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We just finished fixing up our basement for storage. We are providing all units with storage space. However, since we are a small self run building (10 units) we wanted to give owner occupiers storage for free. We want to charge tenants yearly for the service. Reasons being the owners who live here chipped in on the fixing up the basement, contribute to generally tasks, like keeping the hallway clean and snow removal. Any opinions?
Sorry. The situation is we have a small brownstone building. We fixed up the basement(cleaning, painting, etc.) We want to allow people to storage in the basement ( not storage lockers or storage company) just kind of like a small cabinet. There has not been storage ever in the building. Every apt. will get a storage space. We want to give pwner occupiers free storage as a perk for helping run the building ( and all of them fixed up the basement). we want to charge subtenants for the storage access. My question, is can a co-op charge subtenants if they want to use the storage space while live in owners get it for free?
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Alisa, You had better ask your co-op attorney. The reason is that your proprietary lease probably includes such things as added amenities. As someone posted earlier, one thing to watch for with added features in a bldg with a sponsor is that in general you can't legally take a service away once it's there.
My building has added storage space and other things that are available at a fee to everyone. Our lawyer says that as long as there's a charge, you can take it away (i.e. close the storage space for everyone for some reason) without the sponsor/subtenants claiming a reduction of services (because it was not free).
I haven't heard of charging only the subtenants for a service. Sounds as though you're creating two classes of residents. Maybe it's legal, but in case it's not, run it by your lawyer to avoid the potential of facing complaints or, worse, a lawsuit.
Another reason to involve a legal specialist is that you may need to update your certificate of occupancy to show that you're using previously vacant space for storage.
And get the sponsor involved soon! He/she may have an answer from experience in other buildings.
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thanks for the great responses. We are going to run this by with our lawyer.
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Just wanted to post an update. Our lawyer told us that we cannot charge different people prices. He told us that do not need to charge a fee to be able to take away the amenity is needed as it is not in our original proprietary lease.
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Alisa, thanks for the update. I want to clarify your post, however, because I may be reading something into it...
Are you saying that your lawyer told you:
1. That you cannot charge different fees for different people?
2. That you do not need to have a fee-based structure if you want to guard against tenant lawsuits for taking away amenities?
3. That if an amenity is not in the original Proprietary Lease it will NEVER be subject to amenity disputes?
Please confirm and/or elaborate, if you have time?
THANKS.
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Our lawyer told us we cannot charge different fees to different tenants. So we cannot charge subtenants more for storage than owners. He did say that since we had co-op members work on fixing up our basement, we could have paid them for their work. We did not do that.
He said that since it is not in the proprietary lease, we can take it away at any time, regardless of whether there is a fee.
He did not say we would be safe from lawsuits ever. I don't think we asked him that. However every time I visit him, it seems like we can be sued for everything! (I figure since he is a lawyer he hears lots of the bad, none of the good.) A friend told me about how a lessee sued the co-op after it had removed some things of hers from the storage. The items were against the rules, she had received written notices about the items. She sued the co-op. She was wrong, but its still a lawsuit to deal with until it gets thrown out.
He did say we should require anyone who stores items to provide proof of insurance, (not the co-op insurance), but apt insurance.
hope that helps!
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1) make everyone who signs up for storage sign a contract/ rental agreement saying the coop/condo is not responsible for their stored items and that no flammable liquids, etc can be stored.
2) charge eveyrone $5 a month.
3) subtenants should be billed through the primary tenant.
done.
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We charge 20 for small storage space and 25 for large...
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I Don't quite understand what your asking...
How did the Owners/shareholders pay and not the tenants?
If there was an assessment, or if it was paid through maintenance, then they paid just as much as you did, because those units pay just the same as anyone else.
If you are assessing special for the purpose of building the units, and excluding the sponsor/investors from the assessment, then your statement is correct and your actions justifiable. - That's just an opinion
~AR
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If renters had storage space prior to converson, then you can not take it away or charge them for the storage space. This would be deemed as a decrease in service. IF however, there was never any storage space and a space has been made for that purpose, they you may charge for the storage space. Keep in mind what AR said, if monies came out of maintenance then the sponsor or investors of rental units have most likely paid for it.
Pg
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It sounds like you live in a building where all the units are sold, and some units are being sublet by the share holders. And that there is no sponsor or rent regulated apartments.
I don't think you can offer an amenity some share holders and not all of them in that case it is the over tenants decision as to if his or her subtenant gets storage or not and for how much.
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The advice to involve your co-op lawyer is important as the co-op or condo with stosrage becomes a bailee and there are obligations to fulfill.
However, I am confused. It seems you have a common area without cages now that will be open to the residents in order to place their own cabinets. Is this what you are intending?
If you are only providing a common area for residents to put their own closets or cates, you are better off going one further step and buy equipment (cages, cabinets, lockers, etc.) that can be anchored to the floor and between each other so that they will not topple over and create a liability issue to a resident or to other cabinets. I'm sure you are better off laying out the storage place so that everyone gets equal access, but more important, provide emergency lights and a path out in the event of blackouts or emergencies.
Regardless of how you intend to use the storage, ascertain that it is flood-proof or water tight. You do not want to have residents store things that may be subject to water damage or mildew to avoid nuisance claims.
Rules for storage should be created and enforced, i.e., define what may be stored, vacate prior moving out the space. As the bailor of the space, now you have obligations that you assume and throwing things left over become a procedural issue.
Obviously, some of these questions should be cleared with the attorney.
AdC
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Our space only allowed 250 “dog kennels”. Thus, not enough for all.
We charge a one time transfer fee of $25 for admin purposes.
Then we charge $6 a month thereafter.
We do not permit any storage cage use by sub-tenants.
That’s it. Don't know if this helps.
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Forgive me, but what is your question that you want help with. It is a little confusing.
FN
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