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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.

Commercial leases differ quite a bit from residential leases. If you are new to commercial property investing, it is a good idea to become familiar with common provisions found in commercial leases. According to REoptimizer, commercial lease provisions are a way to include some conditions on the agreement that may differ from the standard terms. There are several common provisions you should know about. Use clauses Use clauses can allow you to restrict how the renter uses the space. It can allow you to also place restrictions on the use of the property, such as hours of business. An exclusive use clause benefits the renter in that it ensures no other similar business will operate in the same building. Rent escalation clause A rent escalation clause allows you to increase the rent legally according to a schedule or based on triggers, such as an increase in property taxes. It provides you with the ability to avoid misunderstandings or have renters abandon their lease due to an increase. Renewal clause Commercial leases generally contain a renewal clause. Residential leases will often automatically renew unless the renter gives notice of moving out or you decide to end the lease, but commercial leases often require some type of confirmation and lease renewal at the end of the term. This clause will spell out the requirements to renew or end the lease. Improvement clauses Improvement clauses or alterations clauses cover what improvements are changes you or the tenant will make to the space. It outlines responsibility for costs as well. It may cover if the tenant must get permission before making changes.

Commercial leases differ quite a bit from residential leases. If you are new to commercial property investing, it is a good idea to become familiar with common provisions found in commercial leases. According to REoptimizer, commercial lease provisions are a way to include some conditions on the agreement that may differ from the standard terms. There are several common provisions you should know about. Use clauses Use clauses can allow you to restrict how the renter uses the space. It can allow you to also place restrictions on the use of the property, such as hours of business. An exclusive use clause benefits the renter in that it ensures no other similar business will operate in the same building. Rent escalation clause A rent escalation clause allows you to increase the rent legally according to a schedule or based on triggers, such as an increase in property taxes. It provides you with the ability to avoid misunderstandings or have renters abandon their lease due to an increase. Renewal clause Commercial leases generally contain a renewal clause. Residential leases will often automatically renew unless the renter gives notice of moving out or you decide to end the lease, but commercial leases often require some type of confirmation and lease renewal at the end of the term. This clause will spell out the requirements to renew or end the lease. Improvement clauses Improvement clauses or alterations clauses cover what improvements are changes you or the tenant will make to the space. It outlines responsibility for costs as well. It may cover if the tenant must get permission before making changes.

Due diligence is the process of doing your homework before buying real estate. It includes investigations that help you to ensure this is a good purchase and to check for any potential legal issues with the sale. With commercial real estate, RealWealth explains you need to ensure your due diligence uncovers whether the property matches your goals. Match your needs Doing due diligence with your end goal in mind will help you to know that this is a property you can use and that will work. It will help you to make sure you do not invest in something that you cannot move forward with. Avoid issues Due diligence will also help you uncover any potential title issues or other legal issues surrounding the property. This is especially important if you plan to resell the property. You need to know it will be yours free and clear with no boundary problems or anything else that could diminish the value for a future buyer. It will also allow you to discover anything that could be a potential hazard, such as a history of waste on the land. Identify potential Due diligence can also enable you to look further into the viability of this as an investment. For example, if you want to buy an apartment unit, proper due diligence will allow you to ensure you will be able to find renters. It will also let you look into any problems that could cost you money or prevent you from renting units. Due diligence protects you from a bad investment, which is essential in commercial real estate dealings.

Due diligence is the process of doing your homework before buying real estate. It includes investigations that help you to ensure this is a good purchase and to check for any potential legal issues with the sale. With commercial real estate, RealWealth explains you need to ensure your due diligence uncovers whether the property matches your goals. Match your needs Doing due diligence with your end goal in mind will help you to know that this is a property you can use and that will work. It will help you to make sure you do not invest in something that you cannot move forward with. Avoid issues Due diligence will also help you uncover any potential title issues or other legal issues surrounding the property. This is especially important if you plan to resell the property. You need to know it will be yours free and clear with no boundary problems or anything else that could diminish the value for a future buyer. It will also allow you to discover anything that could be a potential hazard, such as a history of waste on the land. Identify potential Due diligence can also enable you to look further into the viability of this as an investment. For example, if you want to buy an apartment unit, proper due diligence will allow you to ensure you will be able to find renters. It will also let you look into any problems that could cost you money or prevent you from renting units. Due diligence protects you from a bad investment, which is essential in commercial real estate dealings.

