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As a residential property owner in Los Angeles, your hope is that you will be able to maintain a good relationship with all of your tenants. Doing so ensures that you maintain a strong reputation (which can then also help guarantee that there will rarely be a shortage of demand for your properties). Yet despite your best efforts and wishes, there may be times where a tenant’s actions (or inaction) forces your hand and requires you to consider commencing eviction proceedings. Yet just as you hope to be known as a reasonable landlord, you also do not want to be known as one who evicts over every little discrepancy or disagreement. Being in too big of a hurry to get someone out of one of your units might come back to haunt you. Thus, it is important to understand the circumstances in which you are within your rights to evict. According to information shared by the Judicial Branch of California, you can evict when: A tenant fails to meet rent payment deadlines A tenant damages your property A tenant makes themselves a serious nuisance to other residents of the same property A tenant engages in illegal activity on your property Instances where a tenant violates the term of a lease agreement (e.g. bringing in a roommate without informing you when their rent rate is based on occupancy) can also be grounds for eviction. In some cases, it may be in your best interest to work with the tenant to resolve any violations before considering eviction. Yet where a first offense is egregious enough, you are likely justified in evicting.

As a residential property owner in Los Angeles, your hope is that you will be able to maintain a good relationship with all of your tenants. Doing so ensures that you maintain a strong reputation (which can then also help guarantee that there will rarely be a shortage of demand for your properties). Yet despite your best efforts and wishes, there may be times where a tenant’s actions (or inaction) forces your hand and requires you to consider commencing eviction proceedings. Yet just as you hope to be known as a reasonable landlord, you also do not want to be known as one who evicts over every little discrepancy or disagreement. Being in too big of a hurry to get someone out of one of your units might come back to haunt you. Thus, it is important to understand the circumstances in which you are within your rights to evict. According to information shared by the Judicial Branch of California, you can evict when: A tenant fails to meet rent payment deadlines A tenant damages your property A tenant makes themselves a serious nuisance to other residents of the same property A tenant engages in illegal activity on your property Instances where a tenant violates the term of a lease agreement (e.g. bringing in a roommate without informing you when their rent rate is based on occupancy) can also be grounds for eviction. In some cases, it may be in your best interest to work with the tenant to resolve any violations before considering eviction. Yet where a first offense is egregious enough, you are likely justified in evicting.

Before you invest in California commercial real estate, you should carefully check out its zoning restrictions. Why? Because local zoning laws and regulations with regard to the property in which you wish to invest may well determine your ultimate return on investment. Per FindLaw, zoning generally falls into one of the following five categories: Commercial where you can build and sell, lease or rent offices and/or retail space Industrial where you can build and sell, lease or rent manufacturing space Residential where you can build and sell, lease or rent only single- or multi-family structures Recreational where you can sell, lease or rent the land itself or the structures you build on it only for recreational activities Agricultural where you can sell, lease or rent the land itself or the structures you build on it only for farming activities If you desire, you can also operate a qualifying business yourself in any of these zoned areas. Zoning coverage Zoning laws not only determine what kinds of structures you can build in a particularly zoned area, but also may regulate such things as the following: How tall a building can be How much square footage it can contain How close one building can be to another How much parking space each building can or must provide How much noise a business or resident can make How the business owner or resident must handle waste In addition, these laws may well regulate the types, if any, of signs allowed, as well as their size, appearance, placement, etc. While you should not interpret this educational information as legal advice, it can help you understand the importance of thoroughly understanding the zoning laws in place on any commercial property in which you want to invest.

Before you invest in California commercial real estate, you should carefully check out its zoning restrictions. Why? Because local zoning laws and regulations with regard to the property in which you wish to invest may well determine your ultimate return on investment. Per FindLaw, zoning generally falls into one of the following five categories: Commercial where you can build and sell, lease or rent offices and/or retail space Industrial where you can build and sell, lease or rent manufacturing space Residential where you can build and sell, lease or rent only single- or multi-family structures Recreational where you can sell, lease or rent the land itself or the structures you build on it only for recreational activities Agricultural where you can sell, lease or rent the land itself or the structures you build on it only for farming activities If you desire, you can also operate a qualifying business yourself in any of these zoned areas. Zoning coverage Zoning laws not only determine what kinds of structures you can build in a particularly zoned area, but also may regulate such things as the following: How tall a building can be How much square footage it can contain How close one building can be to another How much parking space each building can or must provide How much noise a business or resident can make How the business owner or resident must handle waste In addition, these laws may well regulate the types, if any, of signs allowed, as well as their size, appearance, placement, etc. While you should not interpret this educational information as legal advice, it can help you understand the importance of thoroughly understanding the zoning laws in place on any commercial property in which you want to invest.

