You are here:

Commercial Real Estate Investment/landlord invoices me for items reimbursed to me

Advertisement


Question
I received an invoice from my landlord with copies of bills that she paid from structural work on the building.  I was cosmetically renovating an older building which had been neglected for years.  While changing out lights which were not working, the ceiling caved in on us.  Fortunately, no one was seriously injured.  Once this happened, we contacted the landlord immediately.  She filed a claim with her insurance company, and they paid approx. $3000.  The electrical wiring was not up to code, and we could not install new lighting once the ceiling caved.  The landlord hired an electrician to install wiring and hang basic lighting.  The electrician quoted her $2500 for lighting.  I called her and told her that I could purchase track lighting and save her roughly $1700.  She agreed and said she would reimburse me for the lighting.  I did receive a check from her for the lighting.

The landlord and I agreed that she would have the HVAC in "imminent working condition" before November 1.  She failed to do so, and after the ceiling collapsed, she made it second priority.  Come to find out, the unit was over 30 years old and 7 different HVAC companies would not give it a clean bill of health.  She finally agreed to have a new unit put in a few weeks ago.  

Now, she has sent me a bill for the ceiling, wiring, lighting, and $500 towards the A/C.  I responded with a letter reminding her of our agreements and included copies of letters that I had sent her with receipts.  She replied stating that the lease says that the tenant is responsible for things that the insurance does not cover.  It also states though that the landlord is responsible for structural expenses.  

This last letter states that I need to add $300+ dollars to my rent check for the next year to pay this bill.  Can she really do this? Even if I have a copy of the check where she initially reimbursed me?  She is simply doing this because she has neglected to take care of the property for tens of years.  Now it has hit her all at once...she has been collecting rent for a long time, but has never spent a dime to maintain the building.  I have spent well over $10K just to improve and increase the value of her building.

Is this worth me getting an attorney?  

Answer
Shannon-

There is much I could tell you about the incidents you have detailed in your question, however, suffice it to say that your landlord has integrity and other problems.  

You should keep very detailed records and any other proof of the problems you are experiencing with your landlord and secure the services of an attorney that specializes in, "Landlord / Tenant" , law immediately.  Do not try to save money by hiring a brother-in-law or friend that specializes in divorce, criminal, or other law.  

A "L&T" legal specialist will understand each of these matters, know what to do and how to get started with this situation without any delay.   Additionally, be aware that many "real estate" attorneys are competent in Landlord / Tenant law, however, not all.   Get a real estate specialist experienced with Landlord / Tenant cases.

It is hard to tell if it is "worth" getting an attorney until the facts and evidence in the overall case are reviewed by a competent attorney.  Often "winning" your court case against your landlord does not mean the terms of the judgement will be sufficient to pay your legal fees and bring you economically even for the problems your landlord has caused you.   If you don't have the ability to pay legal fees or don't know where to find a Landlord/Tenant legal specialist, contact the closest Bar Association and ask them for their assistance.  Often the Bar Association will have attorneys willing to limit their fees to assist deserving people or others that do "Pro Bono" work; i.e.,  providing their legal services at no cost for worthy situations.

I am sorry to learn you are having such difficulty. Do not shrink from gaining an equitable result.  Best of Luck.

-Jim

Commercial Real Estate Investment

All Answers


Answers by Expert:


Ask Experts

Volunteer


Jim Avancena, CPM

Expertise

Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.

Experience

Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.

Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.

Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".

Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.

Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.

Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.

©2012 About.com, a part of The New York Times Company. All rights reserved.