February 14, 2013
As a building owner of property manager, it's always challenging (and expensive) to have an empty building. Unfortunately, the costs don't stop when the rental revenue does - not the best situation! We understand expenses need to be reduced to a minimum during this period, but taking it too far can be a bad idea. In situations like this, it's important to remember to:
Preserve the Value of Your Assets
Equipment of this kind is deteriorating continuously from the day it is installed. You ongoing maintenance program slows the deterioration - flattening the deterioration curve and giving it a full life of 20-30 years. Neglect the maintenance and your equipment will quickly become unreliable and deteriorate much more rapidly. In fact, you could shorten its life by as much as half!
Maintain a Functioning Asset to Market the Property
Prospective tenants who require backup power will see an existing generator as a real asset, and this could distinguish your property. Without a well-functioning emergency power standby system, you could lose this type of tenant. Don't limit your prospects by not having a well-functioning emergency power standby system.
Keep your Bay Area Air Quality Management District (BAAQMD) permit current
BAAQMD permit requirements for cleaner burning diesel engines have increased in recent years. Older generators that do not meet these newer requirements may be grandfathered, if they keep their permits current. It is important to not let your permit lapse during a period of vacancy. If a permit does lapse, you may not be able to re-permit the unit and could be forced to replace it.
We would be happy to discuss your situation and to devise a plan to accomplish these goals as inexpensively as possible.
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