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You know you want to develop commercial properties, but you have little experience in the field. Could a checklist help you experience peace of mind? Crexi offers tips for reducing risk when investing in business properties. Understand how to protect your time and energy when investing. Check building systems Have experienced professionals familiar with the latest building codes in California inspect all building systems, such as plumbing, structural, electrical, roofing, HVAC and windows. Beyond learning the party paying bills, understand how the local utilities department meters and delivers utilities. Research property details Learn the property type you want to develop or invest in, the lot and building size, the number of units and the number of floors the building has. Once you have that information, check it against the details received from the seller or broker for accuracy. Investigate details that do not match what the seller or broker provided. Collect tenant information If the commercial building already has tenants, ask for details such as utility payments, rent and security deposits. Double-check the information against the rent schedule, and look for the opportunity to extend a lease that the broker or seller did not mention. Perform inspections and look over reports Do you want to invest in a sizable multifamily community? If so, take time to get to know every vendor with a hand in taking care of the property. That may include electricians, property managers, pest inspectors, environmental consultants and plumbers. Further, review such documents as legal violations, legal actions involving the seller, building permits and the title report. Leave no stone unturned when taking over commercial real estate. Proper due diligence may save you considerable time and money.

You know you want to develop commercial properties, but you have little experience in the field. Could a checklist help you experience peace of mind? Crexi offers tips for reducing risk when investing in business properties. Understand how to protect your time and energy when investing. Check building systems Have experienced professionals familiar with the latest building codes in California inspect all building systems, such as plumbing, structural, electrical, roofing, HVAC and windows. Beyond learning the party paying bills, understand how the local utilities department meters and delivers utilities. Research property details Learn the property type you want to develop or invest in, the lot and building size, the number of units and the number of floors the building has. Once you have that information, check it against the details received from the seller or broker for accuracy. Investigate details that do not match what the seller or broker provided. Collect tenant information If the commercial building already has tenants, ask for details such as utility payments, rent and security deposits. Double-check the information against the rent schedule, and look for the opportunity to extend a lease that the broker or seller did not mention. Perform inspections and look over reports Do you want to invest in a sizable multifamily community? If so, take time to get to know every vendor with a hand in taking care of the property. That may include electricians, property managers, pest inspectors, environmental consultants and plumbers. Further, review such documents as legal violations, legal actions involving the seller, building permits and the title report. Leave no stone unturned when taking over commercial real estate. Proper due diligence may save you considerable time and money.

As Los Angeles continues to struggle with an affordable housing crisis, the Department of Building and Safety and Mayor Eric Garcetti have introduced a program designed to offer fast approval for Accessory Dwelling Units. Developers who wish to build these structures can receive one-day permits for 20 approved design options, compared to up to six weeks for a standard permit. Review the terms of the ADU Standard Plan Program, poised to change the short-term landscape of Los Angeles real estate. Basics of the ADU program Contractors, architects and other real estate developers in Los Angeles can enroll simply by meeting the requirements outlined in the approved standard plans for the ADU program. Participating firms will have direct contact with the architects of the available design options, including the 10 local firms with an eventual total of 28 approved designs. Available properties Interested investors, landlords and other ADU owners have options that fit a variety of residents. ADU plans range from studios starting at just 309 square feet to two-story homes of more than 1,100 square feet. Add-on options include outdoor features such as covered patios and decks. ADU accelerator program Under a related program introduced by the Mayor’s office in 2019, Los Angeles has attempted to improve housing stability for older adults. Landlords who have eligible ADU units can sign up to offer these rentals to qualified seniors in exchange for stable rental income and landlord-tenant case management. As the city implements creative solutions to address housing affordability, real estate developers can benefit from these initiatives while supporting the community with access to affordable ADUs.

As Los Angeles continues to struggle with an affordable housing crisis, the Department of Building and Safety and Mayor Eric Garcetti have introduced a program designed to offer fast approval for Accessory Dwelling Units. Developers who wish to build these structures can receive one-day permits for 20 approved design options, compared to up to six weeks for a standard permit. Review the terms of the ADU Standard Plan Program, poised to change the short-term landscape of Los Angeles real estate. Basics of the ADU program Contractors, architects and other real estate developers in Los Angeles can enroll simply by meeting the requirements outlined in the approved standard plans for the ADU program. Participating firms will have direct contact with the architects of the available design options, including the 10 local firms with an eventual total of 28 approved designs. Available properties Interested investors, landlords and other ADU owners have options that fit a variety of residents. ADU plans range from studios starting at just 309 square feet to two-story homes of more than 1,100 square feet. Add-on options include outdoor features such as covered patios and decks. ADU accelerator program Under a related program introduced by the Mayor’s office in 2019, Los Angeles has attempted to improve housing stability for older adults. Landlords who have eligible ADU units can sign up to offer these rentals to qualified seniors in exchange for stable rental income and landlord-tenant case management. As the city implements creative solutions to address housing affordability, real estate developers can benefit from these initiatives while supporting the community with access to affordable ADUs.

