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Property taxes are assessed on both residential and commercial properties, and the total costs fluctuate every year with the value of those properties. However, they can be quite substantial, with tens of thousands of dollars assessed on major pieces of real estate. Generally speaking, these property taxes have to be paid by whoever owns that property. The real estate investor, who is renting out the space, would then be liable for the tax burden of that property. The tenant who is simply leasing the space has to pay a monthly rent, but they should not have to worry about these additional costs. They just have to stay current on the rent. ADDING A NET That being said, there are certainly ways to set up a commercial lease so that the tenant has to pay the property taxes. One way to do this is with a single-net lease. It simply bundles the property taxes in with the monthly rent, and these obligations are then given to the tenant instead of the property owner. Another option could be to use a double-net lease, which adds property insurance, or a triple-net lease, which adds in the cost of maintenance and upkeep. The key to doing this is to understand your obligations in advance and to set it up this way from the beginning. A landlord who has simply used a basic lease requiring merely rent payments cannot suddenly change their mind and demand payments for property taxes. But if they provide the tenant with a single-net lease at the beginning, then the tenant knows exactly what they are agreeing to and will be liable to cover those costs. To make sure everything goes smoothly, be sure you know what legal steps to take.

Property taxes are assessed on both residential and commercial properties, and the total costs fluctuate every year with the value of those properties. However, they can be quite substantial, with tens of thousands of dollars assessed on major pieces of real estate. Generally speaking, these property taxes have to be paid by whoever owns that property. The real estate investor, who is renting out the space, would then be liable for the tax burden of that property. The tenant who is simply leasing the space has to pay a monthly rent, but they should not have to worry about these additional costs. They just have to stay current on the rent. ADDING A NET That being said, there are certainly ways to set up a commercial lease so that the tenant has to pay the property taxes. One way to do this is with a single-net lease. It simply bundles the property taxes in with the monthly rent, and these obligations are then given to the tenant instead of the property owner. Another option could be to use a double-net lease, which adds property insurance, or a triple-net lease, which adds in the cost of maintenance and upkeep. The key to doing this is to understand your obligations in advance and to set it up this way from the beginning. A landlord who has simply used a basic lease requiring merely rent payments cannot suddenly change their mind and demand payments for property taxes. But if they provide the tenant with a single-net lease at the beginning, then the tenant knows exactly what they are agreeing to and will be liable to cover those costs. To make sure everything goes smoothly, be sure you know what legal steps to take.

There’s no question that the commercial real estate market has weathered significant ups and downs over the past several years. Oftentimes, upping the rent on a property seems like the most obvious way to account for challenging marketplace conditions. Yet, inflating commercial property rents is a risk that isn’t always worth taking. Rental rate inflation above the market rate is always a risky business. But it is often a particularly risky proposition when an anchor tenant is either negotiating an initial rate or is looking to renegotiate a rate that has been inflated historically. IT’S ALL ABOUT RISK VS. REWARD Entering into a commercial lease with a tenant involves a measure of trust. On the one hand, you need to be able to keep your business afloat during challenging times. On the other hand, if your tenant believes that you’re inflating their rent to an unreasonable extent, they may understandably feel like you’re taking advantage of their trust and utilization of your property. The risk vs. reward calculus in this scenario can impact more than just your company’s finances. It can affect your company’s reputation. If your tenants enjoy working with your company and believe that it negotiates rates fairly, those tenants may recommend your services to other potential tenants. If your tenants have concerns that their rental rates are always inflated but that they’re “stuck” with your company because they don’t want to risk losing customers by moving to new locations, they may badmouth your company to other potential tenants. GET HELP WITH YOUR COMMERCIAL REAL ESTATE INVESTMENTS Carefully considering the broader risks vs. rewards of inflating commercial real estate rental rates is consequential business. Researching your options and consulting with professionals may be in your company’s best interests if you’re not sure of which direction to take at any given time.