As a developer, you know that investing in a California investment partnership can prove quite lucrative. But before you invest, you need to make certain that you understand how California law defines and treats these investments. For instance, as FindLaw explains, Section 17955 of the California Revenue and Taxation Code defines an investment partnership as one in which at least 90% of its investment securities represent a combination of bank or other financial institution deposits and the office space and equipment necessary to conduct business. In addition, at least 90% of its gross income must derive from the dividends, interests and gains it receives from selling or exchanging its qualifying investment securities. Qualifying investment securities As for “qualifying investment securities,” they can include such things as the following: Common stock Foreign or domestic deposits of cash or currency equivalents Securities backed by mortgages or other assets Repurchase agreements Futures contracts for stocks or bonds Regulated futures contracts Under no circumstances, however, does your interest in any partnership other than another investment partnership qualify as an investment security. Taxable income If you do not live in California on a full-time basis, you will not have to pay California income tax on the dividends, interest or gains you receive from your qualifying securities under several specified circumstances including any of the following: Your only contact with the investment partnership is through a California broker, dealer or other financial advisor The partnership qualifies as a California investment partnership, regardless of whether or not it locates its principal place of business in California The partnership qualifies as a regulated investment company, regardless of whether or not it locates its principal place of business in California This is general educational information and not intended to provide legal advice.

As a developer, you know that investing in a California investment partnership can prove quite lucrative. But before you invest, you need to make certain that you understand how California law defines and treats these investments. For instance, as FindLaw explains, Section 17955 of the California Revenue and Taxation Code defines an investment partnership as one in which at least 90% of its investment securities represent a combination of bank or other financial institution deposits and the office space and equipment necessary to conduct business. In addition, at least 90% of its gross income must derive from the dividends, interests and gains it receives from selling or exchanging its qualifying investment securities. Qualifying investment securities As for “qualifying investment securities,” they can include such things as the following: Common stock Foreign or domestic deposits of cash or currency equivalents Securities backed by mortgages or other assets Repurchase agreements Futures contracts for stocks or bonds Regulated futures contracts Under no circumstances, however, does your interest in any partnership other than another investment partnership qualify as an investment security. Taxable income If you do not live in California on a full-time basis, you will not have to pay California income tax on the dividends, interest or gains you receive from your qualifying securities under several specified circumstances including any of the following: Your only contact with the investment partnership is through a California broker, dealer or other financial advisor The partnership qualifies as a California investment partnership, regardless of whether or not it locates its principal place of business in California The partnership qualifies as a regulated investment company, regardless of whether or not it locates its principal place of business in California This is general educational information and not intended to provide legal advice.

California ranks among the highest in the nation for property taxes. The burden of these taxes is felt largely by commercial property owners in the state. To make their investments worthwhile and bring in the maximum revenue, the owners of commercial properties may pass some or all of this burden onto their tenants. According to a California Globe report, commercial property owners in the state may see their property taxes increased if a recently qualified ballot initiative is passed. The proposed initiative seeks to split Proposition 13, applying different tax rates for commercial properties and residential properties. Currently, the tax rate for commercial and industrial properties is capped at 2%. However, under Proposition 13 split roll initiative, commercial properties would no longer have the proposition’s protections and could be taxed at a much higher rate. Those opposed to the Proposition 13 initiative suggest it is a targeted tax increase on businesses. Further, they point to the significant increase in local property tax assessments since the implementation of Proposition 13, which amount to $19 billion between 2008-2009 and 2018-2019, as evidence that the proposition is not starving the local government of revenue to which it is due. Advocates for the proposed initiative, however, suggest that the proposition as it is currently written allows businesses to pay less than their fair share of property taxes. The initiative’s supporters tout it as a means to bring much-needed and previously missed-out-on funding to public education in the state. The information contained in the preceding post is meant for general purposes only and should not be considered as legal advice.

California ranks among the highest in the nation for property taxes. The burden of these taxes is felt largely by commercial property owners in the state. To make their investments worthwhile and bring in the maximum revenue, the owners of commercial properties may pass some or all of this burden onto their tenants. According to a California Globe report, commercial property owners in the state may see their property taxes increased if a recently qualified ballot initiative is passed. The proposed initiative seeks to split Proposition 13, applying different tax rates for commercial properties and residential properties. Currently, the tax rate for commercial and industrial properties is capped at 2%. However, under Proposition 13 split roll initiative, commercial properties would no longer have the proposition’s protections and could be taxed at a much higher rate. Those opposed to the Proposition 13 initiative suggest it is a targeted tax increase on businesses. Further, they point to the significant increase in local property tax assessments since the implementation of Proposition 13, which amount to $19 billion between 2008-2009 and 2018-2019, as evidence that the proposition is not starving the local government of revenue to which it is due. Advocates for the proposed initiative, however, suggest that the proposition as it is currently written allows businesses to pay less than their fair share of property taxes. The initiative’s supporters tout it as a means to bring much-needed and previously missed-out-on funding to public education in the state. The information contained in the preceding post is meant for general purposes only and should not be considered as legal advice.

