Anytime you begin a construction project, you know there are certain risks you may not be able to predict. Injuries on the job, bad weather and material prices are just a few factors that may impede your project goals. Setbacks can cost you money and endanger the completion of your work. One element every construction site encounters is the environmental risk the project presents to the surroundings. There may be commonly known areas of potential harm against which you can insure your company, but it is difficult to know the varying laws, regulations and hazards of each jurisdiction and every type of construction. Pollution is a dirty word Environmental laws are constantly expanding, and the potential to harm the environment is real with every new construction plan. It is often a delicate juggling act to complete a building while causing minimal damage to the existing biomes and habitats. Environmental risks may occur from many sources on a construction site, for example: Heating and air conditioning units Drywall dust Improperly stored building materials Lead dust or paint (mostly when renovating or demolishing older buildings) Erosion Concrete washout Leaking equipment fuel You are not only responsible for keeping the air, water and earth clean throughout your construction, you are also overseeing the well-being of your employees and those who are exposed to your structure. For example, even materials that claim to be environmentally friendly may pose a risk by promoting mold growth. Weighing your risks If you have begun or are considering beginning a construction project, you may feel overwhelmed by the permits, documentation and insurance coverage California law requires you to maintain throughout the project. This may be especially true in the ever-changing area of environmental protection and pollution control. To minimize your risk, you will certainly want to cover every base so that, should a problem arise, your business is protected. Consulting with a risk management attorney will provide the opportunity to review the particulars of your project and help you determine the best way to protect your business from environmental liability or other risks that may jeopardize your goals. Experienced legal counsel will help minimize your frustration and allow you to focus on the future of your business. Source:, “”,
It’s not easy being green
Anytime you begin a construction project, you know there are certain risks you may not be able to predict. Injuries on the job, bad weather and material prices are just a few factors that may impede your project goals. Setbacks can cost you money and endanger the completion of your work. One element every construction site encounters is the environmental risk the project presents to the surroundings. There may be commonly known areas of potential harm against which you can insure your company, but it is difficult to know the varying laws, regulations and hazards of each jurisdiction and every type of construction. Pollution is a dirty word Environmental laws are constantly expanding, and the potential to harm the environment is real with every new construction plan. It is often a delicate juggling act to complete a building while causing minimal damage to the existing biomes and habitats. Environmental risks may occur from many sources on a construction site, for example: Heating and air conditioning units Drywall dust Improperly stored building materials Lead dust or paint (mostly when renovating or demolishing older buildings) Erosion Concrete washout Leaking equipment fuel You are not only responsible for keeping the air, water and earth clean throughout your construction, you are also overseeing the well-being of your employees and those who are exposed to your structure. For example, even materials that claim to be environmentally friendly may pose a risk by promoting mold growth. Weighing your risks If you have begun or are considering beginning a construction project, you may feel overwhelmed by the permits, documentation and insurance coverage California law requires you to maintain throughout the project. This may be especially true in the ever-changing area of environmental protection and pollution control. To minimize your risk, you will certainly want to cover every base so that, should a problem arise, your business is protected. Consulting with a risk management attorney will provide the opportunity to review the particulars of your project and help you determine the best way to protect your business from environmental liability or other risks that may jeopardize your goals. Experienced legal counsel will help minimize your frustration and allow you to focus on the future of your business. Source:, “”,
Waking up to development opportunities, at the right time for a ripe age