There’s no question that the commercial real estate market has weathered significant ups and downs over the past several years. Oftentimes, upping the rent on a property seems like the most obvious way to account for challenging marketplace conditions. Yet, inflating commercial property rents is a risk that isn’t always worth taking. Rental rate inflation above the market rate is always a risky business. But it is often a particularly risky proposition when an anchor tenant is either negotiating an initial rate or is looking to renegotiate a rate that has been inflated historically. IT’S ALL ABOUT RISK VS. REWARD Entering into a commercial lease with a tenant involves a measure of trust. On the one hand, you need to be able to keep your business afloat during challenging times. On the other hand, if your tenant believes that you’re inflating their rent to an unreasonable extent, they may understandably feel like you’re taking advantage of their trust and utilization of your property. The risk vs. reward calculus in this scenario can impact more than just your company’s finances. It can affect your company’s reputation. If your tenants enjoy working with your company and believe that it negotiates rates fairly, those tenants may recommend your services to other potential tenants. If your tenants have concerns that their rental rates are always inflated but that they’re “stuck” with your company because they don’t want to risk losing customers by moving to new locations, they may badmouth your company to other potential tenants. GET HELP WITH YOUR COMMERCIAL REAL ESTATE INVESTMENTS Carefully considering the broader risks vs. rewards of inflating commercial real estate rental rates is consequential business. Researching your options and consulting with professionals may be in your company’s best interests if you’re not sure of which direction to take at any given time.

When signing a lease agreement, you want to know that, as a landlord, you and your tenant won’t have any disputes. However, there’s always a chance that, once a tenant enters into an agreement, a problem can arise. Being prepared for a landlord-tenant dispute may help ensure your new tenant isn’t stepping on your toes. Here’s what you should consider: KNOW YOUR RIGHTS The best way to overcome any issue, or prevent an issue before it starts, is to know your rights as a landlord. Landlords have rights when creating a lease agreement, but tenants have just as many rights. For example, you ask your tenant to pay an application fee, no questions asked. Yet, asking about your tenants criminal history may depend on what county or city you live in. Likewise, landlords are to return a security deposit once their tenant vacates the premises, barring any fees that may be used for damages or cleaning. REVIEW YOUR AGREEMENT TERMS While many landlords use similar lease agreement terms, you should still consider reviewing all of its intricacies to ensure you and your new tenant aren’t breaking the agreement. Your agreement may use basic terminology, which could be used against you. But a complex agreement may make things confusing for everyone. If your tenant is unsure what you expect from them, you should discuss the terms of the agreement. KEEP IT IN WRITING When signing a lease agreement, you should ensure you and your tenant keep a hard copy and additional documents. The advantage to this is that, if your tenant believes you’ve violated the terms, you can review and present the agreement. SEEK LEGAL HELP If a tenant does believe you violated the terms of a lease agreement, then you may need to consider reaching out for legal help, especially if you believe you didn’t.

When signing a lease agreement, you want to know that, as a landlord, you and your tenant won’t have any disputes. However, there’s always a chance that, once a tenant enters into an agreement, a problem can arise. Being prepared for a landlord-tenant dispute may help ensure your new tenant isn’t stepping on your toes. Here’s what you should consider: KNOW YOUR RIGHTS The best way to overcome any issue, or prevent an issue before it starts, is to know your rights as a landlord. Landlords have rights when creating a lease agreement, but tenants have just as many rights. For example, you ask your tenant to pay an application fee, no questions asked. Yet, asking about your tenants criminal history may depend on what county or city you live in. Likewise, landlords are to return a security deposit once their tenant vacates the premises, barring any fees that may be used for damages or cleaning. REVIEW YOUR AGREEMENT TERMS While many landlords use similar lease agreement terms, you should still consider reviewing all of its intricacies to ensure you and your new tenant aren’t breaking the agreement. Your agreement may use basic terminology, which could be used against you. But a complex agreement may make things confusing for everyone. If your tenant is unsure what you expect from them, you should discuss the terms of the agreement. KEEP IT IN WRITING When signing a lease agreement, you should ensure you and your tenant keep a hard copy and additional documents. The advantage to this is that, if your tenant believes you’ve violated the terms, you can review and present the agreement. SEEK LEGAL HELP If a tenant does believe you violated the terms of a lease agreement, then you may need to consider reaching out for legal help, especially if you believe you didn’t.