While the rental units in a multi-unit residential complex can often look similar, the tenants that occupy them are often very different. Some may like to take long, hot showers, while others may prefer to run their air conditioning units on high nonstop during the summer months. As a landlord, you are in the unenviable position of having to divide up utility costs. Many others in your position have come to us here at Goodkin APC asking how the law requires in this regard. According to the California Department of Consumer Affairs, the first thing you need to do is disclose to tenants before entering into lease agreements that utility meters are shared across units. As such, utility costs will be shared to a certain extent. This will be with the gas and electrical utilities in most structures, as well as the water in older buildings that do not have separate water meters. Most buildings have common areas such as lobbies, hallways and laundry rooms that all tenants share, thus justifying the sharing of the costs to keep those areas both comfortable and functional. Disclosing the cost-sharing plan prior to leasing a unit also lets tenants that they will be splitting the costs of keeping their own units livable with their neighbors (giving those that do not want to the chance to walk away). To split the costs, you can either have the utilities for the building billed to you (and then simply include their costs in monthly rent payments), or you can allow individual tenants to pay for the services are measured through the meters linked to their units (with the understanding that they are sharing the costs of all services in units connected to those meters). More information on handling tenant expenses can be found throughout our site.

While the rental units in a multi-unit residential complex can often look similar, the tenants that occupy them are often very different. Some may like to take long, hot showers, while others may prefer to run their air conditioning units on high nonstop during the summer months. As a landlord, you are in the unenviable position of having to divide up utility costs. Many others in your position have come to us here at Goodkin APC asking how the law requires in this regard. According to the California Department of Consumer Affairs, the first thing you need to do is disclose to tenants before entering into lease agreements that utility meters are shared across units. As such, utility costs will be shared to a certain extent. This will be with the gas and electrical utilities in most structures, as well as the water in older buildings that do not have separate water meters. Most buildings have common areas such as lobbies, hallways and laundry rooms that all tenants share, thus justifying the sharing of the costs to keep those areas both comfortable and functional. Disclosing the cost-sharing plan prior to leasing a unit also lets tenants that they will be splitting the costs of keeping their own units livable with their neighbors (giving those that do not want to the chance to walk away). To split the costs, you can either have the utilities for the building billed to you (and then simply include their costs in monthly rent payments), or you can allow individual tenants to pay for the services are measured through the meters linked to their units (with the understanding that they are sharing the costs of all services in units connected to those meters). More information on handling tenant expenses can be found throughout our site.

Construction sites can be dangerous areas, but when everyone focuses on safety, accidents are easily avoidable. As the business owner, you need to put a prevention plan in place to help stop accidents. With a proper prevention plan, your California construction site has the potential to keep employees safer and put an end to downtime due to incidents. Creating a prevention plan is something eSUB suggests for all construction company owners. While you have many regulations and rules you already follow, this type of strategy enables you to provide an extra layer of protection while also ensuring your employees understand how to stop accidents from occurring and how to work safer on the construction site. Creating your plan You want to put someone in charge of the plan who understands the working conditions and demands of the job. This person may be able to create a realistic document that employees can actually follow. Make sure the document has multiple sections. Dedicate each section to specific aspects of safety, such as first aid, types of risks and personal protective equipment. Once you have the final version, give a copy to every employee and worker. Go over it in a meeting where they can ask questions and get clarification about any new policies or rules. Make sure they understand this is a mandatory plan they must follow. Repeat training on it often to keep it fresh in their minds. Benefits Creating this type of document for your company may help reduce costs associated with accidents, such as loss of equipment, reduced productivity and legal expenses. It may also allow you to be proactive and show your workers you value their safety. Plus, it protects your investments and assets. Making sure your company has an accident prevention plan is a smart move. It benefits you, your workers and your customers through making your worksites safer.

Construction sites can be dangerous areas, but when everyone focuses on safety, accidents are easily avoidable. As the business owner, you need to put a prevention plan in place to help stop accidents. With a proper prevention plan, your California construction site has the potential to keep employees safer and put an end to downtime due to incidents. Creating a prevention plan is something eSUB suggests for all construction company owners. While you have many regulations and rules you already follow, this type of strategy enables you to provide an extra layer of protection while also ensuring your employees understand how to stop accidents from occurring and how to work safer on the construction site. Creating your plan You want to put someone in charge of the plan who understands the working conditions and demands of the job. This person may be able to create a realistic document that employees can actually follow. Make sure the document has multiple sections. Dedicate each section to specific aspects of safety, such as first aid, types of risks and personal protective equipment. Once you have the final version, give a copy to every employee and worker. Go over it in a meeting where they can ask questions and get clarification about any new policies or rules. Make sure they understand this is a mandatory plan they must follow. Repeat training on it often to keep it fresh in their minds. Benefits Creating this type of document for your company may help reduce costs associated with accidents, such as loss of equipment, reduced productivity and legal expenses. It may also allow you to be proactive and show your workers you value their safety. Plus, it protects your investments and assets. Making sure your company has an accident prevention plan is a smart move. It benefits you, your workers and your customers through making your worksites safer.