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

As a residential property owner in Los Angeles, your hope is that you will be able to maintain a good relationship with all of your tenants. Doing so ensures that you maintain a strong reputation (which can then also help guarantee that there will rarely be a shortage of demand for your properties). Yet despite your best efforts and wishes, there may be times where a tenant’s actions (or inaction) forces your hand and requires you to consider commencing eviction proceedings. Yet just as you hope to be known as a reasonable landlord, you also do not want to be known as one who evicts over every little discrepancy or disagreement. Being in too big of a hurry to get someone out of one of your units might come back to haunt you. Thus, it is important to understand the circumstances in which you are within your rights to evict. According to information shared by the Judicial Branch of California, you can evict when: A tenant fails to meet rent payment deadlines A tenant damages your property A tenant makes themselves a serious nuisance to other residents of the same property A tenant engages in illegal activity on your property Instances where a tenant violates the term of a lease agreement (e.g. bringing in a roommate without informing you when their rent rate is based on occupancy) can also be grounds for eviction. In some cases, it may be in your best interest to work with the tenant to resolve any violations before considering eviction. Yet where a first offense is egregious enough, you are likely justified in evicting.

While negotiating California commercial real estate purchase, sale or lease contracts, the number of critical issues to address may seem endless. Not the least of these issues is often whether or not the public or private commercial property in question meets the Americans with Disabilities Act Standards for Accessible Design. We understand the importance of ADA compliance for both allowing universal access to all and avoiding wasted time and money with unnecessary lawsuits. Unfortunately, ADA discrimination litigation in California is widespread. The Long Beach Press-Telegram reported that California led the nation with more than 2,000 new ADA lawsuits filed from January through June 2019. The reasons for this surge may be widespread, but one theory suggests that California’s promise of damages to the accuser could make even the smallest incidences of non-compliance attractive targets. This susceptibility emphasizes the need for commercial property investors to address any potential issues early in the process to avoid problems in the future. Among other considerations is the significant expense that could be involved with retrofitting buildings to meet the standards set by the ADA. According to the Long Beach Press-Telegram, one southern California business would have to pay $45,000 to bring a single bathroom into compliance. Finding all of the potential accessibility issues that need correction and assessing the cost should be a problem during contract negotiation, and not one you’re rushing to address after the fact. Competent representation with experience in ADA compliance can help prevent you from being blindsided with a lawsuit after you’ve signed the dotted line. Visit our webpage for more information on this topic.

While negotiating California commercial real estate purchase, sale or lease contracts, the number of critical issues to address may seem endless. Not the least of these issues is often whether or not the public or private commercial property in question meets the Americans with Disabilities Act Standards for Accessible Design. We understand the importance of ADA compliance for both allowing universal access to all and avoiding wasted time and money with unnecessary lawsuits. Unfortunately, ADA discrimination litigation in California is widespread. The Long Beach Press-Telegram reported that California led the nation with more than 2,000 new ADA lawsuits filed from January through June 2019. The reasons for this surge may be widespread, but one theory suggests that California’s promise of damages to the accuser could make even the smallest incidences of non-compliance attractive targets. This susceptibility emphasizes the need for commercial property investors to address any potential issues early in the process to avoid problems in the future. Among other considerations is the significant expense that could be involved with retrofitting buildings to meet the standards set by the ADA. According to the Long Beach Press-Telegram, one southern California business would have to pay $45,000 to bring a single bathroom into compliance. Finding all of the potential accessibility issues that need correction and assessing the cost should be a problem during contract negotiation, and not one you’re rushing to address after the fact. Competent representation with experience in ADA compliance can help prevent you from being blindsided with a lawsuit after you’ve signed the dotted line. Visit our webpage for more information on this topic.

