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As a commercial landlord here in Los Angeles, you will likely have to deal with the issue of subleasing at some point. Unless you unilaterally forbid subleasing specifically in your leasing contract for your commercial tenants, it’s quite possible that the current economic instability could give rise to requests for subleasing. How you respond to such requests matters a great deal. Since you don’t want to wind up as a defendant in a civil lawsuit, the following guidelines can be helpful in those circumstances. What are the tenant’s rights in the matter? As stated, unless specifically prohibited by the leasing contract, your tenant does have a right to sublease the property. As the property owner, you retain the right to restrict the type of business that the potential subtenant proposes to open. However, there is a caveat. A landlord’s consent may not be “unreasonably withheld.” While that clause is open to liberal interpretation, it is always best to err on the side of caution and seek a legal opinion whenever you are in doubt about your position. The tenant remains liable When a tenant takes on a subtenant, the original tenant remains liable for all of the financial burden to the property owner. They remain responsible for collecting the subtenant’s share of the rent because they have the role of surety for the original financial obligations. If the subtenant moves out in the middle of the night and skips out on their portion of the rent, that is not the property owner’s responsibility to pursue payment. The tenant absorbs the entire responsibility for paying the full rent according to the terms of their lease. Is it advantageous to allow subleasing? While circumstances do indeed matter, e.g., the type of business the sublessee plans to operate, from an owner’s perspective, a sublease tenant can indeed be a positive thing. In an uncertain economy where your original tenant may be struggling to make rent each month, a subtenant’s contributions can make the difference between shutting down and abdicating the tenant’s responsibility to pay rent and continuing to operate their business.

There are a number of types of commercial leases, as our readers likely know. One that isn’t talked about a lot is a full-service lease. These are most often used when leasing space in large office buildings. Basically, a full-service lease is similar to a gross lease. The costs of just about everything involved in maintaining the building are factored into each tenant’s monthly rent. This includes property taxes, insurance, utilities and common area maintenance (CAM). Advantages and disadvantages for tenants Many tenants prefer this kind of lease because it’s simpler. They have a rent payment every month that covers just about all of the expenses associated with the property they’re using. This can be a big advantage when budgeting. They can also avoid some monthly rate fluctuations – particularly if gas and electric costs are included. However, if you’re considering a commercial space with a full-service lease, be prepared to pay more than you would for other types of leases. Another disadvantage for tenants is that these leases don’t typically have a lot of transparency. You’re trusting that the landlord isn’t charging you more than they’re paying for various services – or charging you for services you barely use. Why property owners can benefit from these leases These leases can be advantageous to property owners. For example, aside from the consistency of rental payments, they may be able to invest in energy-saving improvements to the building if the lease covers these utilities. The tenants are paying the same amount as they were at the beginning of their lease while the building owner is saving money. These savings can subsidize the improvements. Whichever side of the full-service commercial lease agreement you’re on, it’s crucial to understand the advantages and disadvantages, what is required of you and how it will affect your bottom line.

There are a number of types of commercial leases, as our readers likely know. One that isn’t talked about a lot is a full-service lease. These are most often used when leasing space in large office buildings. Basically, a full-service lease is similar to a gross lease. The costs of just about everything involved in maintaining the building are factored into each tenant’s monthly rent. This includes property taxes, insurance, utilities and common area maintenance (CAM). Advantages and disadvantages for tenants Many tenants prefer this kind of lease because it’s simpler. They have a rent payment every month that covers just about all of the expenses associated with the property they’re using. This can be a big advantage when budgeting. They can also avoid some monthly rate fluctuations – particularly if gas and electric costs are included. However, if you’re considering a commercial space with a full-service lease, be prepared to pay more than you would for other types of leases. Another disadvantage for tenants is that these leases don’t typically have a lot of transparency. You’re trusting that the landlord isn’t charging you more than they’re paying for various services – or charging you for services you barely use. Why property owners can benefit from these leases These leases can be advantageous to property owners. For example, aside from the consistency of rental payments, they may be able to invest in energy-saving improvements to the building if the lease covers these utilities. The tenants are paying the same amount as they were at the beginning of their lease while the building owner is saving money. These savings can subsidize the improvements. Whichever side of the full-service commercial lease agreement you’re on, it’s crucial to understand the advantages and disadvantages, what is required of you and how it will affect your bottom line.

