Bushes and trees are closely associated with a building, so they have a determinable useful life. So, should a tenant pay for the entire cost of a new or replacement tree in the year it is planted?
If the tree has a 20 year useful life and the tenant only has 5 years to go in the lease term, should it pay for the whole “20 year” cost? Suppose a tenant and its landlord agree which Capital Improvements will be “in CAM” and how those costs are to be spread out over the useful life of the item.
If you do, and you’ve followed the discussion to this point, you know that the issue is that you don’t throw the whole replacement cost into the first year’s CAM bill.
So, if you are going to put any part into CAM, you need to agree on the useful life of a roof.
Do you use the “warranty” period – e.g., use 20 years for a roof with a “20 year” warranty? Isn’t a roof warranty merely a promise that the roofer will come back for 20 years and fix defects in the roof?
If you think that’s a tough one, let me share a secret with you.
There are other examples of all stripes and colors, but that’s not where we are going today. A repair is considered to be a capital repair when it is undertaken to improve or extend the normal economic life of an existing structure.This isn’t a treatise; it is merely one poor blogger Ruminating. Welcome to Life Voyeur - the only place on the Web where you can see REAL-LIFE and not staged adult voyeur video without having to pay for it! Shouldn’t a tenant pay the “depreciation” for the mechanical sweeper at least to the limit of what is saved?This Blog entry covers (and poorly, at that) about 3% of the issues, but the ones it covers apply to at least 80% of the “fights.” If you want to add your comments, and I really, really hope you do, please don’t nit pick on the details.