Before moving into a rental unit, chances are your landlord will require you to pay a security deposit. And when the time to move comes around, you will be delighted to know that your security deposit will be coming your way. However, this is never granted.

Your landlord can make certain deductions on your security deposit, and it helps to have a clearer idea of the reasons why this can happen so you can take appropriate steps to ensure that you get this amount back in full. For starters, you may want to carefully read your lease contract’s fine print so you understand what you are getting into.

Here are two reasons why your landlord may make deductions on your security deposit.

You substantially damaged the property

As a tenant, you are expected to live in the rented property in a responsible manner and leave it in the same condition you found it when moving in. Of course, there is acceptable wear and tear. However, extensive damages to the property such as broken cabinets or doors, holes in the walls or cracked countertops can cause problems when leaving the property, especially if you were responsible for these damages.

Unpaid rent

This should not be a big surprise. If you are behind in rent at the time of vacating the unit, then your landlord may withhold your security deposit for purposes of settling the rent arrears. That said, it is important to understand that while your landlord can deduct your security deposit towards unpaid rent, you cannot use this money to cover unpaid rent.

When you move into a rental property, you will be required to pay a security deposit to the landlord alongside the first month’s rent. However, it is important to understand the circumstances when your security deposit may be held by your landlord.

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If your business is expanding or opening a new location, or if you are opening your first location, it’s an exciting time. Chances are, you want to get all the paperwork out of the way as quickly as possible and start moving in. 

While it’s great to be excited, make sure you take time to read your commercial lease before signing carefully. Failure to do this can lead to some issues down the road. 

Lease length

You need to look to see what the term of the lease is as stipulated in the contract. Some landlords may tell you the lease is for a year, but it reads 18 months or longer in the contract. While this may not be on purpose, it’s important to know the lease’s term. Remember, once you sign, this is the amount of time you are legally contracted to pay for the space, even if you decide to move or close your business. 

Use information

Your lease will outline exactly how you can and cannot use the space. If you happen to engage in an activity or use that is not allowed by the contract, it can create significant legal problems. It’s important to know what is and is not allowed before signing so you don’t plan your next business move around something that isn’t permitted.

Rent increases

In most cases, the rent for commercial spaces will increase over time. The increase period and amounts should be stipulated in the lease. This includes when they will occur and how much the rent will be increased. 

Understanding your commercial lease

Before signing a commercial lease, it is important to understand the terms and know the conditions of having the space. With the tips above, you can avoid surprises and issues once you move in.

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You’ve gradually been building up your real estate portfolio for a few years now. It’s time to make your next move. You’ve spotted an ad and the property seems ideal at first glance. 

Acquiring the right properties is key to your commercial success, but you also need to know when to walk away. Outlined below are some clues that a real estate deal may not be for you.

A lack of interest 

Initially, you thought the property had just been placed on the market. Upon further inspection, you discover that it has just been readvertised, after a price reduction. The building sat on the market for several months before, with no formal interest being noted. Many people must have seen the spot before you got there, and you have to ask yourself why they’re not interested. If this is the “perfect deal”, then why has nobody else taken up the offer? 

A lack of disclosure 

Sellers have a legal duty to report fundamental flaws with a property. They must be open and honest if there is a presence of asbestos or other harmful substances for instance. You’ve inquired about this, and nothing has been mentioned. However, when you request to carry out some of your own checks, just to be safe, the seller becomes defensive. Honesty from the seller is crucial in any real estate transaction, and one thing is for sure, you do not want to discover flaws after you have committed to the purchase. 

You’ve already established your business as a real estate developer, which means you have natural instincts that are trustworthy. If you have any doubts, or you feel that your legal rights have been violated, make sure you further explore your options.

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Landlords and tenants frequently disagree about what is appropriate to do at a rental property. Tenants want all the conveniences of a home, while landlords want to protect their property from damage and other tenants from potential nuisances. 

Both real estate rental laws in California and residential leases help protect landlords and tenants and govern how they interact with each other. Guest, especially overnight guests, are a frequent source of conflict between property owners and their tenants. Can a landlord prevent their tenants from having guests or overnight visitors? Can they evict a tenant who has too many guests?

