You may have found the perfect location for your business – but now you have to hash out the details of your lease with the potential landlord.

Unlike residential leases, almost everything in a commercial lease is up for negotiation. That includes certain “use” clauses that can protect your business far into the future – if you can get one.

WHAT’S AN EXCLUSIVE USE CLAUSE?

An exclusive use clause is always to the advantage of the tenant, not the landlord because it restricts what other tenants are permitted to do. In essence, an exclusive use clause grants you the sole right to do a particular activity in the plaza, strip mall or commercial building – over all other tenants (including future ones).

For example, imagine that you run a coffee shop. In order to protect your business, you want an exclusive use clause from the landlord that will prevent any other business from acting as your competition. If the bookstore at the other end of the plaza decides to install a coffee bar to encourage their customers to sit around and browse or socialize a little, you could ask your landlord to enforce your clause and make them stop.

Naturally, landlords aren’t particularly fond of granting exclusive use clauses. They’d much rather have the freedom to rent to whomever they choose, and putting restrictive covenants on their other tenants can make their commercial spaces less attractive.

So, how can you get an exclusive use clause out of your landlord? Generally, the more valuable you are as a tenant, the more likely the odds your landlord will capitulate. If you are looking to rent their “cornerstone” property, and have a well-established business and a solid customer base that is likely to bring significant foot traffic to the entire premises, you have more bargaining power than a new, untested business that’s very tiny.

Negotiating for the lease terms that you want and need isn’t always easy to do on your own. Because of the complexity, it’s wise to have some legal guidance before you sign on the dotted line.

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A business partner should be trustworthy and beneficial to a business. You should be able to rely on your partner to challenge the business and bring out new ways to improve the quality of work. Without them, you may feel your business wouldn’t be where it is today.

However, your first business partner may not be the right fit for you. Here are some signs of a bad business partner:

YOUR PARTNER DOESN’T IMPROVE THE BUSINESS

Do you feel like you’re the only one bringing anything into your business? Your partner may not do anything other than stand around all day and take a few calls. If your business partner isn’t doing anything for your business, then it may be time to find someone new.

YOUR PARTNER VALUES THEIR WORK ABOVE YOURS

Does it seem like your business partner feels superior to you? Your partner may not qualify what you do as work or beneficial to the job.

You may have to fight to show that your work matters. You may want a business partner that values your work just as much as you value theirs.

YOU CAN’T TRUST YOUR PARTNER TO HANDLE BUSINESS

Did you recently take a break and leave your partner to run the business, only to find the business was in disarray when you returned? You may be taking on extra work because you don’t feel your partner will do what’s required for the business. You may need a business partner who you can rely on when work gets rough.

THEY’RE A PROBLEM-MAKER, NOT A PROBLEM-SOLVER

Does your partner only ever show problems with your business without giving solutions? Your business partner may only be able to visualize the negatives and can’t provide problem-solving skills for the issues.

If you think it’s time to cut ties with your business partner, then you may need to reach out for legal help to provide you with your options.

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A positive side effect of business success and growth is gaining more and more customers. You might soon need to consider leasing industrial warehouse space to continue meeting customer demands.

These facilities can fill several needs, from facilitating product distribution to storing or manufacturing goods. Although warehouses may look alike, they are not built according to universal specifications. Before agreeing to lease the property, ensure it meets your specific and unique needs. Here are four things to consider:

CEILING HEIGHT

Square footage is undeniably critical in a warehouse, but so is the structure’s overall height. Ask for the exact dimensions or measure the space to ensure it can accommodate your business operations.

CLIMATE CONTROL

It might surprise you to learn that some industrial properties do not come with ventilation systems, heat or air conditioning installed. If you want to protect your goods and workers from the warm California weather, look for a well-maintained climate control system.

FLOOR CONDITION

Floors shoulder the brunt of all the heavy work that goes on inside a warehouse. They can suffer damage over time that could lead to potential disaster. Look for signs of heavy wear and tear and inquire about the weight limits of all flooring.

OUTDOOR GROUNDS

It is easy to overlook the areas outside of a warehouse, but they can be just as important as your indoor space. Check that the loading docks accommodate your trucking requirements and that the parking lot has sufficient room for employees, large vehicles and visitors.

These suggestions and a thorough knowledge of commercial lease regulations ensure you do not get saddled with a useless property. A legal consultation can guide you in making beneficial business decisions.

