Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

Owning a rental property is a great investment. However, it is not unusual for a landlord to get into a dispute with their tenant. A tenant may feel the landlord is too bossy or strict, while the landlord may discover that the tenant is anything but what they hoped they would be. Multiple factors can contribute to disputes between landlords and their tenants. These can range from violations of the terms of the lease contract to the use of the rental property for unintended purposes. Here are some of the common landlord-tenant disputes that you need to look out for. Rent payment issues Rent non-payment or delay is by far the most common trigger of landlord-tenant disagreements. Rent-related disputes can be caused by several factors, such as: When the tenant falls behind on rent or does not pay at all When the tenant starts sending bad checks or lying about rent payment When the landlord fails to follow through with routine repairs and maintenance resulting in the tenant withholding rent Tip: To help address the issue of rent payment, the landlord can clarify when the rent should be due and what is considered late payment in the lease contract. The tenant, on the other hand, has the duty to report any repair issues or potential emergency situations that may hinder them from paying rent on time. Habitability issues Legally, the tenant has the right to a habitable premise. This means that the landlord is obligated to keep the rental unit clean and habitable, along with timely repair of defective conditions and complying with health and safety codes for rental facilities. Habitability issues can become an item of conflict if the landlord believes their rental unit is habitable while the tenant feels otherwise. It is important that both parties are aware of the HUD guide on premise habitability. Every landlord dreams of a trouble-free tenant who pays their rent on time and lives at peace with their neighbors. Every tenant, on the other hand, hopes for an understanding landlord who honors their end of the bargain and keeps the premise in a habitable condition. Understanding the common causes of landlord-tenant disputes can help both parties get into a contractual agreement that works for everyone.

Last month, Gov. Gavin Newsom signed two bills into law that are aimed at providing more housing in some areas in a state where demand often exceeds supply – by as much as 3.5 million units according to some estimates. Both laws, which will increase housing density in some areas, have their critics. However, Senate Bill (SB) 9 has been the more controversial of the two. (The other allows more density of housing near mass transit hubs.) What does SB 9 do? Under the new law, which takes effect Jan. 1, 2022, lots in some areas that are zoned for single standalone homes can have up to four units of housing. There are some limits, though. For example, current tenants cannot be required to move, and the owner must continue to reside on the property for at least three years. Gov. Newsom and those in favor of the law tout it as a step toward making more affordable housing available for Californians and decreasing the racial wealth gap in the state. However, a recent study by the University of California Berkeley found that it won’t affect most single-family-zoned lots in the state. Cities speak out about the loss of local authority Not surprisingly, a number of cities as well as the League of California Cities have objected to the authority the law takes away from them. The League’s executive director said that it “undermines the ability of local governments to responsibly plan for the types of housing that communities need, circumvents the local government review process, and silences community voices.” She also points out that although proponents of the law talk about it creating more affordable housing, it says nothing about pricing limits for any new units created. Because of pressure from city governments, provisions were added to SB 9 to allow them to prevent construction if it would endanger public health or safety or if it’s being done simply to help speculators. What does the new law mean for you? The new law will no doubt affect real estate investors, developers, builders and other stakeholders. Experienced guidance can help you prevent any legal issues on your projects.

Last month, Gov. Gavin Newsom signed two bills into law that are aimed at providing more housing in some areas in a state where demand often exceeds supply – by as much as 3.5 million units according to some estimates. Both laws, which will increase housing density in some areas, have their critics. However, Senate Bill (SB) 9 has been the more controversial of the two. (The other allows more density of housing near mass transit hubs.) What does SB 9 do? Under the new law, which takes effect Jan. 1, 2022, lots in some areas that are zoned for single standalone homes can have up to four units of housing. There are some limits, though. For example, current tenants cannot be required to move, and the owner must continue to reside on the property for at least three years. Gov. Newsom and those in favor of the law tout it as a step toward making more affordable housing available for Californians and decreasing the racial wealth gap in the state. However, a recent study by the University of California Berkeley found that it won’t affect most single-family-zoned lots in the state. Cities speak out about the loss of local authority Not surprisingly, a number of cities as well as the League of California Cities have objected to the authority the law takes away from them. The League’s executive director said that it “undermines the ability of local governments to responsibly plan for the types of housing that communities need, circumvents the local government review process, and silences community voices.” She also points out that although proponents of the law talk about it creating more affordable housing, it says nothing about pricing limits for any new units created. Because of pressure from city governments, provisions were added to SB 9 to allow them to prevent construction if it would endanger public health or safety or if it’s being done simply to help speculators. What does the new law mean for you? The new law will no doubt affect real estate investors, developers, builders and other stakeholders. Experienced guidance can help you prevent any legal issues on your projects.

