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Question:
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Dear Ken:
I have a client who wants to lease an $8,000 video surveillance system I designed for him for 36 months, with the option to renew, in case they do not vacate the space on schedule.
If 'buy out' clauses are a part of the typical lease then one of those too.
If lease agreements come in different flavors, advise the most direct way for me to get the document created, and in my client's hands so we can roll on the install.
My employer is willing to be the bank, rather than use a third party leasing company.
How much and how fast to draft the lease agreement?
Best Regards,
Tim O'Leary
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Answer:
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The Standard CCTV Lease sounds like exactly what you need. This contract can be used for CCTV with local DVR or for a CCTV system that communicates with a central station for video monitoring and data storage.
Like a true lease there is no buy out option. I've suggested that you stay away from those types of relationships. For one thing permitting the dollar buy out can trigger federal disclosure laws and alarm contracts typically do not comply with those laws.
You will find that the CCTV lease [or the CCTV Sales contract ] will suit your needs. It will cover the installation and continued RMR over the life of the lease.
The CCTV Sales contract covers intallation, service and monitoring of the system, or any of those services of not all are selected.
Although my prediction that CCTV alarm verification will be required and common place soon, it hasn't happened as fast as I thought, but I still think it's the near future for the industry. Guard response verification, required in some jurisdictions, is costly and dangerous [for the guard].
Just yesterday I heard a story - plumbing supply owner's car got keyed and neighbor comes by to let him know. Then neighbor finds out his car was also keyed. They check out the video and see a "homeless guy" keying the cars. Before they call the cops the neighbor [construction business in Queens, NY] gets in his car, drives around the area, finds the guy [the "unsub' if you watch Criminal Minds] and "prepares" him for introduction to the cops. How's that for verification, NY style.
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Another contract question:
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Question:
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Hello Ken;
I am interested in an alarm contract from you but am confused as to what to choose. We conduct business in California and would like one contract to cover our services of basic alarm installations to integrated security solutions including but not limited to video surveillance (CCTV), access control, and PERS. We would also like monitoring for all listed services above included in this contract. Do you have one that accomplishes this in one document as it looks like we might need multiple contracts for this?
Also, what format do we receive the contracts in? Are they printer ready to produce on multi-part NCR forms (is this what you recommend) or are they printable from a regular desk top printer as needed on normal paper and then signed twice for a copy to us and the client?
We are interested in this information as soon as possible as we need the contracts immediately. We also have an existing contract that probably covers most of this except for any new laws that we should be including for the internet based services - video surveillance, etc. Is it easier for you just to review this contract and add to it instead of us purchasing new?
Finally, what are the pricing options for the above?
Thank you.
Cathy
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Answer:
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You can not have one contract that covers everything you do. At least not from me. In my opinion any contract that tries to covers all of the services you describe [ and all of the services typically offered by alarm companies] will be extremely difficult to read and understand, and will likely not provide all of the provisions that I, and many alarm company owners who have suggested changes and additions to the Standard Contracts, believe are necessary or appropriate.
If you see all of the Standard Contract Forms I offer you will see that the different services you provide are addressed in the various contracts that are offered. There are two "all in one' contracts that you can get.
The All in One for $600 covers sale, installation, service and monitoring for any generic security equipment. It can be used for residential and commercial subscribers. It can be used for fire, although I do not suggest it for commercial fire.
The Fire All in One is for commercial fire. It's cost is $850 and it covers sale, installation pursuant to filed and approved AHJ plans, service, monitoring and inspection.
I suggest the Disclaimer Notice with all subscribers, commercial and residential.