As former shopping center anchors like Sears drop out of business, the empty spaces could cause additional problems for California commercial real estate landlords if the outlying tenants begin to complain of dwindling sales revenue. Commercial leases often allow for co-tenancy provisions for smaller retailers, such as alternative or reduced rent scenarios, that can hurt a shopping center owner’s cash flow even further. However, when those provisions involve 25-year-old use restrictions — that anchor retailers must be national credit tenants, for example — it can become increasingly difficult for landlords to fill those spaces with adequate replacements. It may be time to revisit commercial real estate leases and examine precisely what the requirements are for replacing an anchor tenant. Many co-tenancy provisions already agree that replacement by a comparable anchor retailer is acceptable, now landlords and tenants need to decide on what the definition of “comparable” is. According to GlobeSt.com, co-tenancy agreements written decades in the past included use restrictions that would prevent a retailer like an athletic or entertainment venue from occupying a space that was not considered “brand-relevant” to existing tenants. But that shopping center formula centered on nationally recognized retail anchor stores is no longer what consumers seem to want. Instead, some shopping center landlords are already stepping up to work with their retail tenants and increase foot traffic in more non-traditional ways by incorporating new tenants that revitalize the mall experience. CBRE.com reports that the largest mall owner in the U.S. is beginning to broaden its definition of a viable tenant base by including fitness centers, hotels and even areas for office use. As the market demand for destinations like department stores declines, shopping center landlords should continue to see a rise in success with alternative retail development.

As former shopping center anchors like Sears drop out of business, the empty spaces could cause additional problems for California commercial real estate landlords if the outlying tenants begin to complain of dwindling sales revenue. Commercial leases often allow for co-tenancy provisions for smaller retailers, such as alternative or reduced rent scenarios, that can hurt a shopping center owner’s cash flow even further. However, when those provisions involve 25-year-old use restrictions — that anchor retailers must be national credit tenants, for example — it can become increasingly difficult for landlords to fill those spaces with adequate replacements. It may be time to revisit commercial real estate leases and examine precisely what the requirements are for replacing an anchor tenant. Many co-tenancy provisions already agree that replacement by a comparable anchor retailer is acceptable, now landlords and tenants need to decide on what the definition of “comparable” is. According to GlobeSt.com, co-tenancy agreements written decades in the past included use restrictions that would prevent a retailer like an athletic or entertainment venue from occupying a space that was not considered “brand-relevant” to existing tenants. But that shopping center formula centered on nationally recognized retail anchor stores is no longer what consumers seem to want. Instead, some shopping center landlords are already stepping up to work with their retail tenants and increase foot traffic in more non-traditional ways by incorporating new tenants that revitalize the mall experience. CBRE.com reports that the largest mall owner in the U.S. is beginning to broaden its definition of a viable tenant base by including fitness centers, hotels and even areas for office use. As the market demand for destinations like department stores declines, shopping center landlords should continue to see a rise in success with alternative retail development.

If the owner of a property adjacent to yours builds a structure that intrudes on your land, or over it, this is an encroachment. It can be very frustrating to have another party encroach on your property, especially if you make money from the commercial use of it. Fortunately, according to FindLaw, there are many different possible remedies for encroachment. One option is to file a lawsuit against the other owner stating that he or she is making improper use of land that belongs to you. If you are successful in proving your case, the court can order the other owner to remove the structure. However, there are also disadvantages to this course of action. The court may decide in favor of the other owner and grant him or her the right to use the property on a limited basis. This is more likely if the misuse has been going on for some time. Even if the court does eventually decide in your favor, the process can be very lengthy. For these reasons, many property owners choose to litigate encroachment only as a last resort. Other options include selling the disputed land to the other property owner. Before taking this step, you should ensure the accuracy of all pertinent land records. You may also be able to negotiate an alternative arrangement with the other owner outside of court, saving you both on legal fees. If the encroachment is less bothersome to you than the prospect of a legal dispute with the adjacent property owner, another option is to do nothing. However, in this case, you have the responsibility to disclose the encroachment to potential buyers if you ever decide to sell.