Raymond Chandler was in his early 50s when he published his first novel, “The Big Sleep.” It had a major influence on the emerging hard-boiled detective genre and was made into a movie starring Humphrey Bogart and Lauren Bacall. Other notable examples of creativity from people even older are not difficult to find. Colonel Sanders launching Kentucky Fried Chicken at 66 and Grandma Moses committing completely to painting at 78 are oft-cited instances. Nor is it only a few exceptional people who continue to have creative contributions to make later in life. Many, many seniors have this capacity and seek to develop it. And that is where an opportunity comes in for developers of senior housing. Senior artists colonies Here in the Los Angeles area, where Chandler set “The Big Sleep,” developers are awakening to the business opportunities presented by seniors’ desire to continue to engage in creative activities. After all, traditional senior housing hasn’t done much to stimulate the creative spirit. There may not be clichéd games of shuffleboard or endless games of bridge in such settings, but the overall atmosphere does little to nurture the artistic spirit either. In recent years, developers in Southern California have been acting to respond to this void. They have done this in the form of senior artists colonies. Like traditional senior housing, these apartment complexes tend to be age-restricted. But the buildings are designed to give seniors for artistic stimulation by including such features as art studios and theaters. These are not studios and theaters to sit and passively consume culture created by others. They are venues for seniors themselves to make music, create artwork or engage in wellness-related programs. Business opportunities There are also business opportunities for bringing programs that encourage creativity into traditional senior housing. But the newest powerful trend has been to build entirely new developments that embed the infrastructure for artistic expression right into the buildings themselves. This has already happened in North Hollywood, Long Beach, Burbank and elsewhere. In a way, such communities can be compared to the coworking settings we wrote about last month. Coworking settings seek to draw in younger folks, especially Millennials, with a new, more collaborative workspace model. Senior artist colony-type developments seek to draw in older folks with a new, more creative housing model that will encourage ongoing creativity and wellness. Making the right moves Of course, recognizing the existence of a business opportunity is only half the battle. You’ve also got to act on it effectively. That is where knowledgeable counsel about real estate, insurance and regulatory matters comes in. And for projects aimed at cultivating the creativity of older folks, the time may be right. Indeed, to use a line from “King Lear,” one could say, on this subject, that “ripeness is all.”
Waking up to development opportunities, at the right time for a ripe age
Raymond Chandler was in his early 50s when he published his first novel, “The Big Sleep.” It had a major influence on the emerging hard-boiled detective genre and was made into a movie starring Humphrey Bogart and Lauren Bacall. Other notable examples of creativity from people even older are not difficult to find. Colonel Sanders launching Kentucky Fried Chicken at 66 and Grandma Moses committing completely to painting at 78 are oft-cited instances. Nor is it only a few exceptional people who continue to have creative contributions to make later in life. Many, many seniors have this capacity and seek to develop it. And that is where an opportunity comes in for developers of senior housing. Senior artists colonies Here in the Los Angeles area, where Chandler set “The Big Sleep,” developers are awakening to the business opportunities presented by seniors’ desire to continue to engage in creative activities. After all, traditional senior housing hasn’t done much to stimulate the creative spirit. There may not be clichéd games of shuffleboard or endless games of bridge in such settings, but the overall atmosphere does little to nurture the artistic spirit either. In recent years, developers in Southern California have been acting to respond to this void. They have done this in the form of senior artists colonies. Like traditional senior housing, these apartment complexes tend to be age-restricted. But the buildings are designed to give seniors for artistic stimulation by including such features as art studios and theaters. These are not studios and theaters to sit and passively consume culture created by others. They are venues for seniors themselves to make music, create artwork or engage in wellness-related programs. Business opportunities There are also business opportunities for bringing programs that encourage creativity into traditional senior housing. But the newest powerful trend has been to build entirely new developments that embed the infrastructure for artistic expression right into the buildings themselves. This has already happened in North Hollywood, Long Beach, Burbank and elsewhere. In a way, such communities can be compared to the coworking settings we wrote about last month. Coworking settings seek to draw in younger folks, especially Millennials, with a new, more collaborative workspace model. Senior artist colony-type developments seek to draw in older folks with a new, more creative housing model that will encourage ongoing creativity and wellness. Making the right moves Of course, recognizing the existence of a business opportunity is only half the battle. You’ve also got to act on it effectively. That is where knowledgeable counsel about real estate, insurance and regulatory matters comes in. And for projects aimed at cultivating the creativity of older folks, the time may be right. Indeed, to use a line from “King Lear,” one could say, on this subject, that “ripeness is all.”
Can you kick out a tenant for having a pet without permission?