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You’re interested in investing in real estate, but you’d like to start an investment partnership. You believe that you and another business professional – or a friend or family member – will be able to have far more success together than either of you would have on your own.

However, you do want to make sure that you pick the right investment partner. How do you know if you have someone who can help you realize the success that you believe you’re capable of?

DO THEY HAVE THE SAME GOALS?

The first thing to ask is whether or not the two of you have the same goals. You may also want to ask them about their vision for the investment partnership. These goals can be as simple or as complex as you’d like, but you both need to have the same focus in mind.

DO YOU AGREE ON THE RESPONSIBILITIES?

You may both be investing money, but you’re going to have to divide some of the responsibilities as you run the partnership. The two of you need to agree on these roles in advance. Make sure that you talk about them and get it in writing.

ARE YOU INVESTING EQUALLY?

If the two of you are going to get the same return on investment or you expect to see the same earnings, then it’s also important that you’re investing equal amounts. You don’t want to get a business partner who expects to reap the same rewards without putting in nearly as much money or as much work. Both are very important.

Once you decide to start your investment partnership, then you need to know what steps to take to set it up and how to resolve a dispute if one should occur.

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You may have a tenant who lives in a multi-bedroom apartment. This tenant may think it’s easiest if they sublet the extra rooms to help pay their rent and save on money. If they can sublet each extra room for half as much as their rent then they’ll be coming out on top.

What if, however, you’re not so keen on the idea of your tenants subletting?

Subletting can make many tenants’ lives easier, but subletting can make the job of a landlord or management company a lot harder. But, is subletting actually a violation of your rights as a landlord? Can you forbid it? Here’s what you should know.

Subletting isn’t always legal

A lease agreement may or may not include explicit rules on subletting an apartment. California laws prohibit subletting only if the lease is clear that the tenant can not sublet. On the other hand, a tenant may be within their rights to sublet if their lease doesn’t say anything specifically barring subletting. 

It’s rare for a landlord to not allow a current tenant to sublet their apartment. Some landlords want to make it easy for their tenants to pay rent. However, this does not mean that you are entirely without options. As a landlord, you’re entitled to raise the rent up to 10% for each additional occupant, and you can still require a background check on the new renters. That gives you some security and helps protect your property values.

A good lease is the key to avoiding unnecessary disputes with your tenants. Experienced legal guidance can help you draft leases that are customized to your needs.

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As an investor, you’ve long focused on trying to help startups. You do this because there is the potential for tremendous growth. Everyone talks about wanting to have invested in Microsoft back when it first got off the ground or investing in Amazon back when it only sold books. But you know that the only way to achieve this level of success is to invest in small companies now and see what flourishes.

However, there are also many risks to doing this. It’s important to understand some of these risks and the different investment strategies you can use.

The business may not reach an IPO

Perhaps you plan to wait until the business offers an initial public offering (IPO), at which case the value should increase dramatically. But the truth is that only about one out of every 10 startups will ever reach this level.

Consumers may not be interested

Many startup owners have what they believe to be a terrific idea. It might be a new type of technology or some sort of innovation. But it’s one thing to hear their predictions about what this technology will do, and it’s quite another to see how consumers actually respond to it. It could be a good product that simply doesn’t generate much interest.

The owners may be unproven

It is true that many people who own startups have run multiple businesses in the past and have a lot of experience. But you also do have young startup owners who are trying this for the first time. The risk is higher with an unproven owner because they may mistakes due to lack of experience.

These are just a few of the things you want to consider while you determine how to invest. Be sure you know about all the steps you can take to protect yourself and to make this go as smoothly as possible.

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Most landlords hope that each tenant they lease property to will abide by the lease and pay their rental payments on time. While there are very responsible renters who will do this, there are often irresponsible ones who end up having to be evicted. 

Landlords in California can’t evict tenants just because they feel like it. Instead, there are some very pointed reasons why a person can be evicted. These include things like breaking the lease terms, failing to pay rental payments, and illegal activities. Others are also present. 

What’s the eviction process like in California?

The eviction process in this state isn’t quick. On average, it takes five to eight weeks to get someone out of a property. That time frame can be prolonged for a variety of reasons, so landlords should be prepared for a long-term battle to get their property back in their possession. 

