Potential studio and the headaches

[The StabbinCabin]

I need advice-

Pretty much there is a turn key 2400 sqft studio (without equipment) here for rent for a very fair price. However the electrical is not up to fire code and is set up to a breaker where amperage isn't matched up and is a potential fire hazard. And everything for some lame reason is all on two breakers- although that can be managed. That being said, this problem with the wiring being done with residential jacketing instead of commercial grade with the appropriate gauge wire- the two A/C units are not functional as a result and the outlets are sensitive.

I was told the previous tenant would be out by the 1st of this month and he dragged his feet and set us all back a week. I was told by the owner that they would have the electrical fixed after the old tenant left. Well today I got a call from the owner's son, who has been handling this for the most part, and was informed that their go-to electrical guy quoted them at about 3-4k to redo the electrical. To which he followed up by telling me that it isn't worth it to them to fix the building and make it California legal and I can either rent from them and come out of pocket to to the improvements myself, or I can kick rocks. Essentially the place will remain empty or they will spend a lot of money to tear it all town- way more than the electrical.

There are going to be two other guys going into this with me- so there will be a lot of power being drawn. One of my partners who will be renting with me is a licensed contractor, and we have the ability to fix this ourselves pretty easily and for way less than 3k. I returned their call and offered to trade parts and labor for rent- essentially back-charging as rent reduction or something. But before I could even finish my sentence, I was cut off and told they weren't interested in doing that.

I'm kind of stuck. It's in both our best interest to get this done because I need a place to work and they need a tenant for the building. But I won't be able to back my renters insurance unless the building is up to code. I think it's kind of a load of crap that they expect me to pay a deposit along with tenant improvements to their building for me to even make it work for what I need. Even if they know I'm willing to make a long term commitment. If it's their building, it's their responsibility, right?

I'm on the fence with this because not only is this a great deal (if working properly) but I have clients booked relatively soon as well. So I guess I wanted to ask advice to you guys who are currently renting and what you think I could possibly do to come to some sort of compromise or if I should just deal with what's wrong with it and fix it myself. Besides cosmetics/acoustics/ties, did you guys have to shell out for stuff like that? Or do you think I should be persistent on the A/C and electrical being fixed and all that? Or should I look elsewhere? I wish these guys wren't being so cheap about this.

Paperwork is all filled out, it just needs to be submitted. I really want this- but I don't think the terms and conditions are fair or safe.

Thanks for taking the time to read this

Here's a picture of the live room if interested, to just kind of put it in perspective. It's actually a pretty nice setup.

 

[Mago]

Yeah it's totally fucked that you have to invest for them. I guess it depends on how keen you are on the place.

If they aren't in a hurry to get the place rented and can wait for someone who's willed to crap out, then you're fucked.

 

[AD Chaos]

Based on what you're saying, sounds like they do have the money to make the repair themselves, they just want you to shell out for it, which shouldn't be the case.

If you want an opinion, if the cost of rewiring is going to be divided in between the 3 of you, plus you guys can take care of it yourselves for much less, I'd say swallow pride and go for it. The only real con is that it would likely set a bad precedent for future repairs/claims and dealings with the landlord. If you do, don't let them know you guys are the handyman for the repair, or they're going to think of you as such from then on.

I'd say have the repair and maintenance conditions very clear on paper, and be very blunt and firm in letting them know this repair job (on your dime) is going to be a one-time concession, and that any future maintenance or repair job must be paid by them as landlords. If they say no then perhaps better just walk out.

Sounds like getting legal advice (and letting them know you asked for it) would be a good idea.

 

[JeffTD]

If it's not up to code then they can't legally rent it out - are you telling me they'd rather see it vacant or tear it down than spend 3-4k to have a tenant in there? The fuck is going on?

 

[Nebulous]

1. If a contract has been signed, take the matter further to get what you're entitled to.
2. If nothing has been signed, cut your losses and find a better place with a better owner. It sounds like they will be shit to deal with in the long term no matter how this issue is resolved.

 

[The StabbinCabin]

My partner says that we can do the job for under 2k- I offered to have that done and just credited into our rent but apparently they would rather have it vacant and then demolish and remodel it for 15-20k instead of giving me like 6-8 weeks off my proposed rent, which I think is more than fair. It gets me in, gets them a renter in a lease and gets the building up to code.

I haven't signed the contract and had a verbal agreement with the owner that I wouldn't submit anything until they took care of the electrical. But they call me asking why I haven't turned anything in... They've had people claim to be interested, but nobody is serious about it- which that's why they're putting pressure on me because I'm the only one that has follwed up thus far. Even if anyone else looks at it, the same issue would be brought up. And the likelyhood that an engineer in Sacramento that is also a general contractor is pretty slim. So they'd have to shell out an additional 3k to move in. Knock on wood. It's all wacky.

 

[The StabbinCabin]

And I agree on them being a pain to deal with if future problems arise. Places and opportunities like this, especially here, come by probably once every two lifetimes hahaha

 

[Nebulous]

Option 3. Move in, then call the authorities and get them to fix it under law....

 

[JeffTD]

If they're willing to demo the place now because they don't want to fix the issue then they'll have zero problem with charging him rent for a while before he calls the cops, and then evicting him (only requires 90 days notice) and demolishing the place because it's not up to code.

 

[AD Chaos]

I don't understand, was the previous tenant running a business in there with inadequate (residential) wiring? I guess it then comes down to whether the building is declared (for taxes and such) as commercial, or residential..

I guess you could still discuss some amicable middle ground with the owner? If they still say no, call their bluff and let them demolish the thing..

 

[Mago]

If they're willing to demo the place now because they don't want to fix the issue then they'll have zero problem with charging him rent for a while before he calls the cops, and then evicting him (only requires 90 days notice) and demolishing the place because it's not up to code.

If he ends up moving in he'd really need to have a solid contract that avoids those kind of things. I don't know how things are in california, but here we have quite a few rights as tenants. Not even sure if they'd be able to rent the place if it was in that kind of shape around here.
All seems reaaaaally kinda fishy to me.
Really depends on how keen you are on the place and your gut feeling.

 

[Trevoire520]

Sounds like these guys are cunts. Avoid.

 

[The StabbinCabin]

They're fixing the electrical. Owner's son was handling this and didn't really know what he was doing. Since the owner got involved again everything seems fine now so far. Just a little stressed because I'm booked pretty soon and need to get in asap. I'll bump if anything else comes up. Hopefully it will be in the Studio Pics 2014 thread. Thanks for the advice guys.

 

[narcossintese]

I agree with your partner. I had to install new wires and remake all wall outlets on my studio and it was dirty cheap and got everything done in just one day with the help of a couple of friends. In my case we didn't had to break any wall as the new wires replaced the old ones, which seems to be your case as well. I can't think of any reason for them to charge you that much.