Dogs may be a man’s best friend. However, they can be a landlord’s worst nightmare. And this explains why most landlords include a “no pet “clause in their lease contracts. So, what happens when a tenant brings a pet into a rented property without your consent? Regardless of how you feel about the tenant bringing a dog into the rented property, it is important that your actions are informed by the law. UNDERSTANDING CALIFORNIA’S “REASONABLE ACCOMMODATION” LAW California law requires housing providers, including landlords, to make “reasonable accommodations” for renters. Basically, this refers to an exception, adjustment or change in rules, practices, services or policies that is necessary for individuals living with disabilities to adequately use and enjoy their rented property. One of these accommodations may involve allowing an ailing or a disabled tenant to own an assistance animal despite the existence of a “no-pet” policy. WHAT TYPES OF ANIMALS DO THE “REASONABLE ACCOMMODATION” RULE APPLY TO? Under California law, the following animals fall under the “assistance animals” category: Service animals – these animals are specially trained to offer specific assistance to disabled individuals, including those with mental health disabilities. These include: Service dogs – these dogs are trained to perform rescue work, pull wheelchairs or collect dropped items. Guide dogs – these dogs are trained by licensed trainers Signal dogs – these dogs are trained to alert owners with hearing difficulty Miniature horses – these horses are trained to perform similar tasks as service dogs Support animals – these animals provide cognitive, emotional or other support to disabled individuals. Also known as emotional support or comfort animals, these animals may or may not be trained. CAN YOU TERMINATE A LEASE CONTRACT IF A TENANT VIOLATES A “NO PET” POLICY? The answer to this question depends on a number of factors, including whether the animal in question could reasonably be considered an assistance or support animal. With that said, understanding California’s tenancy laws can help you protect your rights and interests while dealing with a tenant who seems to have violated a “no pet” policy.
Can you kick out a tenant for having a pet without permission?
Dogs may be a man’s best friend. However, they can be a landlord’s worst nightmare. And this explains why most landlords include a “no pet “clause in their lease contracts. So, what happens when a tenant brings a pet into a rented property without your consent? Regardless of how you feel about the tenant bringing a dog into the rented property, it is important that your actions are informed by the law. UNDERSTANDING CALIFORNIA’S “REASONABLE ACCOMMODATION” LAW California law requires housing providers, including landlords, to make “reasonable accommodations” for renters. Basically, this refers to an exception, adjustment or change in rules, practices, services or policies that is necessary for individuals living with disabilities to adequately use and enjoy their rented property. One of these accommodations may involve allowing an ailing or a disabled tenant to own an assistance animal despite the existence of a “no-pet” policy. WHAT TYPES OF ANIMALS DO THE “REASONABLE ACCOMMODATION” RULE APPLY TO? Under California law, the following animals fall under the “assistance animals” category: Service animals – these animals are specially trained to offer specific assistance to disabled individuals, including those with mental health disabilities. These include: Service dogs – these dogs are trained to perform rescue work, pull wheelchairs or collect dropped items. Guide dogs – these dogs are trained by licensed trainers Signal dogs – these dogs are trained to alert owners with hearing difficulty Miniature horses – these horses are trained to perform similar tasks as service dogs Support animals – these animals provide cognitive, emotional or other support to disabled individuals. Also known as emotional support or comfort animals, these animals may or may not be trained. CAN YOU TERMINATE A LEASE CONTRACT IF A TENANT VIOLATES A “NO PET” POLICY? The answer to this question depends on a number of factors, including whether the animal in question could reasonably be considered an assistance or support animal. With that said, understanding California’s tenancy laws can help you protect your rights and interests while dealing with a tenant who seems to have violated a “no pet” policy.
Why should you invest in commercial real estate?
The real estate industry is one of the most extensive businesses. Different options exist, including commercial real estate (CRE). Most developers gravitate towards this type of investment, as it offers significant benefits. The following are four reasons to invest in commercial real estate. Higher earning potential CRE has a higher earning potential due to the rent collected from tenants. And the income it brings in may be more, depending on the location, economy and other external factors. Even after paying taxes and maintaining the property, CRE has proven to have a higher return on investment. Stable income The setup of renting or leasing CRE guarantees steady income to investors. Compared to residential real estate, CRE has more extended leasing periods. Besides, their rental value is high – investors can get a reliable monthly income. Aligned goals Since your clients will be businesses, the chances are your goals align. For instance, a tenant will want to keep their store in good condition to attract clients, which is also your goal. While doing this, they help you protect the value of the investment and lower maintenance expenses, and in most cases, tenants are responsible for the maintenance of their space. Besides, a tenant would not want to be evicted from an area that brings them high profits. Thus, you may rarely encounter difficult clients or those whose behavior threatens the property. Get more clients Entrepreneurs know each other. When you get one tenant, and they confirm your property is top-notch and favorable for business, they will inform someone they know, a potential tenant, of the property. This may also be the case if you invest in apartment buildings. CRE is a secure and profitable investment. However, you should obtain adequate information to protect your investment.