When considering options for commercial spaces that suit your business needs, it is also important to contemplate possible complications. It is preferable to uncover any potential problems before entering an agreement, rather than further down the line. Often, negotiations over a commercial lease will run smoothly. However, on occasion, issues will arise that could potentially impact the requirements of your business. Outlined below are some important factors to consider before entering a commercial lease. How will the space be used? It may seem obvious, but it is important that all parties are fully aware of how the commercial space is going to be used. Real estate owners often have to consider how the new business will fit in with corporations that are already established in the area. Occasionally, there are some types of businesses that a commercial real estate owner will simply not sign their property over to. What are the operating costs of the building? Frequently, business operators absorb the entire cost of using the building. On the other hand, this is not always the case. It is not uncommon for businesses to share commercial properties, which in turn could mean they must share the operating costs of the setting. It is important to consider the financial impact that any operating costs could have on your business. Who is responsible for maintenance? Tennants and commercial real estate owners may have different ideas about who will take on the responsibility of maintenance throughout a lease. There are some business operators who may be keen to make changes and improve the environment for customers. However, other businesses may operate in a manner that involves fewer face-to-face interactions, making the aesthetics of the environment a lesser priority. Ironing out who is responsible for repairs early in the negotiation process could prevent commercial disputes at a later date. Giving careful thought to these key issues before entering a commercial lease could be in your best interests. As a business owner in California, it is important to remember that you have legal rights.

When considering options for commercial spaces that suit your business needs, it is also important to contemplate possible complications. It is preferable to uncover any potential problems before entering an agreement, rather than further down the line. Often, negotiations over a commercial lease will run smoothly. However, on occasion, issues will arise that could potentially impact the requirements of your business. Outlined below are some important factors to consider before entering a commercial lease. How will the space be used? It may seem obvious, but it is important that all parties are fully aware of how the commercial space is going to be used. Real estate owners often have to consider how the new business will fit in with corporations that are already established in the area. Occasionally, there are some types of businesses that a commercial real estate owner will simply not sign their property over to. What are the operating costs of the building? Frequently, business operators absorb the entire cost of using the building. On the other hand, this is not always the case. It is not uncommon for businesses to share commercial properties, which in turn could mean they must share the operating costs of the setting. It is important to consider the financial impact that any operating costs could have on your business. Who is responsible for maintenance? Tennants and commercial real estate owners may have different ideas about who will take on the responsibility of maintenance throughout a lease. There are some business operators who may be keen to make changes and improve the environment for customers. However, other businesses may operate in a manner that involves fewer face-to-face interactions, making the aesthetics of the environment a lesser priority. Ironing out who is responsible for repairs early in the negotiation process could prevent commercial disputes at a later date. Giving careful thought to these key issues before entering a commercial lease could be in your best interests. As a business owner in California, it is important to remember that you have legal rights.

Leasing out commercial premises can bring in good money. Yet, if your lease agreement is not up to scratch, the cost to your tranquility and finances can leave you wishing you had never bothered. When you build property, you have a vision of how people will use it. To ensure that is what happens, you need to translate the thoughts from your head to paper. Expecting a client to abide by something you failed to specify is asking for trouble, and if it goes to court, you would probably lose. The clearer a lease agreement, the less likely you have problems Here are a few things to bear in mind when drawing up a commercial lease: Clarify exclusions: If bills and maintenance are extra, you need to say so in the agreement. Only putting what you do include increases the chance of a misunderstanding. Clarify time and price restrictions: You plan to rent the premises for a year to a local restauranteur to get the place a name, then, once customers know this is the building to come for great food, raise the rent. Defining the length of the contract and your options to raise the price is crucial from the outset. Clarify the types of business you will accept: If you envision your new mall having a classy vibe, you need to think carefully about how you word your contract. You cannot discriminate based on class or income. Yet, you can include careful wording to ensure no one sets up fast food joints and sex shops in your mall. Getting help to ensure the wording of your commercial lease agreement covers everything you need is far easier than dealing with the fallout of a lease dispute because it does not.

