ASTON’SINSIGHTS
KEEPING UP WITH MAINTENANCE REQUESTS: A CASE STUDY
February 2024
The situation:
After leasing a commercial space for the purpose of a bakery for several years, an unfortunate time came where the tenant faced a crucial malfunction: the cool room compressor failed. Despite a technician deeming it irreparable and needing a $7000 replacement, the tenant bore the cost. Seeking full reimbursement from the landlord, they were denied, the landlord citing the tenant's responsibility for maintenance and repair.
The process:
The dispute escalated to mediation with the VSBC. Initially, both parties resisted negotiation; the tenant sought full reimbursement while the landlord argued maintenance negligence. Mediation revealed the compressor's age and limited lifespan. The landlord offered $5000, with the tenant willing to settle for $6000, but neither party would negotiate further.
The resolution:
The mediator suggested a solution: the landlord granting the tenant a rent-free period valued at $6,000 as reimbursement. Both parties accepted the proposal. The tenant welcomed the $6,000 rent reduction, while the landlord acknowledged that, accounting for taxes, this amount was less than the initially proposed $5,000 payment.
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VOL. NO. 1 ISSUE NO.1 astoncommercial.com.au
PROPERTY MANAGEMENT INSIGHTS. VOL. 1