Why should you invest in commercial real estate?
The real estate industry is one of the most extensive businesses. Different options exist, including commercial real estate (CRE). Most developers gravitate towards this type of investment, as it offers significant benefits. The following are four reasons to invest in commercial real estate. Higher earning potential CRE has a higher earning potential due to the rent collected from tenants. And the income it brings in may be more, depending on the location, economy and other external factors. Even after paying taxes and maintaining the property, CRE has proven to have a higher return on investment. Stable income The setup of renting or leasing CRE guarantees steady income to investors. Compared to residential real estate, CRE has more extended leasing periods. Besides, their rental value is high – investors can get a reliable monthly income. Aligned goals Since your clients will be businesses, the chances are your goals align. For instance, a tenant will want to keep their store in good condition to attract clients, which is also your goal. While doing this, they help you protect the value of the investment and lower maintenance expenses, and in most cases, tenants are responsible for the maintenance of their space. Besides, a tenant would not want to be evicted from an area that brings them high profits. Thus, you may rarely encounter difficult clients or those whose behavior threatens the property. Get more clients Entrepreneurs know each other. When you get one tenant, and they confirm your property is top-notch and favorable for business, they will inform someone they know, a potential tenant, of the property. This may also be the case if you invest in apartment buildings. CRE is a secure and profitable investment. However, you should obtain adequate information to protect your investment.
2 reasons to negotiate lower CAM fees in a commercial lease
Finding the right property can allow customers to start patronizing a new business quickly, but opening a physical location will also drastically increase an organization’s operating expenses. Any new commercial lease likely comes with several years of payment requirements. In addition to the base rent amount, there will usually be additional fees assessed to commercial tenants. Those renting a space in a multi-unit building or development, like a strip mall or office complex, will likely have to pay common area maintenance (CAM) fees for the spaces that they share with the landlord and other tenants. Although landlords often suggest a set fee or a specific percentage of the overall costs, tenants may want to try to negotiate those terms to arrive at a more favorable agreement. What are some of the reasons for a new commercial tenant to ask for concessions related to CAM fees? 1. THEY WON’T HAVE MUCH CUSTOMER TRAFFIC Exactly how a landlord determines the percentage of CAM fees that each tenant pays can vary depending on the amenities provided. Often, the traffic in and out will be a major consideration. The visitors at a retail storefront, for example, create parking and security demands. The less a business model relies on customer or client traffic, the lower the business’s demand concerning shared infrastructure will be. 2. THEY WILL HAVE FEW OR NO EMPLOYEES Much like customers, workers for commercial tenants are often expensive for commercial landlords. They use shared bathroom facilities and need someone working security to ensure they don’t end up mugged on their way to their car in the parking lot. When an organization does not have many employees, that can reduce the utilities and other services required by the commercial tenant and could therefore help convince the landlord to reduce the CAM fees the tenant will pay. Any reason to believe that a business will place less demand on shared resources or require less support from the landlord could influence the appropriate amount of CAM fees. Those who are focused on developing a business may have a hard time handling the negotiations often involved in securing a commercial lease. Seeking proper legal support can make it easier for entrepreneurs to review and negotiate commercial leases so that they can benefit from the most favorable terms possible.