There are six general steps that occur during the eviction process. The tenant can stop this at any time by vacating the property:

1. Notice is given to the tenant to fix the problem or leave the property
2. A complaint is filed by the landlord in the county court if the tenant doesn’t leave or fix the problem
3. Service of the Summons & Complaint to the tenant
4. A motion is filed by the landlord for judgment; however, the tenant can contest the eviction during this step
5. Court grants eviction then Writ of Execution is posted at the home
6. The sheriff’s office completes the eviction and returns the property to the landlord

It’s imperative that all landlords understand their rights, but they can’t neglect to learn about tenants’ rights. All of these work together to create situations that are beneficial to both parties while protecting them both. If an eviction is necessary, the landlord must ensure they follow the exact process to get the tenant out of the home.

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Many people choose to buy real estate rather than lease it so that their monthly payments lead to accrued equity. Businesses may decide to buy their premises for the same reason. The facilities that they purchase could be a major contributing factor to the business’s overall value.

Especially when someone has never purchased commercial real estate before, they may think that the process is just like a standard mortgage for a piece of residential real estate. There are multiple ways that commercial real estate loans are different than mortgages.

How much you can finance will be different

When you buy a residential property, you may be able to finance up to 100% of the property’s value. That won’t be an option with commercial real estate. Banks will typically finance no more than 80% of the price, and sometimes as little as 65%.

The duration of the loan will be different

Most mortgages last for 30 years, although some people sign 15-year mortgages. Commercial real estate loans often aren’t longer than 20 years, and many times, the repayment period lasts five years or even less.

 Interest rates will be higher

The interest rate a lender charges on a loan reflects the rate they pay to borrow money and the risk that they take. Many businesses fail, which means commercial loans can be more of a risk than mortgages. People will often do anything they can to keep their homes but may have less of a commitment to a commercial property. Banks will also charge more in interest, given the increased risk.

Learning about the differences between commercial real estate loans and residential mortgages can help you prepare to upgrade your business facilities to a property that you own.

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Partnership disputes aren’t all that uncommon. People often start out as partners with the same goals in mind, but as the business grows and changes, their preferences may change. One person may want to take the business in one direction while the other thinks they should stay the course.

Whatever the reason is for your partnership dispute, it’s not a bad idea to consider getting legal support to get through it. The sooner you can settle your dispute, the better it will be for your company.

What are some common reasons for partnership disputes?

There are dozens of reasons that partners might start arguing or have a conflict, but five common reasons include:

1. Thinking one partner is not contributing as much money or time to the business
2. Having differences in opinion about how profits or losses will be handled
3. Disagreements over which business opportunities to take
4. Frustrations over decisions being made without dual input
5. Professional misconduct, such as committing fraud

If you’re dealing with one of these issues (or any other), it’s a good idea to learn about the legal options you have. If your partner has breached the partnership agreement, it may be possible to expel them from the business. Alternatively, you may be able to go through mediation, or one of you may buy out the other partner’s share to run the business independently.

A well-drafted partnership agreement makes a difference

When you have a good partnership agreement in place, you’re much less likely to have disputes. Additionally, you can address how to handle disputes that do occur in the agreement, so you’re not left wondering what your legal options are.

Before you start a partnership, it’s valuable to get insight from business attorneys who can help you create your partnership agreement. If you didn’t do this, now may be a good time to talk with one about your situation and the options that may be open to you.

Many disputes can be settled. If you and your partner are at an impasse, now is the time to address your concerns to help your business move forward.

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For many people, purchasing real estate is a straightforward process. They tour properties they like, make an offer and then sign paperwork later. Unfortunately, there are occasional disruptions in that process.

For example, you may find out the week before closing that there is a serious problem with the property because of the inspection. The offer you made on the property no longer seems appropriate given what you now know about its condition. How do you resolve this matter with the seller and move forward with the property?

Put a price on the problem

The first and most important step when negotiating with the seller over a defect that turns up in the inspection is to figure out the financial impact of that problem with the house. Putting in new plumbing could cost a few thousand dollars in a modern house or cost several times more in a house with old plaster walls because of the extra work involved.

Once you know what the damage will cost you to repair, then you need to decide if it is enough of a reason to walk away from the purchase. Provided that your offer included an inspection contingency, you can potentially cancel the closing if the seller won’t meet you halfway by paying for repairs or agreeing to a lower purchase price.

Although it can feel unfair to have to walk away from a property because the seller didn’t disclose the defect, that may be the better option than moving forward with the purchase, especially if they won’t compromise on repairs or price despite the issue. Learning more about how to resolve real estate disputes that occur before closing will make buying a house less stressful.

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