All Forum Posts by: Bobby Kolev

Hmm, maybe local appraisal district is better than I give them credit for.
In the past 7 years of me owning the property their valuation always has been a function of how full the property is.
That is, on the face-to-face meeting, not on the standard forms they send to everyone.

Thank you for taking the time to answer, but I don't think I'll follow that advice.

If your building is empty and you're considering half-rent for a month-to-month temporary lease the last thing you'd want to do is spend $3k deposit or whatever they take ($3k is what the attorney suing a tenant who left in a middle of a 5 year lease takes).

If it was a multi-year lease I'd be the first to give fair chunk of it to an attorney to make sure the money are protected.

When there's hardly any money at all and the whole thing is more of a chance to get a paying tenant than an actually paying tenant then I just don't see attorney's fees being justified.
Just my 2c, do not mean to disrespect or argue.

Thank you for your input.

Perhaps I wasn't clear in my posting.

I know most of the risks associated with cutting off rent in regards to tenants. 

It isn't much of a factor here as there is only one other tenant left in the building (beside myself) and they are on the brinks as well; all others were crushed by COVID.

Sure enough there's also plenty more available spaces in other buildings in the area too.

But that's not my major concern as the building is paid off and I do not have banks breathing down my neck. 
I just bought it cash.

My concern is with the appraisal office and how they'd look at me saying I've leased half the space for half the money if it comes to that.

There are two parts of this:
For one, the building is a standalone one in the middle of a road connecting two more or less "retail" corners, each at least two miles away. But there's no retail corner right here and there's no foot traffic...it's not a good retail location, but the 5 mile radius *is* a decent retail location.
Over the years that has created a discrepancy between the rent here and either of those two places; this building just can not generate the same revenue as 20-40 shops packed together with a few major names among them.
So year after year I argue with the appraisal district and they just don't care.
Which is why I am even less thrilled by having to explain to them that I am renting at HALF the price I'd otherwise get.
(or renting half the space, the same thing)

And second, I wonder if I could possibly avoid having to explain all that if I let that tenant at 50% off month-to-month until December and then decide if I let them out or if they can pay normal price.
My idea is that appraisal office asks each year if I had a tenant in place as of January 1st.
So if I let them go in December I may not have to explain anything to begin with as the suite would be empty and not included in the appraisal as generating revenue (even though it would have done so in the prior year).

It is not my goal to be cheating the appraisal district.

It is my goal to try and make some revenue with potential to normal levels while avoiding headaches, specifically with the appraisal office, such as having to pay tax at market prices when I am actually leasing at 50% off.

My question is if you've been in similar situation and how was your experience - in regards to the appraisal office and taxation and less in regards to the tenants. On a month-to-month basis with clearly spelled benefits in the lease I have little to fear there.

Hi everyone, looking for your thoughts on a subject I am sure many small retail landlord are pondering one form or another.

I consider allowing a tenant in on a month-to-month basis from April til December at 50% normal retail price as they need less than 50% of the space available though if the business picks up they will definitely utilize the other half as well (and get to normal rent, of course).

Being month-to-month and with minimal changes/investment required I keep the option to showcase to other candidates and switch them on the fly if a better candidate shows up.

My concerns are less with the tenant than with the appraisal and tax office. My thinking is that for the current year the suite will be counted as empty as it was empty on 1/1/2021. If the tenant does not agree to substantial lease increase in December then the space can again be empty at 1/1/2022.

What are your thoughts on the pros and cons of short term leasing at 50% discount and specifically appraisal/tax implications of such a move?

> 1. add a concrete sealing solution to enclose all open pores

> 2. Cover foundation with membrane as an extra moisture barrier

> 3. install a French drain.

Color me skeptical, but by the time you're done with all this this is no longer investment property, this is your biggest financial drain ever.

I am not saying you should not do it; what I say is that it is a very bad investment as far as investment goes.

Only situation where just a major upgrade is financially justified is if you're going to be living in this for a long time.

Just my 2c.

Hope I've found the right forums and asking the right question.

First time owner of small retail strip. Been an owner for 4-5 years, learned quite a few things already, among which is that a commercial kitchen is not something to be made or modified lightly - it has to be properly designed and properly made in order to function well.

So I have this retail store of about 1100 sqft that someone wants to take for a small coffee shop with the ability to bake.
My question is where do I start searching for someone to design/compute small walk-in cooler, grease trap, vent-a-hood, stove and HVAC on top of that so all this could become useable without anyone getting burned.

From my past experience I have local mexican crews who can do any and all of the listed things and they'd do them relatively well except they won;t ever be designed to actually work well together.

On the other end of the spectrum I've worked with american general contractors and they tend to cost 2-3 times the Mexican crews and, at least in my case, ended up delivering about same end result (in all fairness it was only kitchen remodeling, not design from ground up; but statement stands valid and I was able to later do almost the same at literally third of the cost).

Your expertise is appreciated.