Fellow broker needs advice
I have a 4,000 SF property I'm about to list that is in desperate need of a new roof. It leaks pretty heavily during a storm so a few buckets are scattered around. One half is occupied by a Thai restaurant (they somehow tolerate the leaky roof) and the other half is vacant. I had an inspector come in and he confirmed there wasn't any mold issues. 

The owner isn't willing to spend the $20k on a new roof. I would typically pass on this listing but it fronts a major corridor and if priced right, it should sell fairly quickly. 

The owner wants me to list it for sale and for lease. I've advised him not to lease out the vacant space as it is inhabitable due to the roof and exposes him to all sorts of liabilities. I'm also wondering if the city could prevent a Tenant from occupying the building. 

He's basically said that if I don't actively market it for lease then he will do it himself. There's also a language barrier so that's made it difficult to explain things to him. 

I've sent him a sale/lease listing agreement but have added a provision saying that the "Property will be marketed For Lease 60 days following execution of this Agreement". I'm pretty confident that I can get this under contract within 60 days so the leasing should be a moot point. I'm also nervous that if we lease that vacant unit, he will take whatever tenant and rent he can get, resulting in a lackluster producing income property which will make it impossible for me to sell. About $30k in reno could make this property produce at least $5/SF more and attract a credit worthy tenant. 

I'm getting kickback on the provision. Should I just list it straight up for sale and for lease? I can't imagine any Tenant would be dumb enough to lease a unit with a leaky roof but I've seen dumber things happen. While ethically, I don't want to sabotage any potential Tenants from moving in, I want to make it very clear that the roof is leaking and the Landlord has no intention of repairing it. 

Any advice on what you would do in this situation? Or any problems you might predict arising? This is the first listing I've had with major functional obsolescence, not sure how to handle it. 


[{"id": "cqrncjx", "text": "If you want the listing, I'd just be clear with tenants it requires a new roof and double make sure you are making no representations regarding suitability for any use.  I think the city could prevent it from being occupied for a lot of uses, depends how picky they want to be.  I'd worry about the Thai place failing some health inspections too over this.  Pretty sure you can't have roof water leaking into your space if you are making food there......  \n\nSounds like there is no way that thing leases to me unless he abates a bunch of rent for someone to pay to fix it.  ", "replies": [{"id": "cqrpe3q", "text": "The owner has been trying to lease this himself for over 6 months with no luck so I can't imagine once I have it listed, any Tenants are magically going to want to move in. Still a little nervous about somehow being held liable for something. \n\nHe had a very strong Tenant in this building for almost 15 years and they finally moved out, I called and they said the owner wouldn't fix the roof so they left. I'd expect the Thai restaurant would have done the same thing but they recently renewed their lease for another 5 years. \n\nIt's all very strange. ", "replies": [{"id": "cqrssj9", "text": "Well, if he didn't fix the roof for the last tenant why would he fix it for a new tenant?  Sounds like a time suck to me... Just my two cents. ", "replies": [{"id": "cqrxkdk", "text": "I'm not asking him to fix the roof. I'm asking him to list it for sale only and forgo leasing it altogether. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cqv93o0", "text": "Start with a high lease rate that people will pass up. You might annoy a few brokers, but at least your client will be happy.", "replies": [], "depth": 1}, {"id": "cr7b0re", "text": "I STRONGLY recommend you pass on this. Obvious reason: so many downsides. Less obvious but much more important reason: It's good for you! \n\nIt's very important to say no sometimes. I find that being in a position where I can say no either to a buyer or to a tenant makes my life way, way better. You will also find in general that lowball clients are a terrible investment in time. Surprisingly, higher end clients are usually far easier to deal with, especially over the long run.\n\nIt may also work as reverse psychology and get the owner to take you seriously, though that would seldom be my primary reason for saying no.", "replies": [], "depth": 1}]