As a landlord, you probably do not like to think about disputing with your tenants. Most landlords hope for a cordial relationship with their tenants. Unfortunately, disputes do happen and you have to be prepared to handle them when they do. Moneycrashers has advice on how landlords should handle common problem tenants. Disruptive tenants If you receive complaints about one of your tenants, it is a good idea to investigate it. Some tenants may throw disruptive parties, have loud pets or play loud music throughout the day and night. Try to explain to your tenant the issue that other tenants have with him or her and look for a solution. The lease agreement should always have clear rules about noise and other disruptions. Destructive tenants Before you rent a property, you should take pictures. Even if you vet your tenants, you cannot always predict which tenants will become destructive to your property. To safeguard your property, you should have insurance policies designed for landlords. In addition, you should keep photographic evidence of your property before and after. Uncommunicative tenants Encourage your tenants to speak to you if he or she has any issues with income. For example, if your tenant can no longer afford rent, you may be able to move him or her to a different, lower-priced unit. Some tenants may not explain their situation and you could find yourself saddled with utility bills, even after the tenant leaves the property. To protect yourself against lack of payment for utilities, you may want the utilities to be in the tenant’s name. If you have clients that do not pay, that cause disruption or break the regulations of the lease, you have the power to evict.

As a landlord, you probably do not like to think about disputing with your tenants. Most landlords hope for a cordial relationship with their tenants. Unfortunately, disputes do happen and you have to be prepared to handle them when they do. Moneycrashers has advice on how landlords should handle common problem tenants. Disruptive tenants If you receive complaints about one of your tenants, it is a good idea to investigate it. Some tenants may throw disruptive parties, have loud pets or play loud music throughout the day and night. Try to explain to your tenant the issue that other tenants have with him or her and look for a solution. The lease agreement should always have clear rules about noise and other disruptions. Destructive tenants Before you rent a property, you should take pictures. Even if you vet your tenants, you cannot always predict which tenants will become destructive to your property. To safeguard your property, you should have insurance policies designed for landlords. In addition, you should keep photographic evidence of your property before and after. Uncommunicative tenants Encourage your tenants to speak to you if he or she has any issues with income. For example, if your tenant can no longer afford rent, you may be able to move him or her to a different, lower-priced unit. Some tenants may not explain their situation and you could find yourself saddled with utility bills, even after the tenant leaves the property. To protect yourself against lack of payment for utilities, you may want the utilities to be in the tenant’s name. If you have clients that do not pay, that cause disruption or break the regulations of the lease, you have the power to evict.

A contract is a legal document that creates obligations between the parties who enter the agreement. A breach of contract occurs when one party fails to fulfill any part of its contractual obligation. There are four main types of breach of contract. 1. Minor breach A minor breach of contract occurs when one party fails to fulfill one part of a contract, but the breach is so minor that it does not affect the fulfillment of the rest of the contract. This is also called an immaterial or partial breach. It is difficult to show harm in a minor breach unless the wronged party can prove how the missed part of the contract caused a significant loss. 2. Material breach A material breach of contract is when a key element of the contract is not fulfilled as agreed. It is a failure to perform the contract to such a degree that the heart or purpose of the agreement is fundamentally broken. This is the most severe type of breach of contract. 3. Anticipatory breach When one party to a contract acknowledges to the other that they will not be able to fulfill their contractual obligation by the agreed-upon time it is an anticipatory breach. The non-breaching party may also realize that a breach will occur through the actions of the breaching party without being formally notified. 4. Actual breach An actual breach of contract occurs when one party improperly or incompletely fulfills the duties obligated in the contract. It is a breach that has already occurred, it is not anticipated. When a breach of contract occurs, the wronged party can either seek to have the contract enforced or seek damages or restitution to recover from the financial harm of the breach. The remedy or recovery available depends on the type of breach and the severity of harm it caused.

