Can I Limit the number of Vehicles….
Questions 1
Can I legally limit the number of vehicles a tenant can park on my rental property?
Answer 1
Landlord-tenant laws of most states do not specifically address this issue. Accordingly, a landlord may control parking in a reasonable and equitable manner. What might be considered reasonable may depend on the type of property and the available parking space.
A landlord should control parking space assignments to tenants rather than the number of vehicles a tenant may have. A landlord would not have a right to restrict parking on public property, for example, on the street in front of the property, except as restricted by the city or an home owner association. Furthermore, it may not be reasonable to limit a tenant of a SFR to one or two vehicles when there is ample parking space for six vehicles. Of course, lawns, flower beds, or patios would not be included within such parking space. Any governmental restrictions or HOA rules can be enforced by the landlord. Similarly, depending on the location, it may be reasonable and enforceable to prohibit vehicles being partially dismantled or up on blocks. There could be other issues that might concern the government and/or neighboring property owners.
As with most issues, in order to avoid misunderstandings, it is best to have parking rules well defined in the lease agreement.
Furthermore, the number of available parking spaces should be disclosed during the marketing of the vacant unit, certainly prior to lease signing, in order to avoid last minute problems. Rules should be applied in the same manner to all applicants and to all tenants.
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Question 2
I’ve been thinking about converting my 12-unit building from a single meter to individually-metered. Can anyone give me information about experience in doing this and provide an idea of the cost involved?
Answer 2
You didn’t indicate whether you were talking about electric, gas or water meters. However, in general, the same issues usually apply to any of the three.
The cost of converting from single to multiple electric meters depends on both the location of the property and how the building was wired. Similarly, the cost of converting from single to multiple gas or water meters depends on both the location of the property and how the property is plumbed.
There are usually two ways to accomplish separate metering. One is having the service provider provide an individual meter for each unit. The other is sub-metering on the “house side” of the existing single meter. In either case, it will be necessary to have each unit serviced by a separate electric wiring, gas piping, or water piping system.
Depending on how the building was wired and plumbed, the cost of separating the units for each of the two approaches can vary from relatively small if each unit has separate systems from the point of the existing meters to extremely costly if the units are significantly interconnected.
In addition to the interconnected vs. separate issue, the choice of whether to sub-meter or have separate master meters installed depends greatly on the service provider, as setting new meters can be greatly different among electric, gas, and water providers.
The bottom line is that the cost for each utility can vary from hundreds to thousands per unit. The only way to determine the cost is to check out the plumbing – something that landlords can usually do themselves – and to ask both the service providers and sub metering vendors to provide estimates and, if units are interconnected, getting quotes from electrical or plumbing contractors for the task of separating units.
It is certainly a good idea to have tenants pay for their own usage, as those who conserve benefit and those who waste pay. However, you may find that neither separating via master metering or via sub-metering is cost effective. In this case, there are two possible solutions.
One is to allocate utility costs among units based on theoretical differences in usage. That is, charging units according to number of occupants and/or unit size. Whatever approach you take, keep in mind that you would not be able to change the terms of a lease during the lease period.
The other is to charge higher rents for each unit.
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Qustion 3
What is meant by Class B office space? Are there other classes?
Answer 3
Office space is usually divided into three classes – A, B, and C. The class rankings are just what one would expect. That is, higher quality at the Class A end and lower quality at the Class C end. The rating system is more a graduated scale, with each class being a range rather than a discrete class.
Defining the three classes can be difficult. As for many things, beauty is truly in the eye of the beholder and definitions are somewhat subjective. Definitions vary among regions, local markets, developers, owners, potential tenants, and real estate agents. It may even depend on competition
for tenants in a given market.
Class B and Class C buildings are often defined in reference to the qualities of Class A buildings. Judgment is always involved, as there is no set formula or legal criteria by which buildings can be placed into classes.
The classification of office buildings as either A, B or C usually relates to location, the year of construction, and physical characteristics such as design, type of construction, renovation, functionality, and the amenities that the building provides.
Class A
Generally speaking, Class A space is usually considered to be newer luxury office space that has finer finishing work inside and out, a lobby area, elevators if multi-story, multiple-fixture public rest rooms in common areas, and private restrooms within suites. The building is well located in a desirable business corridor, and is convenient to public transportation and freeways.
A Class A building is of modern construction (utilizing high quality building materials), with state-of-the-art functionality and architectural design, infrastructure, life safety and mechanical systems. Class A buildings are also located in the most sought-after areas. Not surprisingly, Class A buildings typically attract high quality tenants, command the highest rents (although competitive with other new buildings), include the best amenities, and offer the least attractive concession packages for tenants. They are almost always managed professionally.
Class A office space is the highest quality space locally available. The architecture of Class A office structures always prioritizes design and visual appeal over cost, and sometimes over practicality. A Class A building can be considered a testament to the success of its tenants.
Class A office space is built as multi-story (usually 3 floors or more) buildings using structural steel and composite concrete construction. Construction cost for the structure alone (excluding land purchase and site improvements) is typically relatively high per square foot, often several hundred dollars, and can rise significantly higher for a specific space due to the tenant’s preferences for interior finishes.
Class B
Harder to define, Class B space is generally less modern and with finish work that is not as high quality as Class A space. It may also be office space with no lobby, instead featuring exterior entrances to individual offices, much like garden offices or certain office condos. Not all garden offices are Class B, however. Class B buildings should have very little functional obsolescence and deterioration. They are usually highly functional, well-located facilities that have good management, and high tenant standards.
Offices built to Class A standards, but located too far off the beaten path may also be considered Class B. Class B buildings generally feature a less desirable design and infrastructure than Class A buildings. However, a well-located B building of the right type can sometimes be renovated and reclassified as Class A.
Class C
Class C space is generally older office space without up-to-date interior features. Class C buildings are usually located in less desirable areas. Offices that are worn or that suffer from significant functional or economic obsolescence also belong in this class. Generally, Class C buildings are more than 25 years old and have not been renovated but are maintaining high levels of occupancy. They command the lowest rents and attract the least credit-worthy occupants. It is not likely that a Class C building could be renovated to Class A status even if in a good location.
A number of Class C office spaces in the inventory of a particular market are not truly office buildings, but are walk-up office spaces above retail or service businesses.
Class E
Although historically not an official classification, one sometimes sees what is referred to as Class E office space in some cities. These are generally older Class B buildings that have been considerably renovated to become spaces with a totally new look. Due to their age, they usually have high ceilings, lots of large windows, and lots of wood. They tend to appeal to the high tech and dot-com tenants and this is likely the reason they are given the “E” class designation.
Summary
The definitions of class are subject to considerable variation and, as with many things, perceptions by tenants and the public are usually more important than the name designation.