Like a good neighbor...

[Mark Weinmann]

So I own a 2 sets of duplexes each with its on driveway. Across from it is another four unit building with four garages beneath each unit. I own everything from the driveways to the backyards and the other owner owns the whole parking lot and behind the building. This parking lot also has about 6 guests parking spots as well...Now the dilemma--this whole parking area is covered in potholes and needs to be paved badly. The other owner wants me to go 50/50 with him to have the lot paved and although he lets two of my tenants use two of his guests parking I don't own any of the parking area. So I'm trying to figure the best way to handle this. I don't have the money currently to pay half, but it would be more to his benefit than mine. Any ideas would be helpful😁 

[Bram Spiero]

Offer to pay for 20%.

[Charlie MacPherson]

@Mark Weinmann I don't know why you would pay to improve a property that you don't own, unless he grants you an easement for tenants to park there.  In that case, you could theoretically charge more rent for the parking.

Are there no other parking spaces for your tenants?  On street?  

If there are alternatives, there's no real benefit to you.

[Deanna McCormick]

calculate the sq footage of the area,, and then you'd know what might be fair.

so obviously, his area might be used for turn around,, backing in and out.. ??

But you don't necessarily need it for parking,, it's a convenience but not a formal easement. 

The only way you'd be able to expense the repair costs is if the service co billed you directly for a portion of the repair and you in turn rented 2 spaces from the other owner.

He probably also does the snow removal for his entire area.

lots to consider.. what's it worth to you to keep the use going forward.

We had a similar situation, shared drive,, between a 6 plex and neighbors 4 plex,, skinny driveway lot line was like 60 / 40 and only 9 feet wide.. so when it came to repairs,, we finally agreed to split the portion just as that,, we each paid the contractor separate and met him with cashiers checks day of service.. so a lien could not have been put on for unpaid services.  We had to get the city to condemn the driveway before neighbor would agree to any type of split payment,, and of course attorney fee's were involved.  

[Todd Dexheimer]

Tell him no thank you. Is it necessary for you to use his space? If not, why pay? 

[Francesco G.]

Half may be too much. Offer less and see what he says. I had a similar situation where my fourplex was next to another. I had my own driveway but there was one between the houses that was theirs and my tenants would use it to access mine some times. I offered to pay for half the cost to resurface only the middle so my tenants could continue using it. He was happy and my tenants were. We got along nicely and this year they offered me their fourplex below market and I purchased it. Now I own both fourplexes. Think strategically and it may work out on your favor.

[Account Closed]

Do you have anywhere else your tenants may park? Since your tenants are parking there, I think it's fair that he asks for compensation; however, 50% may be too much. If you can find other places for your tenants to park, I don't see why you should have to pay since it's not your property. However, if you are using the property, it makes sense he's asking for compensation...but perhaps you can just explain your financial situation and offer to pay less than the 50%, and just pay what you can.

[Mark Weinmann]

I wish I was able to post a picture to give a better idea but yes my tenants would either have to park in the driveway or on the street if not in the parking lot. He's a pretty nice owner we talk frequently but I just didn't want to get "burned" in this situation agreeing to anything. He mentioned he didn't want to pay to get the parking lot paved and not my driveways as it wouldn't look as nice(which I don't mind) but I agree it's better to have all areas nice and paved for a much better look. If offered him let's say 30% of the cost should I have something in contract?

[Thomas S.]

I would agree to pay half the cost for someone to come and patch the holes.

[Deanna McCormick]

Lets say you agree to do a portion of the cost.. down the road something happens your tenant's car leaks oil all over his new pavement,, or dispute..between tenants and things are not so great.. And the nice neighbor is angry doens't want your tenants or cars on his lot period.. and you just cut him a check for 3 grand and now have nothing... but he has a nice lot you just help pay to fix... or if he sells what's between you and him is over...

I'd make a long term arrangement with him for a long term lease on 2 parking spots,, you assign them to 2 of your tenants so they know where to park... he gets income, you pay for 50% of 50% of the paving job,  he gives you a lease and the fees you are going to pay him over the next 4 years.. more than make up for the other 25% of the cost of the paving but your spreading it out over 4 years.. so basically your agreeing to pay half..