Real estate dispute over lake involves state of California

Live/work spaces have become increasingly popular in recent years – particularly in cities like Los Angeles where real estate prices are among the highest in the country. However, it’s not really a new concept. People have lived above their stores, bars, restaurants and other businesses for centuries. Zoning laws, however, are much stricter than they used to be. Cities have zoning laws in part to protect property values. Many areas are zoned strictly for residential or commercial use. They can also be zoned as historic areas or for industrial or agricultural use. Some do allow a combination of residential and commercial use, with certain limits, like what kind of business can be conducted. These are known as mixed-used zones. Can you let a tenant live in a space they rent for their business? What if you are renting out a commercial property and your renter asks to live there? They’ll pay you extra, and you’ll have someone there during the night, so this might actually be a deterrent to crime. But is that legal? It depends. It’s crucial to check the zoning ordinances for the area. If it’s zoned only for commercial property, you may be able to get a permit. However, you’ll need to check with your insurance company to determine whether your policy covers something that might go wrong. What happens if your tenant leaves something on the stove and starts a fire or lets the bathtub overflow? You might not be covered for the damage. If you go ahead and let a tenant live in a commercial space without getting the proper authorization, you risk fines if the authorities find out. Further, if your tenant is injured or killed by an intruder in the middle of the night, you could face civil and/or criminal liability if the space wasn’t meant for someone to live in. Whether you want to live in a commercial property you own or you’re considering letting a commercial tenant use their space to live and work in, it’s crucial to determine the zoning restrictions for your area. Trying to get around them can only lead to problems. If you are facing legal issues involving the misuse of commercial property for residential purposes (or vice versa), it’s important to seek experienced guidance.

A watertight commercial lease agreement is a must-have document for property and business owners alike. Being a legally binding agreement, a commercial lease needs to be accurately drafted within the California commercial rental property laws. In addition, it must be updated on a regular basis to ensure that landlord-tenant disputes are kept to a minimum. Understanding the components of a commercial lease agreement is critical to the smooth relations between the tenant and the landlord. Here are some of the provisions that should be included in a commercial lease agreement. The parties to the contract Every contract must clearly outline the parties to it. While signing the agreement, it is important that you do so on behalf of your business rather than as an individual. It is not unusual for a commercial lease to require a personal guarantee. If you are the business owner, it is important that you find out the limitations of the personal guarantee such as time or dollar limitations. Contract terms While most residential lease contracts are valid for 12 months, commercial lease contracts can last for as long as 10 years or even more. Before signing a commercial lease contract, it is important that you consider both the initial term as well as the renewal rights. A lease contract might automatically grant renewal rights to the tenant while others may require both parties’ mutual consent before renewal. While considering terms, it is also important that you understand what will happen to the rental payments upon renewal. Rent payment terms Besides negotiating the rent amount it is important that both parties review other expenses related to the property in question and clearly state who will pay for them. Common expenses in commercial property may include maintenance fees, utilities, taxes, and insurance. Since these expenses are usually passed on to the tenants, it is important to understand how they are calculated and divided among the existing tenants. A lease contract outlines the duties and responsibilities of both parties and minimizes disputes. Before signing a commercial lease contract, it is important that you understand the provisions you are getting into.

After identifying your business premises, you may want to sign the lease and secure the property immediately. However, it may not be the best way to go about things. Even if the landlord asks you to sign a standard agreement, it is in your best interests to refrain from signing any legally binding contract before carefully reviewing it. Ensuring that your lease agreement does not contravene local property laws is a good place to start. Then you need to understand all the terms and conditions in the agreement, especially those masked in legal jargon. Below are some terms to look out for, and if they are part of your lease agreement, you should consider not signing. 1. Making your security deposit non-refundable Most landlords ask for a one to three-month deposit, but it is usually refundable upon the end of the contract. Watch out for clauses that imply you may not get it back. 2. Granting the landlord unlimited access As the tenant, you have a right to privacy and quiet enjoyment of the property leased. Don’t sign a lease that gives the landlord unrestricted access to the property whenever they wish. 3. Requiring the tenant to be responsible for all maintenance You should not sign a lease that puts all maintenance responsibility on yourself. The landlord should cover maintenance costs that make the property habitable such as a leaking roof or plumbing issues. Agreeing to bear all expenses related to maintenance could be a costly decision for you or your business if anything goes wrong. Protecting yourself means being conversant with real estate law pertaining to lease agreements. Doing so will ensure that the lease you sign is not a burden for you in the future.