A business partnership benefits you and your partner. The two of you bring your own experience, resources and expertise to the company that you start or purchase. You have someone else that you can rely on to remain as dedicated as you are to the company, which can help when you need to focus on other matters, like your family.  The two of you can also help keep each other motivated and dedicated to the business you’ve built together. Still, like most human relationships, business partnerships often don’t last a lifetime. They may not even last for the entire life of your business. How do you identify the warning signs that you need to consider ending your partnership? Something destroyed the trust between the two of you Like a spouse, your business partner has a strong impact on your financial circumstances. You need to be able to trust that they will behave. When your business partner steals from the company or lies to you, you may no longer be able to trust them with access to your resources and control over major business decisions. One of you is ready to retire or move on to a new business Maybe after two decades of working together, one of you is ready to retire and enjoy their golden years. It’s also possible that headhunters from a bigger company or a start-up have made one of you an offer that is very hard to refuse. If there are personal or financial reasons for one of you to end your involvement in the company, it may be time to dissolve the partnership or have the partner who wants to stay buy the other one out of the business. You no longer agree on the big picture for the company The less you negotiate and outline in your initial business partnership contract, the more uncertainty there may be for the future of your relationship. For example, when the revenue reaches a certain level, one of you may want to sell the company while the other doesn’t. On the other hand, one of you may want to push to become a publicly-listed company with traded stocks while the other wants to keep things small and partner-owned. When your visions for the business start to diverge, you may have no choice but to resolve the matter by parting ways. Recognizing the signs that your partnership is no longer as beneficial as it once was can be the first step toward a better business relationship in the future.

A business partnership benefits you and your partner. The two of you bring your own experience, resources and expertise to the company that you start or purchase. You have someone else that you can rely on to remain as dedicated as you are to the company, which can help when you need to focus on other matters, like your family.  The two of you can also help keep each other motivated and dedicated to the business you’ve built together. Still, like most human relationships, business partnerships often don’t last a lifetime. They may not even last for the entire life of your business. How do you identify the warning signs that you need to consider ending your partnership? Something destroyed the trust between the two of you Like a spouse, your business partner has a strong impact on your financial circumstances. You need to be able to trust that they will behave. When your business partner steals from the company or lies to you, you may no longer be able to trust them with access to your resources and control over major business decisions. One of you is ready to retire or move on to a new business Maybe after two decades of working together, one of you is ready to retire and enjoy their golden years. It’s also possible that headhunters from a bigger company or a start-up have made one of you an offer that is very hard to refuse. If there are personal or financial reasons for one of you to end your involvement in the company, it may be time to dissolve the partnership or have the partner who wants to stay buy the other one out of the business. You no longer agree on the big picture for the company The less you negotiate and outline in your initial business partnership contract, the more uncertainty there may be for the future of your relationship. For example, when the revenue reaches a certain level, one of you may want to sell the company while the other doesn’t. On the other hand, one of you may want to push to become a publicly-listed company with traded stocks while the other wants to keep things small and partner-owned. When your visions for the business start to diverge, you may have no choice but to resolve the matter by parting ways. Recognizing the signs that your partnership is no longer as beneficial as it once was can be the first step toward a better business relationship in the future.

As a California landlord, you have certain obligations to keep your tenants safe and advise them when certain conditions in the building you rent might become compromised. When these issues arise, the question of landlord and tenant responsibility may come into question. One common problem that might affect you and your tenants is a bedbug infestation, and according to the California Legislature, Assembly Bill 551 now outlines your responsibilities if an infestation should occur. Landlord responsibilities According to the bill, you must ensure that any building you rent out to tenants is suitably safe and clean and that if you had the building treated for bedbugs, you must supply any prospective tenant with a copy of the pest control report. This may assist a tenant when making rental decisions and protect you as the owner of the building. In accordance with the bill, if you know a unit or building has a bed bug issue, you may not show or rent that space until you have it treated and inspected by a qualified pest control company. Fostering tenant cooperation As a landlord, much of the responsibility of bed bug control falls upon you. However, you can foster cooperation with each of your tenants so you can work together to lower the risk of future infestations. Provide your tenants with information about how to prevent bedbugs and how to identify signs of an infestation, including: Small brown fecal marks on sheets Itchy bites on the legs and ankles Visible molted shells in bedding You can encourage tenants to report these signs to you as soon as possible so you can treat the area. A bed bug infestation can be difficult to treat, but early detection can help you fulfill your responsibilities as a California landlord before the problem spins out of control.