Both the residential and commercial real estate markets have weathered significant turbulence since early 2020. As 2023 dawns, it’s important to assess both current and expected market conditions and trends to better ensure that real estate development decisions made this year are as informed as they can be. One of the primary reasons why it’s so important to make informed decisions at every point in the real estate development process is that short-sighted and ill-informed thinking can lead to legal challenges and negative financial consequences. For example, failing to account for supply chain delays can cause parties to unintentionally breach their duties under a development contract. Anticipating such delays can inspire tiered completion clauses within contract language that protect the interests of all parties. HOPEFUL SIGNS Unfortunately, supply chain issues continue to impact development in every sector. Inflation continues to influence whether various developers are choosing to build or to pause certain projects until costs come down. And although it has been widely predicted that the Fed will stop raising interest rates at some point in 2023, it is likely that they will continue to rise in the coming months. Yet, certain property types are performing well and as the market continues to stabilize, there is hope that the real estate development industry will benefit from increasingly predictable conditions in the near future. Multifamily properties are performing well at present, partially because owners and investors are in a position to adjust rent rates as the market changes. Industrial space is also performing above average as well, given that the evolution of the e-commerce market is such that warehouses and similar spaces are increasingly in high demand from e-commerce operators whose business models have either survived intact or successfully evolved since early 2020. Understanding the ways in which recent economic turbulence is still affecting the market and planning for increased stabilization of market conditions over time seem to be the two primary focuses of many savvy developers as 2023 dawns. By treating these two issues seriously, developers will likely place themselves in the best possible position to succeed in the coming year.

Both the residential and commercial real estate markets have weathered significant turbulence since early 2020. As 2023 dawns, it’s important to assess both current and expected market conditions and trends to better ensure that real estate development decisions made this year are as informed as they can be. One of the primary reasons why it’s so important to make informed decisions at every point in the real estate development process is that short-sighted and ill-informed thinking can lead to legal challenges and negative financial consequences. For example, failing to account for supply chain delays can cause parties to unintentionally breach their duties under a development contract. Anticipating such delays can inspire tiered completion clauses within contract language that protect the interests of all parties. HOPEFUL SIGNS Unfortunately, supply chain issues continue to impact development in every sector. Inflation continues to influence whether various developers are choosing to build or to pause certain projects until costs come down. And although it has been widely predicted that the Fed will stop raising interest rates at some point in 2023, it is likely that they will continue to rise in the coming months. Yet, certain property types are performing well and as the market continues to stabilize, there is hope that the real estate development industry will benefit from increasingly predictable conditions in the near future. Multifamily properties are performing well at present, partially because owners and investors are in a position to adjust rent rates as the market changes. Industrial space is also performing above average as well, given that the evolution of the e-commerce market is such that warehouses and similar spaces are increasingly in high demand from e-commerce operators whose business models have either survived intact or successfully evolved since early 2020. Understanding the ways in which recent economic turbulence is still affecting the market and planning for increased stabilization of market conditions over time seem to be the two primary focuses of many savvy developers as 2023 dawns. By treating these two issues seriously, developers will likely place themselves in the best possible position to succeed in the coming year.

As someone who runs a construction business or works as a contractor in the construction industry, your revenue largely depends on clients paying their invoices in a timely manner. If someone fails to pay you as they should, you have only a few options for pushing them into compliance. One of the most powerful is a mechanic’s lien. You can take a property owner to court over unpaid services rendered or materials provided. You can then record the lien so that the property owner cannot transfer, refinance or sell the property without first paying your company what they owe it. If you go through all the trouble of securing a mechanic’s lien against a property, you obviously have every intention of pushing that owner into paying you as they should. Can they go back to court and remove the lien without paying you? TECHNICAL MISTAKES CAN LEAD TO LIEN REMOVAL There are numerous scenarios in which California state law allows property owners to remove a lien previously granted by the civil courts. The first and most obvious would be when someone has paid the underlying debt but the business refuses to release the lien. However, other technical errors on the part of the construction business could result in the courts removing the lien without the company receiving full payment. Failing to take the necessary action to enforce the lien after the initial judgment could provide a homeowner grounds to request the lien’s removal. There could also be a strong case for the removal of a lien in a case where the business initiated the claim later than the law allows but the courts granted the lien anyway. UNDERSTANDING YOUR RIGHTS AND OBLIGATIONS LEADS TO BETTER OUTCOMES Small mistakes in how you handle the process of obtaining or enforcing a mechanic’s lien on real property will determine whether your company can demand payment using that lien or not. Rather than using some cut-rate, national service with one-size-fits-all options and risking mistakes that could lead to an unfavorable court ruling or an untimely removal of your lien from property records, it may be much better to get direct support for your construction company as you learn about and pursue a construction lean. Making sense of the rules that influence the outcome of business disputes like unpaid construction invoices can help companies make better use of the laws that protect them.

