Our four year
rental agreement for a treadmill expired end Nov 2018
The only item of gym equipment in the
below photos from our ground floor gym that SP52560 has rented is the
Life Fitness - Club
Series treadmill that appears in the 1st and 2nd below photos.
SP52560 has rented it from
Fitness Equipment Finance for
month ($2,821.08 p.a. = $11,284.32 'in toto'). The four
year lease expired at end Nov 2018.
Based on the below two written quotes to purchase a replacement Treadmill our
maturing rental contract for only one item has been costly.
Philip Johnston, Chairperson, understands that all the other
gym equipment are
hand-me-downs from former owners or tenants.
CFO, Life Fitness Australia, Philip
Johnston has established that our 48 months rental lease expired at
end Nov last year.
Clause 11 of our rental contract with Life Fitness Australia dated
30 Oct 2014 does not appear to provide a 'residual value' or provision for the
Owners Corporation to own the leased Treadmill at the completion of the 48
months' contract or to purchase it at a residual price.
Nor does the lessor's due diligence document dated 28 Oct 2014 provide any
insights. Hence, the Owners Corporation appears obligated to release the
Life Fitness - Club
to Life Fitness or continue to pay $235.09 p/m
and not own it.
The more expensive treadmill,
namely the Forma Jog, is used extensively by Fitness First where the
workload would be more than 50 times higher than usage in The Pavilion's
Over the last four years the
Owners Corporation has paid double the price of purchasing a gymnasium grade
treadmill, namely paid monthly rentals of $235.09 that have aggregated to
a whopping $11,284.32.
The Chairperson recommends that the Owners
Corporation purchases one of the above two treadmills.
Or purchase a second hand Precor 956i Treadmill (weighs 200KGs) with a 4HP
motor on Gumtree at Coogee for $1,200 which is less than five months
rental of our existing 'rented' treadmill.