As a California landlord, you have certain obligations to keep your tenants safe and advise them when certain conditions in the building you rent might become compromised. When these issues arise, the question of landlord and tenant responsibility may come into question. One common problem that might affect you and your tenants is a bedbug infestation, and according to the California Legislature, Assembly Bill 551 now outlines your responsibilities if an infestation should occur. Landlord responsibilities According to the bill, you must ensure that any building you rent out to tenants is suitably safe and clean and that if you had the building treated for bedbugs, you must supply any prospective tenant with a copy of the pest control report. This may assist a tenant when making rental decisions and protect you as the owner of the building. In accordance with the bill, if you know a unit or building has a bed bug issue, you may not show or rent that space until you have it treated and inspected by a qualified pest control company. Fostering tenant cooperation As a landlord, much of the responsibility of bed bug control falls upon you. However, you can foster cooperation with each of your tenants so you can work together to lower the risk of future infestations. Provide your tenants with information about how to prevent bedbugs and how to identify signs of an infestation, including: Small brown fecal marks on sheets Itchy bites on the legs and ankles Visible molted shells in bedding You can encourage tenants to report these signs to you as soon as possible so you can treat the area. A bed bug infestation can be difficult to treat, but early detection can help you fulfill your responsibilities as a California landlord before the problem spins out of control.

Businesses and private investors in California know the value of commercial real estate holdings, thus prompting many to look for whatever opportunities become available to build up such properties. As is the case across all real estate segments, often the key to a property’s value is “location, location, location.” Yet when it comes to commercial real estate properties, zoning restrictions often bar them from certain locations. That may not stop a developer from falling in love with a particular location. Should one want to pursue the chance to develop a commercial property on a particular location, a zoning variance may be a possibility. Reasons for a zoning variance A zoning variance allows for the construction or development of a certain type of structure or property outside of the standard set by a parcel’s zoning laws. According to the website Bankrate.com, on top of gaining permission to build a new property in contrast of local zoning codes, another common reason for requesting a zoning variance include altering an existing property in a way that would change its current zoning classification. The zoning variance process in Los Angeles County With zoning ordinances set at the local level (specifically at the county level), a developer must seek a variance from the same authority. Per Section 12.27 of the Los Angeles County Municipal Code, the county’s Zoning Administrator can only grant a variance in the following scenario: Special circumstances seemingly warrant the variance A variance allows for the preservation and enjoyment of a substantial property in the zoned area Granting the variance would not adversely affect public welfare or the county’s General Plan (the policy informing future land use decisions) A lack of variance would impose a hardship contrary to the intent of zoning regulations If the issue of the variance affects public interests, the Zoning Administrator may make the variance hearing public.

Businesses and private investors in California know the value of commercial real estate holdings, thus prompting many to look for whatever opportunities become available to build up such properties. As is the case across all real estate segments, often the key to a property’s value is “location, location, location.” Yet when it comes to commercial real estate properties, zoning restrictions often bar them from certain locations. That may not stop a developer from falling in love with a particular location. Should one want to pursue the chance to develop a commercial property on a particular location, a zoning variance may be a possibility. Reasons for a zoning variance A zoning variance allows for the construction or development of a certain type of structure or property outside of the standard set by a parcel’s zoning laws. According to the website Bankrate.com, on top of gaining permission to build a new property in contrast of local zoning codes, another common reason for requesting a zoning variance include altering an existing property in a way that would change its current zoning classification. The zoning variance process in Los Angeles County With zoning ordinances set at the local level (specifically at the county level), a developer must seek a variance from the same authority. Per Section 12.27 of the Los Angeles County Municipal Code, the county’s Zoning Administrator can only grant a variance in the following scenario: Special circumstances seemingly warrant the variance A variance allows for the preservation and enjoyment of a substantial property in the zoned area Granting the variance would not adversely affect public welfare or the county’s General Plan (the policy informing future land use decisions) A lack of variance would impose a hardship contrary to the intent of zoning regulations If the issue of the variance affects public interests, the Zoning Administrator may make the variance hearing public.