Finding renters for your property is arguably one of your biggest challenges as a landlord. Establishing your expectations early on can hopefully minimize discord and encourage compliance. As you consider renters, use tenant screening to help you identify potential risks. When you learn as much about people as possible prior to accepting them as tenants, you can make a more informed and confident decision. Aspects of screening Tenant screening can include a variety of aspects. According to Allstate, ask potential tenants for references. Look at their background and credit history. Assessing such aspects can teach you a lot about people including the following: Whether or not they were formerly evicted Whether or not other tenants complained about them Whether or not they have pending criminal charges or a criminal record Whether or not they had difficulty paying rent in the past While a tenant screening will not uncover everything there is to know about individuals, it can give you a pretty clear picture of what you will deal with. Drawing upon the information you learn; you can assess the risks and determine if prospective tenants will be a good fit for your property. Handling conflict Even with tenant screening, you may approve renters that you find challenging to deal with later on. The way you handle disputes can make or break the relationship. One thing you can do is include a clause discussing disputes in your rental agreement. Do your best to maintain open communication with your tenants. If conflict ever escalates to the point where you feel threatened, you may need to scale back and rely on the authorities to assist you.

Finding renters for your property is arguably one of your biggest challenges as a landlord. Establishing your expectations early on can hopefully minimize discord and encourage compliance. As you consider renters, use tenant screening to help you identify potential risks. When you learn as much about people as possible prior to accepting them as tenants, you can make a more informed and confident decision. Aspects of screening Tenant screening can include a variety of aspects. According to Allstate, ask potential tenants for references. Look at their background and credit history. Assessing such aspects can teach you a lot about people including the following: Whether or not they were formerly evicted Whether or not other tenants complained about them Whether or not they have pending criminal charges or a criminal record Whether or not they had difficulty paying rent in the past While a tenant screening will not uncover everything there is to know about individuals, it can give you a pretty clear picture of what you will deal with. Drawing upon the information you learn; you can assess the risks and determine if prospective tenants will be a good fit for your property. Handling conflict Even with tenant screening, you may approve renters that you find challenging to deal with later on. The way you handle disputes can make or break the relationship. One thing you can do is include a clause discussing disputes in your rental agreement. Do your best to maintain open communication with your tenants. If conflict ever escalates to the point where you feel threatened, you may need to scale back and rely on the authorities to assist you.

Finding tenants for your rental property in California can be one of the trickiest parts of investment real estate. Reliable renters can reduce the need to find new tenants and protect you from vacancy costs. Good renters who want to extend their lease also give you the opportunity to negotiate a higher rent cost. The key to preventing bad tenants from moving in is the kinds of strategies you use throughout the screening process. Ask the right questions Asking questions is an excellent way to learn more about someone. However, you have to practice care in deciding which questions to ask prospective tenants. This is because the Fair Housing Act prohibits illegal questions based on a person’s race, gender, sexual orientation, disability and other conditions. According to The Motley Fool, you can ask questions about why they wish to move from their current residence, if they can afford your costs and whether or not they have pets. You can also ask permission to contact former landlords and whether or not a prospective tenant has recently filed for bankruptcy protection. Questions about pending criminal charges, past evictions, income stability and the number of people planning to move in can help you make a confident decision about how to proceed. Outline your expectations Another helpful way to encourage good tenants to rent your property is to clearly outline your expectations. Discuss the terms and conditions in your contract and the consequences of a broken lease agreement. Inform prospective tenants of how you will proceed with an eviction if they do not honor the contractual agreement in place. Outlining your expectations from the start can encourage your tenants to abide by your terms and avoid unruly behavior.

Finding tenants for your rental property in California can be one of the trickiest parts of investment real estate. Reliable renters can reduce the need to find new tenants and protect you from vacancy costs. Good renters who want to extend their lease also give you the opportunity to negotiate a higher rent cost. The key to preventing bad tenants from moving in is the kinds of strategies you use throughout the screening process. Ask the right questions Asking questions is an excellent way to learn more about someone. However, you have to practice care in deciding which questions to ask prospective tenants. This is because the Fair Housing Act prohibits illegal questions based on a person’s race, gender, sexual orientation, disability and other conditions. According to The Motley Fool, you can ask questions about why they wish to move from their current residence, if they can afford your costs and whether or not they have pets. You can also ask permission to contact former landlords and whether or not a prospective tenant has recently filed for bankruptcy protection. Questions about pending criminal charges, past evictions, income stability and the number of people planning to move in can help you make a confident decision about how to proceed. Outline your expectations Another helpful way to encourage good tenants to rent your property is to clearly outline your expectations. Discuss the terms and conditions in your contract and the consequences of a broken lease agreement. Inform prospective tenants of how you will proceed with an eviction if they do not honor the contractual agreement in place. Outlining your expectations from the start can encourage your tenants to abide by your terms and avoid unruly behavior.

