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

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.

Typically, only residential leases have clauses specifically addressing companion animals like dogs. Commercial leases usually don’t talk about animals or pets at all. However, that has begun to change. Pet ownership has been on the rise in the United States in recent years, and many professionals dislike the idea of leaving their beloved companion animals at home all day while they work. If you are about to lease office space or retail space, should you consider asking your landlord to include a clause that allows pets? The benefits of a pet clause If your landlord agrees to accommodate employees’ animals at the rental space, that could make your company’s job openings much more attractive to many professionals. Being able to bring your dog with you to the office if the animal behaves properly is an attractive benefit that many people would jump at the opportunity to have. Additionally, pets can attract customers to retail spaces and can give your company a very friendly, community-oriented feel. The risks of asking for a pet clause in your lease The first and most obvious concern is that the landlord will not only be unreceptive but may no longer be willing to rent to you out of concern that you could bring animals into the building anyway. It’s also possible that you may have to pay more for the space if you ask for that additional accommodation from the landlord. The landlord could also increase the rental costs they intend to charge you or expect you to carry even more insurance while renting the space. Learning about the different terms you can add to a commercial lease can help you negotiate for the most favorable ones possible.

Typically, only residential leases have clauses specifically addressing companion animals like dogs. Commercial leases usually don’t talk about animals or pets at all. However, that has begun to change. Pet ownership has been on the rise in the United States in recent years, and many professionals dislike the idea of leaving their beloved companion animals at home all day while they work. If you are about to lease office space or retail space, should you consider asking your landlord to include a clause that allows pets? The benefits of a pet clause If your landlord agrees to accommodate employees’ animals at the rental space, that could make your company’s job openings much more attractive to many professionals. Being able to bring your dog with you to the office if the animal behaves properly is an attractive benefit that many people would jump at the opportunity to have. Additionally, pets can attract customers to retail spaces and can give your company a very friendly, community-oriented feel. The risks of asking for a pet clause in your lease The first and most obvious concern is that the landlord will not only be unreceptive but may no longer be willing to rent to you out of concern that you could bring animals into the building anyway. It’s also possible that you may have to pay more for the space if you ask for that additional accommodation from the landlord. The landlord could also increase the rental costs they intend to charge you or expect you to carry even more insurance while renting the space. Learning about the different terms you can add to a commercial lease can help you negotiate for the most favorable ones possible.

Tobacco consumption is not as common as it was just a few decades ago. An increase in public awareness about the risks of smoking combined with the increased cost of tobacco products has led to a tapering off of smoking in general and amenities targeted at smokers. Still, millions of Americans smoke regularly. Many individuals may want to smoke at home, even if they can’t smoke at work or when dining at a restaurant anymore. Although tobacco users may want a comfortable place to smoke, their landlords may not allow smoking in their properties. Cigarette or cigar use can easily lead to conflicts between landlords and tenants. Can a landlord financially penalize or evict a tenant for smoking in one of their units? The lease generally determines what steps a landlord can take California does not have a law specifically prohibiting the use of tobacco products inside residential properties. However, the state does restrict smoking in certain public places, such as right outside of a residential building where other people live. Property owners have to make their own decisions about tobacco use. Landlords in California have the right to include certain restrictions in the leases that they execute. They can limit any actions that might damage their units or lead to financial or legal problems. Given that it can cost as much as $15,000 to address the cosmetic damage and health risks caused by smoking tobacco inside an apartment, landlords may have a strong incentive to prohibit tobacco use or make a financial claim against a tenant who smoked inside in violation of their lease. Learning more about California’s laws can help you respond appropriately during a landlord-tenant conflict about tobacco.

Tobacco consumption is not as common as it was just a few decades ago. An increase in public awareness about the risks of smoking combined with the increased cost of tobacco products has led to a tapering off of smoking in general and amenities targeted at smokers. Still, millions of Americans smoke regularly. Many individuals may want to smoke at home, even if they can’t smoke at work or when dining at a restaurant anymore. Although tobacco users may want a comfortable place to smoke, their landlords may not allow smoking in their properties. Cigarette or cigar use can easily lead to conflicts between landlords and tenants. Can a landlord financially penalize or evict a tenant for smoking in one of their units? The lease generally determines what steps a landlord can take California does not have a law specifically prohibiting the use of tobacco products inside residential properties. However, the state does restrict smoking in certain public places, such as right outside of a residential building where other people live. Property owners have to make their own decisions about tobacco use. Landlords in California have the right to include certain restrictions in the leases that they execute. They can limit any actions that might damage their units or lead to financial or legal problems. Given that it can cost as much as $15,000 to address the cosmetic damage and health risks caused by smoking tobacco inside an apartment, landlords may have a strong incentive to prohibit tobacco use or make a financial claim against a tenant who smoked inside in violation of their lease. Learning more about California’s laws can help you respond appropriately during a landlord-tenant conflict about tobacco.

