Forums / Property Investing / Commercial Property / I cant operate my business as the real estate won’t make repairs

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  • Profile photo of simon77simon77
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    @simon77
    Join Date: 2011
    Post Count: 3

    I have a small venue that i’m leasing from a local real estate however i cant open my doors to the public as the real estate wont fix the premises. Due to this i’m loosing money as i cant allow people in to the premises i have had to cancel booking.
    so when it comes time to pay the rent if i cant operate i can’t make money so it would be very hard to pay the rent.
    what do i do

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,847

    What does the lease say with regards to repairs and maintenance? Is it part of your fitout obligations or the landlord's structure? Which state? Is it retail premises, commercial, industrial or residential?

    Profile photo of simon77simon77
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    @simon77
    Join Date: 2011
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    its not to do with the lease it about the real estate not allowing us to leave a gate open for fire safety as the switch it not working and was meant to be fixed by the real estate.

    we have spoken to there on many or occasions with them telling us it will be fixed and then when the day comes its still not fixed.
    they are already in remedy to breach this will just add to it i guess

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
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    A gate is not a fire exit. Put your issue to the agent in writing & to your insurer. If there is a risk, you have taken the risk away from yourself by notifying the agent to repair and the insurer has a copy of the letter as well. Tellling the agent is one thing, putting it in writing you have a record which will stand up if queried by the coroner.

    Profile photo of simon77simon77
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    @simon77
    Join Date: 2011
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    hi
    Thanks for your thoughts.

    when we first opened the doors the fire inspector informed us that a brake glass switch was needed on the gate as the fire stairs go down in to a secured car park this was done to allow us to open then the switch was broken and the real estate had it disabled.(by doing this we could not operate as it was a fire safety issue i have then sent and email requesting to allow us to pin the gate open for the hours of operation only and he replied stated

    QUOTE:
    “The item that was damaged will be replaced today. The gate works fine, it has been extensively tested. I am not prepared to leave the gate open with the resultant security risk. I will increase the security including the relocation of a security camera, additional lighting and more security patrols. I see no problem with emergency exiting your tenancy. A gate left open is an invitation to enter the property, I do not agree to let that happen.”

    however this as still not been fixed and the fire inspector said it must have the switch working to operate our business

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,847

    If you have a copy of the inspector's report or the condition on the DA/CC which requires the gate to form part of the path of egress, then write, use the fax/mail not email, as it must be a proper notification. It has to operate 24/7 ie when the premises is occupied.

    As you have the undertaking from the agent, include a copy of this in your correspondence back to the agent & your insurer.

    Profile photo of orksorks
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    @orks
    Join Date: 2010
    Post Count: 9

    What is a real estate?

    Profile photo of IP FreelyIP Freely
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    @ip-freely
    Join Date: 2008
    Post Count: 353

    in this instance, he means the agent (a Qld term).

    Profile photo of M.InvestigatorM.Investigator
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    @m.investigator
    Join Date: 2012
    Post Count: 134

    Leasing business typically hosts various types of issues and one of them is the repair responsibility. Before commencement of lease, the contract should explicitly define who is responsible for the repairs of the property to avoid misunderstanding in the future. Keep in mind that the issue is not who pays but who is responsible for the repairs.  This is more of accountability issue. Hope you can settle this the soonest. Thanks

    Profile photo of ducksterduckster
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    @duckster
    Join Date: 2004
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    Wonder if a chat to your solicitor about the possibility of claiming financial loss to your business due to the switch not being fixed by the date promised would be worth checking out. Maybe getting the date for fixing it in writing from the real estate agent.

    Profile photo of thecrestthecrest
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    @thecrest
    Join Date: 2004
    Post Count: 990

    How much cost to fix the switch is preventing you from operating your business ?

    Compare this to how much you think you are losing per week.

    Remember, it's hard in most cases to prove the actual $ extent of loss without long term historic figures.

    How can you prove exactly how many customers would've walked in your door and how much they would've spent if it's a new business ? So perhaps if it's affordable, you should mitigate the loss, pay for the switch to be repaired, and get on with your business. Then perhaps you could show what your loss was while recouping the repair cost from the real estate and have some income do  it with. .

    Good luck, hope it's a great success.

    Cheers

    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
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    selling motels in NSW

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