If the owner of a property adjacent to yours builds a structure that intrudes on your land, or over it, this is an encroachment. It can be very frustrating to have another party encroach on your property, especially if you make money from the commercial use of it. Fortunately, according to FindLaw, there are many different possible remedies for encroachment. One option is to file a lawsuit against the other owner stating that he or she is making improper use of land that belongs to you. If you are successful in proving your case, the court can order the other owner to remove the structure. However, there are also disadvantages to this course of action. The court may decide in favor of the other owner and grant him or her the right to use the property on a limited basis. This is more likely if the misuse has been going on for some time. Even if the court does eventually decide in your favor, the process can be very lengthy. For these reasons, many property owners choose to litigate encroachment only as a last resort. Other options include selling the disputed land to the other property owner. Before taking this step, you should ensure the accuracy of all pertinent land records. You may also be able to negotiate an alternative arrangement with the other owner outside of court, saving you both on legal fees. If the encroachment is less bothersome to you than the prospect of a legal dispute with the adjacent property owner, another option is to do nothing. However, in this case, you have the responsibility to disclose the encroachment to potential buyers if you ever decide to sell.

According to Housing Community Investment Department, nearly 60% of Los Angeles residents live in rentals. Leasing a property to a tenant comes with rules and regulations. As far as tenants have their rights, landlords have the right to evict them if they cannot adhere to the lease agreement. However, a landlord needs a good reason for terminating the lease. They must give the tenant a notice of 30 days to vacate. Here are some lease violations that call for a legal eviction. Contravening pet rules Some landlords have regulations regarding whether the tenant can bring in pets and which types of pets they may keep. Some tenants ignore the “no pet allowed” notice. If this happens, the landlord should send a lease violation timeline, which requires the tenant to remove the pet. If they do not comply, the landlord has the right to evict them. Decorations that cause damages The Standard Rental Agreement states that the tenant should not damage the house but leave it as they found it. It means the tenants are limited in the decorations to avoid unnecessary damages. If a tenant damages the house by adding unnecessary decors, the landlord has the right to issue an eviction notice. Extended or unapproved guests Some tenancy agreements do not allow tenants to bring in other occupants except for the ones listed in the contract. They should inform the house manager if they have a guest that wishes to transform into a permanent resident. Failure to do this is a lease agreement violation, and the landlord has the right to evict the tenant. A strong leaser agreement is a foundation of the landlord-tenant relationship. It is the wish of all landlords to have their tenants around until the lease period elapses.

According to Housing Community Investment Department, nearly 60% of Los Angeles residents live in rentals. Leasing a property to a tenant comes with rules and regulations. As far as tenants have their rights, landlords have the right to evict them if they cannot adhere to the lease agreement. However, a landlord needs a good reason for terminating the lease. They must give the tenant a notice of 30 days to vacate. Here are some lease violations that call for a legal eviction. Contravening pet rules Some landlords have regulations regarding whether the tenant can bring in pets and which types of pets they may keep. Some tenants ignore the “no pet allowed” notice. If this happens, the landlord should send a lease violation timeline, which requires the tenant to remove the pet. If they do not comply, the landlord has the right to evict them. Decorations that cause damages The Standard Rental Agreement states that the tenant should not damage the house but leave it as they found it. It means the tenants are limited in the decorations to avoid unnecessary damages. If a tenant damages the house by adding unnecessary decors, the landlord has the right to issue an eviction notice. Extended or unapproved guests Some tenancy agreements do not allow tenants to bring in other occupants except for the ones listed in the contract. They should inform the house manager if they have a guest that wishes to transform into a permanent resident. Failure to do this is a lease agreement violation, and the landlord has the right to evict the tenant. A strong leaser agreement is a foundation of the landlord-tenant relationship. It is the wish of all landlords to have their tenants around until the lease period elapses.