You want to go into business by investing in real estate projects. Perhaps you’re looking to buy empty lots or old buildings and then develop them. You know there is a lot of money to be made, but you also need money to start the project, so you begin by looking for investors who share your vision. Once you find one, how should you proceed? Do you need to use a contract, or is it enough if the two of you simply agree to work toward the same goal? A contract is crucial It really is important to have an official contract. Remember that you have a lot on the line — not just the money you have invested, but the future of your business as a whole. You don’t want to leave anything up to chance. A contract lets you define things like: What your roles with the development will be How ownership will be divided How you can resolve any disputes that may arise How and when someone can leave the partnership How potential earnings will be divided Exactly who will be involved in the project How to break the partnership if things do not go well What sort of return the investors can expect You can also use the contract to make sure that you both have the same vision. Are you looking to own the development, running it and leasing out space, or are you just trying to develop it and then flip the property for a profit? You need to have the same focus, and you need to know what legal steps to take to protect yourself and your investment if a dispute does arise.

You want to go into business by investing in real estate projects. Perhaps you’re looking to buy empty lots or old buildings and then develop them. You know there is a lot of money to be made, but you also need money to start the project, so you begin by looking for investors who share your vision. Once you find one, how should you proceed? Do you need to use a contract, or is it enough if the two of you simply agree to work toward the same goal? A contract is crucial It really is important to have an official contract. Remember that you have a lot on the line — not just the money you have invested, but the future of your business as a whole. You don’t want to leave anything up to chance. A contract lets you define things like: What your roles with the development will be How ownership will be divided How you can resolve any disputes that may arise How and when someone can leave the partnership How potential earnings will be divided Exactly who will be involved in the project How to break the partnership if things do not go well What sort of return the investors can expect You can also use the contract to make sure that you both have the same vision. Are you looking to own the development, running it and leasing out space, or are you just trying to develop it and then flip the property for a profit? You need to have the same focus, and you need to know what legal steps to take to protect yourself and your investment if a dispute does arise.

When a landlord signs a lease with a new tenant, that tenant becomes responsible for paying rent. It is common for commercial leases to last for three to five years. However, businesses don’t always survive for as long as the owner may have hoped they would when they leased the property. What happens to a commercial lease when the business that signed the lease goes out of business? Landlords and tenants can cooperate Sometimes, the end of a business won’t result in a lease dispute. If the landlord understands the situation and agrees to let the commercial tenant leave the property or find someone to assume their lease, there may not need to be any conflict. A business no longer in operation likely won’t have the resources to continue paying rent indefinitely. A landlord may benefit more from getting a new tenant now rather than trying to enforce the lease and letting the unit sit vacant. Provided that the parties can compromise, the early termination of the lease won’t necessarily lead to legal action. What happens when landlords and tenants don’t agree about the next step? If the landlord wants to demand repayment for the remainder of the lease, they may take their tenant to court. Sometimes, tenants may try to convince the court that the terms of the lease allow them to terminate it early. Other times, they might respond by filing for bankruptcy and dissolving the business. Tenants who are unable to pay their leases and landlords trying to enforce a commercial lease will need to review the document before deciding what steps to take next. Learning more about commercial leases can help businesses and landlords handle rental disputes more effectively.