If you own or rent a commercial unit in a building with other owners or renters, there is a good chance you have at least one party wall. Party walls are simply the walls between two or more separately owned properties. Keeping party walls in good condition is in the interests of all property owners. This is especially true when party walls act as fire barriers or provide structural support. Still, if a property owner on the opposite side of your party wall wants to renovate, you may encounter some conflict. Here are three ways to avoid party wall disputes. 1. Have a comprehensive party wall agreement Arguably, the best time to address party wall disputes is before they arise. With a comprehensive party wall agreement, all property owners understand their rights and responsibilities. Before you purchase a property that has an existing party wall agreement, your due diligence should include reading it. 2. Ask for professional help If you suspect another property owner may be damaging or neglecting the party wall, you may want to ask for professional help. A structural engineer may use laser technology to gauge the stability of the wall. He or she may also attach monitors that send automatic alerts when there is a problem. 3. Pursue alternate dispute resolution While you can probably sue to enforce the terms of a party wall agreement, you may not ever have to go to court. After all, your party wall agreement may include a provision for resolving disputes. If the agreement is silent on the matter, meeting with a neutral mediator may help you reach common ground with the other property owner. Alternate dispute resolution does not always work, of course. Ultimately, to safeguard your investment and your property, you may need to pursue all available options to protect your party wall.

If you own or rent a commercial unit in a building with other owners or renters, there is a good chance you have at least one party wall. Party walls are simply the walls between two or more separately owned properties. Keeping party walls in good condition is in the interests of all property owners. This is especially true when party walls act as fire barriers or provide structural support. Still, if a property owner on the opposite side of your party wall wants to renovate, you may encounter some conflict. Here are three ways to avoid party wall disputes. 1. Have a comprehensive party wall agreement Arguably, the best time to address party wall disputes is before they arise. With a comprehensive party wall agreement, all property owners understand their rights and responsibilities. Before you purchase a property that has an existing party wall agreement, your due diligence should include reading it. 2. Ask for professional help If you suspect another property owner may be damaging or neglecting the party wall, you may want to ask for professional help. A structural engineer may use laser technology to gauge the stability of the wall. He or she may also attach monitors that send automatic alerts when there is a problem. 3. Pursue alternate dispute resolution While you can probably sue to enforce the terms of a party wall agreement, you may not ever have to go to court. After all, your party wall agreement may include a provision for resolving disputes. If the agreement is silent on the matter, meeting with a neutral mediator may help you reach common ground with the other property owner. Alternate dispute resolution does not always work, of course. Ultimately, to safeguard your investment and your property, you may need to pursue all available options to protect your party wall.

Commercial tenants that outgrow a rental unit may find larger areas and move their operations there. Under an existing lease agreement, however, a tenant may still face liability for monthly rent payments. To avoid paying double rent, a tenant may find another business willing to take over the lease. As noted by the Los Angeles Daily News, when commercial tenants sublease, they remain responsible for the rent if a sub-tenant fails to pay. Landlords may also have some alternative options to consider. A property owner may reduce the risk of default A rental agreement may specify when a landlord may begin marketing a space to attract a replacement tenant. Depending on the amount of time left on the lease, a landlord may modify the unit to meet market demands and appeal to a long-term tenant. Rental units, for example, may become smaller to accommodate a number of different commercial tenants sharing what was once a much larger space. By offering less square footage at attractive rates, a landlord may find it profitable to terminate a lease rather than rely on a single tenant. Dividing the area may also reduce the risk of financial losses if any of the new tenants’ businesses fail and cause them to default. Creativity could result in new types of tenants As reported by CNN, some vacant shopping mall owners looked beyond traditional retail tenants and began offering empty spaces to different types of growing businesses. Doctors, schools and storage facilities have all signed lease agreements for space located inside shopping malls. The terms of a commercial lease may require some flexibility when market conditions appear uncertain. A lease may proactively highlight the conditions for modifying or terminating an agreement amicably. Avoiding landlord and tenant disputes could result in workable solutions that mitigate the risk of loss to both parties.