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Simple Tenant agreement to help everyone.

riobison

Well Known Member
I’ve bought another hanger closer to home and like everything it’s becoming more expensive and more complicated. To the point that I’ve seriously considered getting out of aviation and owner ship after more than 40 yrs. But I’m going to hang in a little bit longer if I can and will take in a tenant or 2 to help offset some of the costs.

From the insurance companies starting with the several dozens of questions where some are totally irrelevant to a hanger that’s an extension of my garage, but they all want to know what I’m doing in the hanger and for the most part clearly state what they will cover and will not cover as well as what the airport wants for reporting on hazardous substances, wastes and environmental cleanup plan etc. It’s become very complicated with the insurance companies as well as some of the airport management them selves.

So, what I’m looking for is something that I may be able to use as a simple document for me the landlord to have my tenant sign that basically say they won’t break the laws, do stupid stuff with fuel in the hanger, no open flames, environmental issues and of course not sue me if they trip, slip fall etc. and get injured as well as any damage out side of normal wear and tear.

I could use something similar to the 47-page document that the airport authority wants me to sign for a lease agreement and throw in some of the stuff from the insurance company’s but its unlikely any potential tenant would sign or even comply with that for a simple $300 a month spot in a hanger.

Any suggestions or able to help?

Thanks
Tim
 
Consider getting an umbrella liability insurance policy with increased limits for cheap. I guess all states could be different, but you might find problems with enforcing a lease stipulating that tenant has to give up the right to sue, especially if the allegation was that you were negligent in some way. I'm not an attorney, but I would recommend trying to keep your lease agreement as simple as possible. No fueling or storage of fuel in the hangar isn't an unreasonable rule to put in the lease, along with whatever governmental laws you are subject to. With all that said, maybe the increased level of worrying won't be worth the extra $300-$600 per month for you. Unless you get good tenants, you may find your stress level going up, just from dealing with tenants, ie. rent collection, damaging other planes, prop blasting into the hangar, failure to lock up properly, violating your rules, on and on.. Also, leasing out part of a hanger that YOU also use could even add to the stress, similar to leasing out a room in your home. There's a lot to be said for leasing out of sight, out of mind. Having to interact with your tenants when you go to the airport for fun, could turn your funtime into not so much. Especially if it's a problem tenant.. I'm happy to be out of the landlord business! Anyway, just a few things to think about..

Edit.. I see you're in Canada.. I know ZERO about leasing in Canada, so you can probably take much of my post with a grain of salt..
 
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Simple is better

Hello Joe,

I agree that I need to keep it clear and simple. One or 2 pages max. I agree as well that after 40 yrs of not having a tenant to now almost needing a tenant to help defray the costs could very well be a headache that I don't need at this point in my life.

Yes I'm in Canada but there are a lot of similarity's between the 2 country's and our laws. It seems that Canada is following the US in the whole CYA thing and making everything so complicated and expensive.

I do have a plan B. Thats sell my RV4 and hanger and buy into one of the Citabrias (I've owned 3 and I do miss the Citabria) or into a C-182. Not ideal but an option.

Tim
 
Whoever rents your hanger, have them add you onto their policy. Most aircraft insurance covers non movement liability and damage. It’s almost like having an umbrella policy. I have been doing that way for years.
 
Don't cut corners

I would say, do NOT cut corners trying to make things simple with respect to lease or sub-lease agreements. Handshakes are wonderful things, until they're not. I can't stress enough the importance of ensuring all parties understand that it's an airplane hangar and not something else. Make sure that's in writing and verbally acknowledged.

Here's a sample usage and prohibited activities portion of an agreement in case it helps.
 

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