It is a well-known fact that real estate is one of the most effective paths to wealth in America. Even outside of competitive markets like Los Angeles, California offers many opportunities for real estate investors to pursue. This is true regardless of what avenue they wish to take, such as developer, investor or realtor. In fact, some people have successfully pursued a combination of all three. A CNN story of one California realtor covers some of the many paths people can try when looking into real estate opportunities: Finding the deal: Some people have a nose for a good deal in real estate, even when they lack the money to invest. Professionals can find investors these deals and skim off the top. Getting multiple investors: Instead of taking out a loan, many real estate professionals get multiple investors to pool their resources together. They then use this money to develop or buy properties. Smallscale partnering: If two or more people share the same goal and vision but bring complementing assets to the table, they can partner to develop properties. For instance, a party of three could be a realtor, contractor and investor. Using loans: Professionals who prefer greater financial independence and have good credit to boot might benefit from this arrangement. The story as told by CNN shared that not all of these approaches provided long-term benefits for the investor. It nonetheless offered lessons for him to fine-tune his next approach and execute the plan. One option not covered above is becoming a landlord. Forbes reports that for 2019, some cities in California saw monthly rent prices as high as $2,013 per month. An undersupply of housing is the main reason for this. Developers are unable to keep up with market demands as jobs bring more people in. This creates a great investment opportunity for the right professional with a competent team and sufficient capital.

It is a well-known fact that real estate is one of the most effective paths to wealth in America. Even outside of competitive markets like Los Angeles, California offers many opportunities for real estate investors to pursue. This is true regardless of what avenue they wish to take, such as developer, investor or realtor. In fact, some people have successfully pursued a combination of all three. A CNN story of one California realtor covers some of the many paths people can try when looking into real estate opportunities: Finding the deal: Some people have a nose for a good deal in real estate, even when they lack the money to invest. Professionals can find investors these deals and skim off the top. Getting multiple investors: Instead of taking out a loan, many real estate professionals get multiple investors to pool their resources together. They then use this money to develop or buy properties. Smallscale partnering: If two or more people share the same goal and vision but bring complementing assets to the table, they can partner to develop properties. For instance, a party of three could be a realtor, contractor and investor. Using loans: Professionals who prefer greater financial independence and have good credit to boot might benefit from this arrangement. The story as told by CNN shared that not all of these approaches provided long-term benefits for the investor. It nonetheless offered lessons for him to fine-tune his next approach and execute the plan. One option not covered above is becoming a landlord. Forbes reports that for 2019, some cities in California saw monthly rent prices as high as $2,013 per month. An undersupply of housing is the main reason for this. Developers are unable to keep up with market demands as jobs bring more people in. This creates a great investment opportunity for the right professional with a competent team and sufficient capital.

Overhead expenses have a big impact on the breakeven and profit points of your business. No matter how much revenue your company pulls in, big overhead expenses can make it impossible for the business to become truly successful. The cost of the lease is not the only factor here either. Who is responsible for premises liability claims? What about utility bills? Will you pay the property taxes or will the landlord? The type of lease agreement impacts this. Forbes highlights the main four. Modified gross or full-service gross lease Business owners split some of the operating expenses and structural repair costs with the landlord. This includes utilities, property insurance and property taxes. This is included in a base rent, which typically does not increase even if operating expenses do. Triple net lease The landlord pays only for structural repairs. The tenant becomes responsible for everything else. This includes insurance, taxes and utilities. This is a risky lease agreement to sign up for, especially if you are new to business ownership and unfamiliar with property management. Double net or net-net lease Tenant pays for insurance premiums, property taxes and utilities. The landlord handles the cost of maintenance repairs. This might work well for buildings that are older and liable to have problems over time, such as with the plumbing or HVAC. Net lease or single net lease Tenant pays for the property tax and the utilities. The insurance premium is the responsibility of the landlord. The landlord also pays for maintenance and repairs. This is a good idea for buildings and spaces that have the potential to create liability issues. Some landlords and property managers might make it clear from the start that they only offer a certain type of lease arrangement. If that lease type does not suit you, you might be able to negotiate a better agreement with a professional’s help.