You have every right to start eviction proceedings when a tenant fails to pay rent, but in some situations, you may want to try something else before you take this step. This is especially true if you have a positive history with the tenant or are aware that he or she has become unexpectedly insolvent. However, you should react to protect yourself. Mondaq explains that you want to minimize your loss in this situation, which means you should consider your next moves carefully. You do have a few options beyond filing an eviction. Change lease terms You can alter the lease to make it easier for the tenant to conclude his or her business and vacate the premises. Commercial leases often have conditions that can make it hard for a tenant to wrap up a business. You can waive certain requirements to allow the tenant to more quickly close the business and move on. End the lease early If you fear your tenant will file bankruptcy, then you may consider ending the lease early. You may have to pay to get out of the lease, but that may not be as much as you would lose if you wait things out. Once the tenant files, it will be difficult to get them out of the space so that you can find new tenants. Grant relief If the tenant has always been good about paying rent on time and you can afford it, you could simply offer to defer or even forgive late payments. If you do this, you will need to make the exact terms clear to the tenant. Do not allow room for the tenant to later claim that you removed the obligation to ever pay rent again.

You have every right to start eviction proceedings when a tenant fails to pay rent, but in some situations, you may want to try something else before you take this step. This is especially true if you have a positive history with the tenant or are aware that he or she has become unexpectedly insolvent. However, you should react to protect yourself. Mondaq explains that you want to minimize your loss in this situation, which means you should consider your next moves carefully. You do have a few options beyond filing an eviction. Change lease terms You can alter the lease to make it easier for the tenant to conclude his or her business and vacate the premises. Commercial leases often have conditions that can make it hard for a tenant to wrap up a business. You can waive certain requirements to allow the tenant to more quickly close the business and move on. End the lease early If you fear your tenant will file bankruptcy, then you may consider ending the lease early. You may have to pay to get out of the lease, but that may not be as much as you would lose if you wait things out. Once the tenant files, it will be difficult to get them out of the space so that you can find new tenants. Grant relief If the tenant has always been good about paying rent on time and you can afford it, you could simply offer to defer or even forgive late payments. If you do this, you will need to make the exact terms clear to the tenant. Do not allow room for the tenant to later claim that you removed the obligation to ever pay rent again.

Easements give other people some right to your property. This may seem unfair, but according to SFGate, easements are a fixture in property law, and they prevent a property from becoming worthless due to lack of access. There are many ways that someone may create an easement, and if you do not control the process, it could result in loss of rights to your own land. Providing access to another property If a person or entity on the other side of your property does not have access to a public road except by going across your property, an easement may be necessary. By granting an easement, you can control how and when the neighbor can use your property. Because you are voluntarily allowing the easement, you can put terms and conditions for the use in writing and legally limit your neighbor’s access to the minimum amount necessary. Allowing use without your knowledge You may have an easement on your property without knowing it. If the person who owned the property before you divided the land and sold it to you and another person, there may already be a private road in place. Your neighbor could be using the road without either of you knowing that he or she is using your property. If your neighbor’s property is commercial real estate and significant traffic or even heavy equipment crosses your property, it could take a toll on your land. Not only that, if your neighbor takes certain steps, you could lose your rights to control the land. Becoming a permanent legal easement A prescriptive easement occurs when your neighbor uses your land continuously for five years without your consent, and a reasonable person would have known that it was happening. A court may then rule that your neighbor’s use is legal, even though you never granted an easement. Thus, you cannot claim your neighbor is trespassing on your land if you decide you do not want the use to continue. Reviewing your property boundaries on the official description in the deed can help you to see where an implied easement may exist so that you can set your own parameters on its use.

Easements give other people some right to your property. This may seem unfair, but according to SFGate, easements are a fixture in property law, and they prevent a property from becoming worthless due to lack of access. There are many ways that someone may create an easement, and if you do not control the process, it could result in loss of rights to your own land. Providing access to another property If a person or entity on the other side of your property does not have access to a public road except by going across your property, an easement may be necessary. By granting an easement, you can control how and when the neighbor can use your property. Because you are voluntarily allowing the easement, you can put terms and conditions for the use in writing and legally limit your neighbor’s access to the minimum amount necessary. Allowing use without your knowledge You may have an easement on your property without knowing it. If the person who owned the property before you divided the land and sold it to you and another person, there may already be a private road in place. Your neighbor could be using the road without either of you knowing that he or she is using your property. If your neighbor’s property is commercial real estate and significant traffic or even heavy equipment crosses your property, it could take a toll on your land. Not only that, if your neighbor takes certain steps, you could lose your rights to control the land. Becoming a permanent legal easement A prescriptive easement occurs when your neighbor uses your land continuously for five years without your consent, and a reasonable person would have known that it was happening. A court may then rule that your neighbor’s use is legal, even though you never granted an easement. Thus, you cannot claim your neighbor is trespassing on your land if you decide you do not want the use to continue. Reviewing your property boundaries on the official description in the deed can help you to see where an implied easement may exist so that you can set your own parameters on its use.