Tenants have the right to have guests within reason

California law gives tenants certain legal rights, including the right to host guests at the property that they rent. However, landlords can and typically do include limitations on those rights within their leases. If a tenant violates the lease, they open themselves up to expensive fees and possibly eviction. 

Reviewing your lease documents can help you figure out what restrictions are in place. Often, landlords might limit someone to a fixed number of overnight stays per month or limit how many consecutive overnight stays a visitor can have without prior agreement. 

The landlord may be able to make exceptions when notified in writing. They may even charge additional rental fees for long-term guests because of how they contribute to wear and tear at the property and also utility expenses. In situations where tenants try to hide overnight guests, refuse to notify their landlord or won’t pay appropriate fees, there could be security deposit claims or possibly even evictions that result from the conflict. 

Knowing what laws affect landlord-tenant relationships and help either party advocate for themselves during a dispute.

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A business partnership is a bit like a marriage. You and the other party have shared responsibilities, risks and benefits from the relationship. The arrangement is one that you enter into through mutual agreement and that either party can later end.

Conflicts with a business partner could lead to intense personal stress and possibly the closure of your business if you can’t resolve things amicably. There are ways for you to potentially avoid some of the most destructive conflicts that could affect your business partnership.

When you draft your partnership agreement, you put yourself in a position to avoid those potential future conflicts.

Talk openly about your roles

One of the most important steps when you enter a business partnership is to talk thoroughly with the other party about what you intend to do with the business and what you expect from them. If you don’t have clear expectations, you might want things that the other is incapable of providing.

Have a plan for conflicts

Another crucial inclusion in your business partnership agreement is a clause discussing what happens if you disagree about something. For example, if a big corporation offers to buy your business, one of you may want to take the offer while the other one staunchly refuses. You need to have a system in place to resolve that conflict and make a decision that both partners can accept.

Create a viable exit strategy

Do you expect that your partner will retire before you because of the gap in your ages? If so, you need a plan in place to buy them out of the business when the time comes.

Do you expect that you will be the one who moves on first because this is merely a stepping stone toward a different career path or a way to generate money for a future endeavor? You should include clear instructions about how you will separate your interest in the company.

Even if you have already started a business with someone else, you always have the opportunity to clarify certain matters. You can then update your partnership agreement or draft a new one if you never formally signed something at the start of your business. Being proactive about preventing partnership disputes can help you start and run a business with another person with minimal complications.

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If you own a business, a common goal is to grow and expand. As your operations grow, it isn’t uncommon to require additional space. 

However, before purchasing another commercial property for business operations, there are a few considerations to make. This big of an investment requires you to be confident in your purchase. Here are a few things that you need to look at very carefully:

Location

In real estate, you have likely heard that location is everything. This is true in many ways. As a business owner, you want to ensure the property’s location works for your business. For example, if you run a financial company, being located in the city center or another hub of activity is best. 

Space needs

You likely know your current requirements for space for the business. However, are you planning on going growth? If so, you need to purchase a commercial property that can accommodate your growth for the coming months or years. If you can only find something to accommodate your current needs, leasing may be a better option than buying, as it is not as much of a long-term commitment. 

Building condition

If you are purchasing commercial property for immediate use, it is important to ensure the building is structurally sound and free of any major issues. Investing in a full inspection before the purchase is recommended to ensure there are no hidden or unknown issues that will require repair before you can begin using the space. 

Making a smart commercial real estate investment

Investing in new commercial real estate can help facilitate your business’s growth. However, finding the right property is essential to avoid potential pitfalls. With the tips above, you should know what to look for and consider before investing in commercial property to accommodate your business’s growth.

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Finding the right real estate agent to help you land the perfect investment property is like finding a five-dollar bill on the ground. It’s a miracle when it happens and feels so good when it does. Yet sometimes, the search does not go so well.

Here are a few red flags to keep watch out for when looking to see if your real estate agent is fulfilling your needs:

A poor agent will cause you to miss opportunities

While this may not be the most extensive list of everything your real estate agent may be doing that’s causing you to lose out on a great investment deal, these issues should raise alarms:

• They don’t communicate in a timely manner. Landing a great real estate investment property may mean being the first on the scene, and if your agent is late to the game, that could mean losing a great deal.
• They don’t consider your preferences and limitations. Knowing your price range and where you want to invest or develop is important. If your agent fails to acknowledge that, then they haven’t been listening to what you want.
• They aren’t as experienced as they advertised. You may come to find out your agent lacks some of the skills most beneficial to your deal. That can put you at an extreme disadvantage. 