When a landlord signs a lease with a new tenant, that tenant becomes responsible for paying rent. It is common for commercial leases to last for three to five years. However, businesses don’t always survive for as long as the owner may have hoped they would when they leased the property. What happens to a commercial lease when the business that signed the lease goes out of business? Landlords and tenants can cooperate Sometimes, the end of a business won’t result in a lease dispute. If the landlord understands the situation and agrees to let the commercial tenant leave the property or find someone to assume their lease, there may not need to be any conflict. A business no longer in operation likely won’t have the resources to continue paying rent indefinitely. A landlord may benefit more from getting a new tenant now rather than trying to enforce the lease and letting the unit sit vacant. Provided that the parties can compromise, the early termination of the lease won’t necessarily lead to legal action. What happens when landlords and tenants don’t agree about the next step? If the landlord wants to demand repayment for the remainder of the lease, they may take their tenant to court. Sometimes, tenants may try to convince the court that the terms of the lease allow them to terminate it early. Other times, they might respond by filing for bankruptcy and dissolving the business. Tenants who are unable to pay their leases and landlords trying to enforce a commercial lease will need to review the document before deciding what steps to take next. Learning more about commercial leases can help businesses and landlords handle rental disputes more effectively.

People who are interested in pooling their resources with others to make real estate investments they couldn’t handle on their own have several types of real estate investment groups (REIGs) to choose from. A popular one is a real estate limited partnership (RELP). A RELP typically consists of one or more general partners who have full liability for the RELP’s investment in a project. A general partner can be a real estate development firm, a property manager or even a corporation that takes primary responsibility for the project and the day-to-day decisions around it. The limited partners are typically outside investors who have only a limited say in the project – taking a “hands-off” approach. Their role is to provide the money needed to make the project possible, in exchange for what they hope will be a healthy return on their investment. The importance of the RELP partnership agreement It should be noted, however, that some RELPs are more collaborative than others. The partnership agreement for the RELP determines how much of a role the various partners will be able to play in choosing and managing the real estate projects for investments. It should also detail things like the minimum investment required of each limited partner, how dividend distributions are made, voting rights and other provisions. Most RELPs have a predetermined end date. If you’re forming a RELP or considering joining one, it’s wise to seek legal guidance. Certainly, when developing your partnership agreement, you need experienced help. While no real estate investment is a sure thing, it’s essential to weigh the potential risks and rewards and understand the tax implications for you.

People who are interested in pooling their resources with others to make real estate investments they couldn’t handle on their own have several types of real estate investment groups (REIGs) to choose from. A popular one is a real estate limited partnership (RELP). A RELP typically consists of one or more general partners who have full liability for the RELP’s investment in a project. A general partner can be a real estate development firm, a property manager or even a corporation that takes primary responsibility for the project and the day-to-day decisions around it. The limited partners are typically outside investors who have only a limited say in the project – taking a “hands-off” approach. Their role is to provide the money needed to make the project possible, in exchange for what they hope will be a healthy return on their investment. The importance of the RELP partnership agreement It should be noted, however, that some RELPs are more collaborative than others. The partnership agreement for the RELP determines how much of a role the various partners will be able to play in choosing and managing the real estate projects for investments. It should also detail things like the minimum investment required of each limited partner, how dividend distributions are made, voting rights and other provisions. Most RELPs have a predetermined end date. If you’re forming a RELP or considering joining one, it’s wise to seek legal guidance. Certainly, when developing your partnership agreement, you need experienced help. While no real estate investment is a sure thing, it’s essential to weigh the potential risks and rewards and understand the tax implications for you.

Real estate prices in California have remained among the highest in the nation in recent decades. When you spend more per square foot or acre than people in other places, it’s only natural to be defensive about your property rights. Few issues can damage your relationship with your neighbors as quickly as a boundary dispute can. Misinformation or confusion might lead to neighbors having very strong, differing opinions about where the boundary line between their property is. When one neighbor wants to expand their house, put in a garden or install a fence, a boundary line dispute can lead to major issues. How can you resolve the dispute? Check your title paperwork When you bought the property, one of the most important documents that you likely didn’t review was the property description. Depending on where your property is and the way that subdivision of bigger parcels has occurred in the area, your property description could be an entire paragraph of detailed, confusing terms. Your property description will ostensibly tell you where the boundary for your property is. In some cases, you and your neighbor may be able to compare your title paperwork and clarify where the boundary falls. Bring in professional help Making sense of the legal description isn’t always easy. You may need to consider hiring a surveyor to come and establish the boundary for your property. Bringing in a professional can be the fastest way to resolve the issue and can make it easier for you to push back in court if your neighbor continues to violate your property rights. Resolving a boundary dispute often requires patience and experienced legal guidance. However, it will protect the land that you have invested so much in over the years.