, hardwood floors signage etc... My old man tagged along he was silent just listening. My Dad pulled me aside and told me let me talk to this punk.

    My old man told him if you do not pay for the grease trap we will but I will give you a solution. If you really have a tenant that is willing to pay more we want money for improvements at cost nothing above (equipment we take out) but we sublease and you and I split the premium over the rent agreed upon. He told him our personal guarantee is no longer enforceable and we have those rights for all 15 years.

    The LL was dazed for about a minute he then said that is not fair. I told him are you f**king serious you signed an agreement and you are using an excuse to weasel out. Real men honor their deals.

    There was no solution at the meeting we told him we are fixing the grease trap and will sue. He told us he will try to break the lease. Our lawyer told him as long as they abide by the lease terms you cannot break the lease.

    A few hours later he called the attorney he wanted to know if I would be willing to split the cost of the grease trap. I have not responded back. My old man insisted he come with he told me I promise I will not talk unless you are fine with it. Truth is I did not want him there because he can be hotheaded and his solution was something he did not tell me about in advance. My lawyer told me your Dad really did a number on him I should call him for advice.
     
    Last edited: Jul 17, 2018
  7. URNUTS

    URNUTS Active Member

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    This is like a rash.... won't go away (for you).
    So you are paying $8K/month, he has a tenant for $10,500/month which over 15 years is an add'l $430,000 (not including increases) to him.
    Whole thing still scares me.
    I kind of like your dad's idea.... sort of; Let him cover ALL your expenses- plus incidentals; Moving, equipment removal and storage, etc- and you remove your stuff and go elsewhere. I would not sublease w/ this guy- I'd want to be done. Not sure if that was a legit component of your dads or he was just messing w/ him.
    If his nat'l tenant at 30%+ is legit, that should be a no-brainer for him.
    Guy sounds like a real piece of work.
     
    Last edited: Jul 17, 2018
    Steve.L likes this.
  8. CarloC

    CarloC New Member

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    I think you have great support with your dad and attorney. Anything you agree to think about carefully and consult both. I would take your dad along to any meeting as your LL seems to be of the threatening/bullying/walkaway type.

    LL might be thinking, you're never gonna walk away and is just seeing how much he can squeeze out of you for the grease trap. Fighting you for every penny. I'm hoping this can turn around for you, don't stress too much.
     
  9. bodegahwy

    bodegahwy Well-Known Member

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    I agree with the idea that IF the LL has a national tenant at 30% over what you agreed to then making you whole is a no-brainer for him. He would get every nickle back within 2 years.
     
  10. URNUTS

    URNUTS Active Member

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    Curious how this ended up. Not like I don't have my own issues!