All Forum Posts by: Bharath Raj

I set up a office building on innago to collect rent, but realized only later than I am unable to collect a larger rent in one payment. The rent for this space is ~$7300. Innago offered setting up 2 partial payments every month. However, this has several drawbacks for me. Are there any free rent collection softwares that will let me collect this sum all in one payment? 

Thanks,

@Chris K. That' a great point. The cost of replacing the 15 ton unit is 17 k in my area. The repairs on it was ~7 k in 2018 based on the T 12. So, I will replace it just based upon that information. However, it doesn't look like I can expect a significant saving in my utility bill. Is there any simple test that can be done to figure out if the glazing needs to be redone?

@Seth Borman The HVAC contractor told me that when they start going 16 SEER and higher, the cost of repairs and maintenance increases significantly. I am still inclined to do the 16 SEER at least. 

@Adam Johnson You are so right. The roofing contractor recommended aluminium paint + maintenance contract to lower my utility bill. 

@Kelvin Tam I am definitely doing the LED lights. It helped me lower bills on a existing project. 

I am under contract to buy a ~4700 sq ft office space in a great location near Houston. The building' exterior is mostly glass (single storey). The inspection report noted the 15 ton HVAC unit to be in very poor condition. The other 5 ton HVAC is in fair/poor condition. I am wanting to improve the energy efficiency of the building. The electricity bill in the T12 has averaged ~$700/month. The tenant has a full service gross lease. So, it' in my best interest to cut the cost of utilities where I can. I read several articles regarding achieving these, but was wondering what you guys would advise as the priorities. Is it expensive to hire a company to do energy audits in a space as small as mine?

@rob  

@Rob Mackowski they have been clear from the very beginning that they were willing to sign only a 3 year initial term

@Damon DiPlacido

Thanks

@Kevin Sellers

@Michael Hall

Thanks for the feedback. It calmed my nerves. I wanted to move forward, but couldn’t tell if what they were asking was reasonable or not. All your constructive suggestions were invaluable

@Ronald Rohde it's a NNN lease, but controllable expenses are capped at no more than 5% increase annually. The rents currently increase automatically by about 2.5% annually.

Our brokers negotiated a commercial office lease with a national tenant in the LOI. A draft of the lease was drawn and the contract was prepared by my attorney. The tenant' attorney reviewed it and sent it back with several edits. The original agreement was to let the tenant have a 3 year lease with one additional 3 year option at the market rate at the time. However, the tenant' attorney now wants to fix the rent for the optional 3 years right now. This property has been difficult to lease so far. I am inclined to work with this tenant, but I do feel like I don't want to get into a second round of negotiations. Is there a rule of thumb that can be used, ex: a 10% increase in base rents for year 4 when compared to year 1 rents, and then 3% subsequent increases for years 5 and 6? Any guidance would be greatly appreciated

I am under contract to buy a 4650 sq ft office building near Houston. The building was built in the early 1980s. The roof is a flat bituminous one (original). The general inspector reported more serious concerns with the roof than the roof inspector did. The roof inspector thinks that it may have another 4 to 6 years of life left on it. There have been recent leaks, as reported by a tenant, requiring change of ceiling tiles. There are 2 HVAC units, one of them being a 15 ton, and the second a 4 ton. The HVAC inspector marked both of them as being in poor condition. The seller' financials have regular HVAC repairs on them. These units are on the roof top. The heating was not cited. The HVAC replacement cost would run ~25 k (for both units + limited ductwork), per the contractor. I don't have the full report from the roof inspector yet. The insurance company is asking to see this report to commit. I am looking for strategies to renegotiate the contract in light of new information. I would appreciate your inputs. 

I am reviewing a listing agreement from a broker to list a medical office space in Houston. The broker' asking fee is 6%. If that excessive? I do understand that it' negotiable, but I was wondering how we can get the going rate.