Commercial lease - is this even legal?

[crumrw]

I signed into a lease on a new warehouse space for my business back in March of 2020. I thought it was odd that the landlord wanted a month to month lease, but whatever the location was good.

Haven’t spoke with him in months, but this week I reached out to him asking for his W9 so I could send him a 1099-NEC for the rent I paid him per my accountants instruction. He then took this as an opportunity to change things up. This is what he sent me. Is this even legal? I was given this on 1/22, and he is giving me 6 days to agree to and start paying $500 a month more. Also, I’ve never been in a lease that asked for my utilities password, and to agree that all the contents within the ship are less than $10,000 (which they far exceed).






Sent from my iPhone using Tapatalk

[RWB]

Being month to month I dont see what would be illegal. Looks like he is giving you 6 days to come to agreement on terms or 30 days to vacate. Talk to him and see if the 10K limit can be adjusted.

[crumrw]

The other issue is the lock out policy. I have an alarm at the shop, and in addition a lot of my work is under NDA. I can’t just have people come in willie nillie.


Sent from my iPhone using Tapatalk

[C.W.Ashby]

It is not illegal since you are month to month. If the terms are not acceptable, I suggest you move. Find a place that is more accommodating to your needs. They are out there. Most commercial leases ask for 5 yrs but can be negotiated down if you need but month to month means next month, the terms may change again and again. Hate to say it but it sounds like he may want you out.

[miket]

Sure doesn't seem like the right time for him to get greedy and picky. It would probably irritate me and I would move on, if possible.

[neskora]

There are plenty of other possibilities, but the timing in relation to your request to send him a 1099 makes me guess maybe he wasn’t expecting to claim the full amount on his taxes. This is the risk of doing a month to month, but it also protects you, as you should be able to give him the same notice. If it were me, I’d start looking for a new place. Owner sounds like a pain to deal with. Depending on the type of space you’re looking for, right now may be a good time to get a new deal.

[ACbob]

After all the covid business losses, I would suspect that there are better deals for you out there. I know relocating can be a big pain though.

[MAP]

Sometimes there is a reason they want it month to month. One big reason is that once you move all your stuff in, build a foundation in one spot over a few months, and become somewhat emotionally attached to the place, they use that against you and start changing the rules/rent a few times a year. They count on you paying, instead of packing up and moving.

I wouldn't be surprised if you look into the past rental history of this building, it has been available on and off for years.

[longhorn_cop]

Id bet MAP hit the nail on the head

[crumrw]

Sometimes there is a reason they want it month to month. One big reason is that once you move all your stuff in, build a foundation in one spot over a few months, and become somewhat emotionally attached to the place, they use that against you and start changing the rules/rent a few times a year. They count on you paying, instead of packing up and moving.

I wouldn't be surprised if you look into the past rental history of this building, it has been available on and off for years.

I think this is right. Though he bought the entire street about 4 months before I moved in, so there really is no history with tenancy in this building under his ownership. He has pushed back on everything I’ve ever mentioned to him. Can’t stand the guy. Problem is last week I signed an agreement on a 4 month job that kicks off this week. It’s just literally the worst timing. I feel like he’s shaking me down with my hands tied being my back.


Sent from my iPhone using Tapatalk

[crumrw]

Well if anyone knows of a 3000-5000 sf shop space for rent in the Garland area, please let me know ASAP, lol.


Sent from my iPhone using Tapatalk

[John Paul]

Legal. Never sign a month to month unless said tenant needs to for whatever reason. If landlord wants month to month he/ she is up to something, landlords like security in have a lease and the longer the better. I know a few good commercial brokers up that way, I will send you contact info for some good tenant reps.

[RifleBowPistol]

Sounds to me, he only has insurance that covers $10,000 of your property, if you have things of higher value he will have to buy more insurance and is going to make you pay for the extra insurance, is my bet, on that part.

The part of giving him your pass word for your utilities is a tell him to F off. That I would not do, the utilities are none of his business, that's between you and them. Unless he wants to contribute to your bill, tell him to get F'ed on that part.

The raising your rent by $500 is nothing new. The last building I was in, I got out of, because the owner of the building doubled the monthly price and wanted to go up twice the amount he doubled it to. I found out he talked to all of the other property owners in the area and asked them to double their rates, because he wanted to double his rates.
So I bailed on that deal. What was bad, was he lived right across the road from me, and I was friends with his son, knew him well, did work for both him and his son.

Somebody told him, that he should be charging a lot more money for all of his rental properties, so he decided that's what he was going to do.

Then the place I moved into after that place, they started off cheap, then would go up some, then up again, and again. I noticed when the owner's daughter got married, the rent went up, he hired her to work for the company, then when she had her first kid our rent went up. Then it went up again, when she had her second kid. Oh and I forgot, when he paved part of the parking lot, not anywhere near my building, my rent went up then too.
They own the property, so they can increase the rent for whatever reason they choose.

[bakin7005]

That stinks....Well if it goes south at least well be able to send ol' Jim some cat facts.

Sent from my SM-G970U using Tapatalk

[crumrw]

Legal. Never sign a month to month unless said tenant needs to for whatever reason. If landlord wants month to month he/ she is up to something, landlords like security in have a lease and the longer the better. I know a few good commercial brokers up that way, I will send you contact info for some good tenant reps.

Thank you


Sent from my iPhone using Tapatalk