Leasing out commercial premises can bring in good money. Yet, if your lease agreement is not up to scratch, the cost to your tranquility and finances can leave you wishing you had never bothered. When you build property, you have a vision of how people will use it. To ensure that is what happens, you need to translate the thoughts from your head to paper. Expecting a client to abide by something you failed to specify is asking for trouble, and if it goes to court, you would probably lose. The clearer a lease agreement, the less likely you have problems Here are a few things to bear in mind when drawing up a commercial lease: Clarify exclusions: If bills and maintenance are extra, you need to say so in the agreement. Only putting what you do include increases the chance of a misunderstanding. Clarify time and price restrictions: You plan to rent the premises for a year to a local restauranteur to get the place a name, then, once customers know this is the building to come for great food, raise the rent. Defining the length of the contract and your options to raise the price is crucial from the outset. Clarify the types of business you will accept: If you envision your new mall having a classy vibe, you need to think carefully about how you word your contract. You cannot discriminate based on class or income. Yet, you can include careful wording to ensure no one sets up fast food joints and sex shops in your mall. Getting help to ensure the wording of your commercial lease agreement covers everything you need is far easier than dealing with the fallout of a lease dispute because it does not.

If there’s one word that describes the Los Angeles area (and of course, there are many), it’s “sprawling.” Commercial and residential development has moved further away from downtown Los Angeles and the primary areas where people lived and worked throughout at least the first half of the 20th century. Rather than continue to build further outward, the Governor’s Office of Planning and Research has been working to support what’s known as “infill development” or sometimes “compact development.” That means building within existing developments, often in urban areas, on unused or underused land. The advantages of infill development Infill development has a number of advantages for the people and the environment of Los Angeles (and other cities where it’s used). For example, it reduces the need for people to drive their cars to and from work and other activities. They’re more likely to use public transportation or “active” transportation like bicycles. Both of these options reduce greenhouse gas emissions. It also means that less agricultural land, including sensitive habitats, has to be converted to commercial and residential development. It also lowers the costs of building and maintaining infrastructure. Infill development also helps people create a neighborhood feel that’s often lacking – particularly in more urban areas. When people live, work and socialize in a more compact area, they’re more likely to develop a sense of community. What qualifies as an “infill site” in California? Under state law, the site needs to meet at least one of the following requirements: Be in an area “previously developed for qualified urban uses” Be adjacent to land developed with qualified urban uses Have at least 75% of the land surrounding it developed with qualified urban uses Under the California Environmental Quality Act, qualified urban uses include “any residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.” The law now includes industrial use in that definition as well. If you’re interested in infill development and making sure that your development meets the state and local requirements to qualify, then you’ll likely want guidance. This will ensure that you don’t unnecessarily expose yourself to legal liability.

If there’s one word that describes the Los Angeles area (and of course, there are many), it’s “sprawling.” Commercial and residential development has moved further away from downtown Los Angeles and the primary areas where people lived and worked throughout at least the first half of the 20th century. Rather than continue to build further outward, the Governor’s Office of Planning and Research has been working to support what’s known as “infill development” or sometimes “compact development.” That means building within existing developments, often in urban areas, on unused or underused land. The advantages of infill development Infill development has a number of advantages for the people and the environment of Los Angeles (and other cities where it’s used). For example, it reduces the need for people to drive their cars to and from work and other activities. They’re more likely to use public transportation or “active” transportation like bicycles. Both of these options reduce greenhouse gas emissions. It also means that less agricultural land, including sensitive habitats, has to be converted to commercial and residential development. It also lowers the costs of building and maintaining infrastructure. Infill development also helps people create a neighborhood feel that’s often lacking – particularly in more urban areas. When people live, work and socialize in a more compact area, they’re more likely to develop a sense of community. What qualifies as an “infill site” in California? Under state law, the site needs to meet at least one of the following requirements: Be in an area “previously developed for qualified urban uses” Be adjacent to land developed with qualified urban uses Have at least 75% of the land surrounding it developed with qualified urban uses Under the California Environmental Quality Act, qualified urban uses include “any residential, commercial, public institutional, transit or transportation passenger facility, or retail use, or any combination of those uses.” The law now includes industrial use in that definition as well. If you’re interested in infill development and making sure that your development meets the state and local requirements to qualify, then you’ll likely want guidance. This will ensure that you don’t unnecessarily expose yourself to legal liability.