A contract is a legal document that creates obligations between the parties who enter the agreement. A breach of contract occurs when one party fails to fulfill any part of its contractual obligation. There are four main types of breach of contract. 1. Minor breach A minor breach of contract occurs when one party fails to fulfill one part of a contract, but the breach is so minor that it does not affect the fulfillment of the rest of the contract. This is also called an immaterial or partial breach. It is difficult to show harm in a minor breach unless the wronged party can prove how the missed part of the contract caused a significant loss. 2. Material breach A material breach of contract is when a key element of the contract is not fulfilled as agreed. It is a failure to perform the contract to such a degree that the heart or purpose of the agreement is fundamentally broken. This is the most severe type of breach of contract. 3. Anticipatory breach When one party to a contract acknowledges to the other that they will not be able to fulfill their contractual obligation by the agreed-upon time it is an anticipatory breach. The non-breaching party may also realize that a breach will occur through the actions of the breaching party without being formally notified. 4. Actual breach An actual breach of contract occurs when one party improperly or incompletely fulfills the duties obligated in the contract. It is a breach that has already occurred, it is not anticipated. When a breach of contract occurs, the wronged party can either seek to have the contract enforced or seek damages or restitution to recover from the financial harm of the breach. The remedy or recovery available depends on the type of breach and the severity of harm it caused.

Not every California commercial tenant is a dream tenant, and in some cases, they are downright bad. If your commercial tenant has failed to make rent payments on time or at all or has otherwise broken lease terms, you may decide to move forward with an eviction. Tensions often run high during the eviction process. However, by staying calm and covering your bases, you may be able to make the situation easier while avoiding potential legal trouble. Per SFGate, there is a specific process you must follow when evicting a tenant from a commercial property. When doing so, be sure to take the following steps. Draft an eviction notice You must give your commercial tenant written notice of your plans to evict him or her. You must do so at least three days ahead of the day you plan to move forward with the eviction. Include the amount of rent overdue in the notice and make it clear that you must receive the amount in full within three days to stop the eviction. Serve the eviction notice Once you have your eviction notice drafted, you need to serve your commercial tenant at his or her place of business. If the tenant is absent, give the notice to a manager or executive who is present. If no one is there, post the notice to the door and be sure to put an additional copy in the mail. Following these guidelines may help you avoid unnecessary delays associated with evicting a commercial tenant and reduce any losses you might experience while eviction is ongoing.

Not every California commercial tenant is a dream tenant, and in some cases, they are downright bad. If your commercial tenant has failed to make rent payments on time or at all or has otherwise broken lease terms, you may decide to move forward with an eviction. Tensions often run high during the eviction process. However, by staying calm and covering your bases, you may be able to make the situation easier while avoiding potential legal trouble. Per SFGate, there is a specific process you must follow when evicting a tenant from a commercial property. When doing so, be sure to take the following steps. Draft an eviction notice You must give your commercial tenant written notice of your plans to evict him or her. You must do so at least three days ahead of the day you plan to move forward with the eviction. Include the amount of rent overdue in the notice and make it clear that you must receive the amount in full within three days to stop the eviction. Serve the eviction notice Once you have your eviction notice drafted, you need to serve your commercial tenant at his or her place of business. If the tenant is absent, give the notice to a manager or executive who is present. If no one is there, post the notice to the door and be sure to put an additional copy in the mail. Following these guidelines may help you avoid unnecessary delays associated with evicting a commercial tenant and reduce any losses you might experience while eviction is ongoing.

For many property owners, their homes represent many things, from reaching an important life stage to the centers of their families. Mortgage fraud, however, may jeopardize their homeownership, as well as bring other repercussions. Having an understanding of mortgage fraud may help people avoid getting taken advantage of. Watch for common schemes According to the Federal Bureau of Investigation, people may engage in mortgage fraud to obtain or retain property ownership or for profit. Some of the most common types of mortgage fraud schemes people attempt include the following: Loan modification schemes Commercial real estate loans Foreclosure rescue schemes Illegal property flipping Equity skimming Silent second Scammers also take advantage of the Federal Housing Administration’s home equity conversion mortgage program to convert the equity elderly homeowners hold in their properties into quick cash. Avoid getting scammed According to the Office of the Attorney General of California, people may avoid falling prey to scammers by taking certain precautions. For example, those needing foreclosure assistance should not pay for loan modifications upfront and never make mortgage payments to anyone other than their loan servicers or lenders. Should those providing foreclosure assistance services offer guarantees to stop the foreclosure process or forensic loan audits, it should raise red flags. People should never transfer or sell their homes to foreclosure rescuers as this may cost them ownership of their homes. Homeowners have rights against predatory lending practices; however, that does not mean that such scams do not occur. To protect themselves and their property, homeowners may benefit from working only with reputable services if they find themselves in need of mortgage assistance.