As someone who runs a construction business or works as a contractor in the construction industry, your revenue largely depends on clients paying their invoices in a timely manner. If someone fails to pay you as they should, you have only a few options for pushing them into compliance. One of the most powerful is a mechanic’s lien. You can take a property owner to court over unpaid services rendered or materials provided. You can then record the lien so that the property owner cannot transfer, refinance or sell the property without first paying your company what they owe it. If you go through all the trouble of securing a mechanic’s lien against a property, you obviously have every intention of pushing that owner into paying you as they should. Can they go back to court and remove the lien without paying you? TECHNICAL MISTAKES CAN LEAD TO LIEN REMOVAL There are numerous scenarios in which California state law allows property owners to remove a lien previously granted by the civil courts. The first and most obvious would be when someone has paid the underlying debt but the business refuses to release the lien. However, other technical errors on the part of the construction business could result in the courts removing the lien without the company receiving full payment. Failing to take the necessary action to enforce the lien after the initial judgment could provide a homeowner grounds to request the lien’s removal. There could also be a strong case for the removal of a lien in a case where the business initiated the claim later than the law allows but the courts granted the lien anyway. UNDERSTANDING YOUR RIGHTS AND OBLIGATIONS LEADS TO BETTER OUTCOMES Small mistakes in how you handle the process of obtaining or enforcing a mechanic’s lien on real property will determine whether your company can demand payment using that lien or not. Rather than using some cut-rate, national service with one-size-fits-all options and risking mistakes that could lead to an unfavorable court ruling or an untimely removal of your lien from property records, it may be much better to get direct support for your construction company as you learn about and pursue a construction lean. Making sense of the rules that influence the outcome of business disputes like unpaid construction invoices can help companies make better use of the laws that protect them.

As a commercial real estate owner, it’s important to you to keep tenants in your properties. For one thing, you need to make sure that all of your costs are covered. Additionally, you care about that local community and you want to see businesses thrive. However, one of your business owners may want to break their lease early. Since this is a legally binding document, they can’t just decide to stop paying you and leave the space. So how can they do this and what steps do they need to take? ARE THERE ANY TERMINATION CLAUSES? One of the first things to think about is if the lease has any termination language, such as clauses saying when that lease can be broken early. For instance, some business owners will request a termination clause saying that they can walk away from the space if they don’t hit earning projections over the first year. This protects them if it turns out that the space is not a good fit for their business. ARE YOU WILLING TO WORK WITH THEM? Even if there are no termination clauses, if the tenant is serious about wanting to leave the property, you may be able to work with them to find a tactic that benefits both of you. For example, some landlords will request that tenants find people to sublease the space for the rest of the term of that lease. Other landlords will allow them to break the lease early if they’ll pay for an extra few months, during which that landlord can find another tenant for the space. What you decide to do is up to you, but you may have to ensure that it fits your needs and follows all of the proper legal steps.

As a commercial real estate owner, it’s important to you to keep tenants in your properties. For one thing, you need to make sure that all of your costs are covered. Additionally, you care about that local community and you want to see businesses thrive. However, one of your business owners may want to break their lease early. Since this is a legally binding document, they can’t just decide to stop paying you and leave the space. So how can they do this and what steps do they need to take? ARE THERE ANY TERMINATION CLAUSES? One of the first things to think about is if the lease has any termination language, such as clauses saying when that lease can be broken early. For instance, some business owners will request a termination clause saying that they can walk away from the space if they don’t hit earning projections over the first year. This protects them if it turns out that the space is not a good fit for their business. ARE YOU WILLING TO WORK WITH THEM? Even if there are no termination clauses, if the tenant is serious about wanting to leave the property, you may be able to work with them to find a tactic that benefits both of you. For example, some landlords will request that tenants find people to sublease the space for the rest of the term of that lease. Other landlords will allow them to break the lease early if they’ll pay for an extra few months, during which that landlord can find another tenant for the space. What you decide to do is up to you, but you may have to ensure that it fits your needs and follows all of the proper legal steps.