Finding out your real estate agent isn’t who you need can be heart-wrenching – but not every agent is willing to end their contract with an unhappy client peacefully. If that’s your situation, you might need to seek legal help and explore the possibilities.

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The make-up of commercial real estate (CRE) has gone through significant changes over the past couple of years throughout the U.S. and worldwide. Even CRE experts don’t know yet how many of those changes will be permanent – particularly when it comes to the need for office space. 

Many businesses have downsized their office space as more employees have found that they can continue to work effectively from home. What does that mean for those who are considering investing in office properties here in Los Angeles in 2022?

The vacancy rate is among the lowest in the country

In January, the vacancy in metro LA was 13.5%. That’s only 10 basis points below what it was in January 2021 even though several million more square feet were added last year. LA’s vacancy rate for offices is below the national average. By comparison, San Francisco had just under a 16% vacancy rate. Manhattan had the lowest office vacancy rate in the country at 12.8%

Optimism about the future for office space in the commercial business district (CBD) of LA is evidenced by the redevelopment of California Market Center (CMC), which will bring 1.5 million additional square feet of office space to the area. 

Adidas will occupy the uppermost two floors as the anchor tenant at CMC. The mixed-use space is home to retailers, hotels, offices, showrooms, restaurants and more.

Investing in and developing commercial space in the Los Angeles area is always a challenging and ever-evolving endeavor. Having experienced legal guidance every step of the way can help prevent unnecessary problems and help you deal with obstacles as they occur.

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If you’re thinking of investing in real estate, you’ve probably watched the prices for both residential and commercial properties go up substantially in the last few years. On one hand, this makes you feel as if investing in real estate is a good idea since it is clearly lucrative. On the other, you may be worried that we’re in a real estate bubble and that it’s going to pop and send all of those prices plummeting once again.

There’s always risk in investment, but it is important to know exactly what you’re looking at. Are we in a bubble that’s going to decline in the near future, or are the housing and other real estate prices going to continue going up? 

Experts are still predicting growth

While it is possible to find people on both sides of this argument, it’s worth noting that a lot of experts believe that the growth is going to continue, at least in the short run. They’re very positive about the outlook for the market over the next five to 10 years.

They do know that this won’t continue forever, but they’re quick to point out that those who are buying homes still have good credit and income. This isn’t a situation in which a lot of the buyers can’t afford their mortgages. They can’t afford them, even as prices climb, so that means that it is far less likely to crash the way that things did back in 2008.

Should you start investing?

You can see why people are so interested in real estate investing in 2022. If you’re going to get into it, especially with a partner or a business, be sure you know exactly what legal steps you’ll need to take.

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Real estate professionals often have to answer questions from their clients about title insurance. Some people think that the entire system is a scam because of how rarely people need to make claims against their coverage. Others just want to keep their costs as low as possible and may not like needing to pay for two separate fees when buying a home with a mortgage.

Given how many buyers are unenthusiastic about paying for even basic coverage, the idea that you should suggest an enhanced policy may make you cringe. However, enhanced policies offer protection and more situations than basic policies.

What does a basic title policy cover?

A standard or basic title insurance policy will protect an owner against improperly executed or recorded deeds, as well as certain deeds and unrecorded restrictive covenants. It can also protect against fraudulent deeds created before the closing.

A basic policy does not protect somebody from attempts at fraud that start after they assumed ownership of the property or against building permit violations. An enhanced title policy can cover issues that arise after closing, boundary encroachment and even access rights.

If the point of purchasing the title insurance is to fully protect someone’s property investment against the misconduct and fraud of others, then an enhanced policy is likely a better investment because it protects the buyer in more circumstances than a basic policy.

Title disputes often lead to expensive litigation

In addition to protecting someone from the loss of what they invest in a property, a title policy can help pay for their defense in court. Issues with the public record or fraudulent deeds often wind up in civil court.

Explaining the rare possible circumstances that would result in a title insurance claim could help your buyers decide what level of coverage is best for their situation. Keeping apprised of changes in real estate law and the court of public opinion can make you a better professional support for your clients. Understanding how different forms of title insurance protect against real estate fraud can also help.

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