Kate has issued a warning of eviction for a certain short-term tenant at her blog Its a Reid!
I have to warn her that a judge will order the eviction, but with some rather tough conditions: the tenant be granted a new, 18-year lease with option of a 4-year renewal after that. There is no reversion of the value of improvements when the leasehold is up.
The lease is full-service, not triple-net. Tenant improvement expense is substantial and recurring. The tenant will be very noisy with wildly varying hours of operation for the first two years of occupancy. The tenant will drive significant maintenance & operations expense, as well as overhead including substantial insurance expense. And beware the capital reserve requirement for "college education." Is there a stronger word than exorbitant? Extortion?
However, federal and state tax law does provide some relief for various provisions of the leasehold for the property owner(s).
But here's the ironic rub: the tenant may, eventually, become your landlord and/or make custodial decisions for you in a remarkable reversal of roles. So it is in your best interest to be a fair and wise landlord!
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1 comment:
thats a pretty good description of a childhood
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