A lot of boundary disputes involve fences. For instance, you may believe that the new fence that the business owner who owns the property next to yours just put up is actually on the wrong lot. You think it’s a few yards onto your property, essentially allowing that person to “steal” the land. Now, this could be intentional or it could be an accident. You don’t know, but you still understand that the lot line needs to be respected and the fence needs to be moved. In some cases, though, you may have an issue with a fence that is on your neighbor’s property, but that still negatively impacts the value of your property. This is sometimes known as a spite fence, and it may be illegal. How it works A spite fence is one that is designed to be unsightly. It has no purpose and is not useful, but it has been built specifically to harm your property value. There is a level of malicious intent in this construction; i.e., it was built out of spite. For example, the neighboring business has a fence on your property. You ask them to move it. They’re angry, since this will be a very expensive process, but they can’t deny that you are correct. It is on your land. When they move it, they extend it upward. Instead of a five-foot fence marking the line, they erect a 20-foot fence. Clearly, the goal here is to box in your property, ruin your view, and hide your business from the street. They’re doing it to make your property less attractive and to cost you business. Even if the fence is technically on their land now, they’ve taken steps to ensure that it has a negative impact on your life and your company. What should you do? You can imagine how frustrating this would be on a daily basis and how much the value of your property would plunge if you were looking to sell. That causes real financial harm. You must be sure that you know what legal steps you can take to put a stop to it.

A lot of boundary disputes involve fences. For instance, you may believe that the new fence that the business owner who owns the property next to yours just put up is actually on the wrong lot. You think it’s a few yards onto your property, essentially allowing that person to “steal” the land. Now, this could be intentional or it could be an accident. You don’t know, but you still understand that the lot line needs to be respected and the fence needs to be moved. In some cases, though, you may have an issue with a fence that is on your neighbor’s property, but that still negatively impacts the value of your property. This is sometimes known as a spite fence, and it may be illegal. How it works A spite fence is one that is designed to be unsightly. It has no purpose and is not useful, but it has been built specifically to harm your property value. There is a level of malicious intent in this construction; i.e., it was built out of spite. For example, the neighboring business has a fence on your property. You ask them to move it. They’re angry, since this will be a very expensive process, but they can’t deny that you are correct. It is on your land. When they move it, they extend it upward. Instead of a five-foot fence marking the line, they erect a 20-foot fence. Clearly, the goal here is to box in your property, ruin your view, and hide your business from the street. They’re doing it to make your property less attractive and to cost you business. Even if the fence is technically on their land now, they’ve taken steps to ensure that it has a negative impact on your life and your company. What should you do? You can imagine how frustrating this would be on a daily basis and how much the value of your property would plunge if you were looking to sell. That causes real financial harm. You must be sure that you know what legal steps you can take to put a stop to it.

In a perfect world, all residential tenants would be responsible people who take care of their apartment as if they owned it, would cause no careless damage beyond the ordinary “wear and tear,” would make very little or no noise and would always pay their rent on time. On top of all that, they would be pleasant, agreeable and honest. As most landlords in California and elsewhere realize, it certainly is not an ideal world. Some tenants do resemble those described above. They are people who resolve to consistently live up to their end of the deal when they rent residential property like apartments. Landlords value individuals like that. But other tenants are more problematic. At worst, they can be a source of endless, frustrating headaches for landlords. You may be a responsible landlord with either great or bothersome tenants. Regardless, you need to be absolutely sure that the leases your residential tenants sign contain all the appropriate elements and are written in compliance with the law. You want to be covered for any situation that may arise now or in the future. Things to include in your tenants’ leases While it’s best to take your unique needs into account, every lease should: State the procedure for tenants to follow if they have gripes or questions. Describe everything that pertains to actually paying the rent. That means how it can be paid, what is the due date and what happens if it is missed. Define the property’s occupancy capacity. Guidelines that may apply are the physical size of the property, any local laws plus the Fair Housing Act. Put in all the routine items, like the apartment’s address. The adults living there should each sign the lease. Note if the lease is by month or year. Make your residential lease as airtight as possible There are many important details that should be in a residential lease. Protect yourself by consulting an expert to be sure that you have mentioned all of them.