Elevator, Friend or foe?

[Jeff Stein]

HI bigger pocket members!

I am slowly growing my real estate empire. I have an accepted offer in on my first multi story commercial building. It has 3 floors with offices totaling about 20,000 sqft. This will be my first building with an elevator and I want to make sure I have everything covered so I had a few questions.

1. I plan on having an inspection done and will sign a maintenance and inspection contract which covers yearly certifications. Is this smart?

2. The elevator is not currently working and there is a quote for $20,000 to replace the submersible hydraulic pump. Should I be concerned that there are a number of other issues with an older elevator?

Any other elevator advice or wisdom to pace along?

[Eric Weireter]

@Jeff Stein I have an owner that we are going through this exact issue with right now... same scenario 3 story building ~20k sf. He is getting the Submersible Power Unit replaced which includes the storage tank, oil, control valve, pump, motor & muffler for $21,389. I agree with others above that you should obtain multiple quotes. Typically you'll find that most elevator companies have technicians that are union based, so labor cost should not vary much. 

Regarding a maintenance contract, depending on the age of your elevator you may only be able to get a Oil & Grease contract as opposed to a Full-Service contract. I would advise you to make sure the contract spells out the frequency of the preventive maintenance visits. In our area, elevator companies are notorious for not doing the monthly/quarterly PMs despite what the agreement says. Also, expect to get locked into a 3-5 year contract.