2 reasons to negotiate lower CAM fees in a commercial lease
Finding the right property can allow customers to start patronizing a new business quickly, but opening a physical location will also drastically increase an organization’s operating expenses. Any new commercial lease likely comes with several years of payment requirements. In addition to the base rent amount, there will usually be additional fees assessed to commercial tenants. Those renting a space in a multi-unit building or development, like a strip mall or office complex, will likely have to pay common area maintenance (CAM) fees for the spaces that they share with the landlord and other tenants. Although landlords often suggest a set fee or a specific percentage of the overall costs, tenants may want to try to negotiate those terms to arrive at a more favorable agreement. What are some of the reasons for a new commercial tenant to ask for concessions related to CAM fees? 1. THEY WON’T HAVE MUCH CUSTOMER TRAFFIC Exactly how a landlord determines the percentage of CAM fees that each tenant pays can vary depending on the amenities provided. Often, the traffic in and out will be a major consideration. The visitors at a retail storefront, for example, create parking and security demands. The less a business model relies on customer or client traffic, the lower the business’s demand concerning shared infrastructure will be. 2. THEY WILL HAVE FEW OR NO EMPLOYEES Much like customers, workers for commercial tenants are often expensive for commercial landlords. They use shared bathroom facilities and need someone working security to ensure they don’t end up mugged on their way to their car in the parking lot. When an organization does not have many employees, that can reduce the utilities and other services required by the commercial tenant and could therefore help convince the landlord to reduce the CAM fees the tenant will pay. Any reason to believe that a business will place less demand on shared resources or require less support from the landlord could influence the appropriate amount of CAM fees. Those who are focused on developing a business may have a hard time handling the negotiations often involved in securing a commercial lease. Seeking proper legal support can make it easier for entrepreneurs to review and negotiate commercial leases so that they can benefit from the most favorable terms possible.
Considerations when forming a real estate development partnership
There are times in business when it feels like it makes sense to pool your knowledge, capital and expertise with another person. It gives you options that you wouldn’t otherwise have to work outside your comfort zone and to be a part of projects that excite you. As with any relationship, it’s important you know just what you’re getting into. It makes sense to iron out how you want the partnership to work before signing any agreements. If it’s your first time forming a real estate development partnership, here are a few considerations to have in mind. FIND A PARTNER WHO IS A GOOD FIT FOR YOU Sharing business decisions with another person can be difficult. It’s important to be sure that the partnership is the right thing for you before you sign up. Look for qualities in a partner that you share and feel you can trust. CHOOSE THE RIGHT TYPE OF BUSINESS ENTITY Generally, people choose to operate under either a Limited Liability Company (LLC), Limited Liability Partnership (LLP) or a Real Estate Limited Partnership (RELP). Which type of entity is right for you will depend on a number of things including how you wish to be structured and the nature of your business. HAVE A PARTNERSHIP AGREEMENT IN PLACE This document is used to secure, in writing, the role and responsibilities of each partner. It should explain how finances will be dealt with, the goal of the business partnership and the commitment of each party to reaching that goal and how disputes will be handled. This is an important document to have in place as it can be used in legal proceedings should one party not meet their expectations under the agreement, Forming a real estate development partnership can be incredibly beneficial for taking your business to the next level. Make sure you’re protected personally by having all the necessary documentation in place.
Considerations when forming a real estate development partnership
There are times in business when it feels like it makes sense to pool your knowledge, capital and expertise with another person. It gives you options that you wouldn’t otherwise have to work outside your comfort zone and to be a part of projects that excite you. As with any relationship, it’s important you know just what you’re getting into. It makes sense to iron out how you want the partnership to work before signing any agreements. If it’s your first time forming a real estate development partnership, here are a few considerations to have in mind. FIND A PARTNER WHO IS A GOOD FIT FOR YOU Sharing business decisions with another person can be difficult. It’s important to be sure that the partnership is the right thing for you before you sign up. Look for qualities in a partner that you share and feel you can trust. CHOOSE THE RIGHT TYPE OF BUSINESS ENTITY Generally, people choose to operate under either a Limited Liability Company (LLC), Limited Liability Partnership (LLP) or a Real Estate Limited Partnership (RELP). Which type of entity is right for you will depend on a number of things including how you wish to be structured and the nature of your business. HAVE A PARTNERSHIP AGREEMENT IN PLACE This document is used to secure, in writing, the role and responsibilities of each partner. It should explain how finances will be dealt with, the goal of the business partnership and the commitment of each party to reaching that goal and how disputes will be handled. This is an important document to have in place as it can be used in legal proceedings should one party not meet their expectations under the agreement, Forming a real estate development partnership can be incredibly beneficial for taking your business to the next level. Make sure you’re protected personally by having all the necessary documentation in place.