Burt M. Polson - Commercial Real Estate Broker

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Filtering by Tag: tenant

Understanding the lease - part five

Highlighting where we have been, in part one we compared a lease to a month-to-month rental agreement and what happens when your lease expires.

Part two defined the commencement date and why you should pay your rent on time if not early.

The use of the security deposit, property condition and maintenance was highlighted in part three.

Part four explained how to handle repairs and alterations, the landlord entering the premises, subletting and terminating a lease early.

I promised you we would be discussing the commercial lease, which we will start to do in this article. Fortunately, as I highlighted the major points of a residential lease, this laid the groundwork for the commercial lease because most of the terms are common to both.

The forms used

Just as there are several residential lease agreement forms available the same is true for commercial leases. In my locale, the majority of leases for most of the property types I handle use the 19 page (usually ends up being 31 or more pages) AIR CRE forms. CAR (California Association of Realtors) does offer a six-page commercial lease but is only suitable for basic properties when only a simple lease is needed.

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Understanding the lease - part 4

The lease is an essential document as it gives a tenant the right to use a property from the owner. Knowing the terms in the lease before you sign and during your use will provide you with peace of mind with minimal surprises.

In part one, you learned how a lease is a contract that creates a relationship which gives the tenant a right to use a property.

In part two we discussed the commencement date and the responsibility of paying the rent promptly.

Part three explained the uses of the security deposit and repairs & maintenance issues.

We are going to wrap up this portion of the series as we discuss alterations, entry, subletting and early termination as it pertains to the ten page CAR (California Association of Realtors) “Residential Lease or Month-to-Month Rental Agreement.”

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Understanding the lease - part 3

A lease can be an often skimmed-over document with most not concerned about its contents until a problem arises or the lease expires and you are wondering what to do next.

A lease agreement is a long-term contract bringing together two parties that details the relationship and what to do when it goes awry.

In part one, you learned how a lease is a contract that creates a relationship which gives the tenant a right to use a property owned by the landlord.

In part two we discussed the commencement date and the responsibility of paying the rent promptly.

We will continue our discussion on the ten page CAR (California Association of Realtors) “Residential Lease or Month-to-Month Rental Agreement.” We are referencing terms of tenant law in the State of California, but keep in mind I am not an attorney so be sure to consult with one if you have specific questions.

Here is what to know regarding security deposits, the condition of the premises, maintenance, and damage.

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Understanding the lease - part 2

Unfortunately, some leases can last longer than some marriages. Do not be caught in a lease you do not understand, a property that does not fit your needs, a landlord that does not seem to take care of their property, or a tenant who does not pass your qualifications.

I am currently working with a property owner of an industrial property and a winery tenant who wants to lease it for 15 years. Both parties are concerned with the terms in the lease and are investigating it and the property thoroughly.

In part one of this series of articles

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Understanding the lease - part 1

Getting stuck in a lease with less than favorable terms you do not fully understand can give you years of regret. Both landlords and tenants need to be sure they ask questions and know the specifics before signing.

Unlike purchasing real estate, the relationship created between a buyer and seller is relatively short-term lasting only a few months. A lease can be from one-year up to several decades so knowing what you are signing is important.

A lease is a contract between a landlord and tenant (often termed a lessor and lessee) that allows the tenant rights to the use of a property owned by the landlord for a period.

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House hacking - part 1

Have you ever considered an owner-occupied multi-family property? My clients Steve and Cheryl did, and it worked out well for them.

It seems that everyone is “hacking” something--house hacking has been around for decades, it is buying a one to four unit multi-family property, living in one of the units and renting the others.

Steve and Cheryl bought a four-plex ten years ago for 500 thousand dollars. It was a fixer-upper in need of upgrading and cosmetic improvements.  Today the property is valued at double what they paid, and now the rent income had doubled as well from what it was when they started.

You may not see such a massive return as Steve and Cheryl, but with a bit of work in finding the right property at the right price, and securing the right loan, you may be able to come close.

What is house hacking?

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Qualifying tenants - part 2

You are familiar with qualifying tenants and administering leases if you own investment real estate.  Whether your rental property is a house or a big box STNL (single-tenant net leased) property occupied by an Office Depot or Whole Foods you have qualified a tenant and executed a lease.

In part 1 of our focus of discussion was for a residential tenant, which is usually an individual or several individuals. Qualifying a tenant of this type is a simple process where you have the applicant complete an application, and as the landlord, you obtain credit, eviction, and criminal reports as well as contact their employer, past landlords and references.

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Qualifying tenants - part 1

Investment property owners must evaluate prospective tenants’ creditworthiness as an essential part of creating a solid return on their investment while mitigating any future potential issues.

It is essential to be thorough in evaluating and qualifying a prospective tenant for single-family rental homes. Many issues can develop from a tenant who may lack integrity in paying rent on time or even worse damage the property.

In commercial real estate investments, the value of the real estate is directly tied to the income derived, and therefore the tenant’s creditworthiness is essential. However, as in residential real estate much can go awry with the tenant’s use of the property.

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10 questions to consider before renting out a room - PART 2

Renting out a room is not as simple as taking some photos and posting on Airbnb, VRBO or craigslist. Not only are there governmental ordinances you must comply with in your area, but you should know how the law views each type of occupancy.

In part one of my article we discussed the different types of occupants and how they are granted use of your property--be sure to review part one for definitions of terms. In part two we examine property rights, level of care, control of property and required postings.

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10 questions to consider before renting out a room - part 1

An attorney friend approached me, “I have a great topic for your next article. With the city approving short-term hosted rentals people need to know what they are getting into.”

I was intrigued by his comment as he proceeded to unpack for me the laws governing an innkeeper and how that compares to a landlord-tenant relationship or the renting of a room in an owner-occupied home.

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Ten traits of a good tenant - part 1

Working with commercial property owners we oftentimes vett potential new tenants. The depth of the qualification process depends on the property owner’s desire or if a corporate identity, what the policies dictate. This could range from a “good gut feeling” to performing background checks, credit reports, reviewing tax returns and checking references.

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Why raise the rent? (Part 3)

In part 1 we discussed market value of leasable space and how demand plays a large role in determining rent. Part 2 highlighted a scenario we may see today where a landlord doubles the rent of a tenant. In this post we will examine some of the more subjective and objective reasons whether it is right or wrong for a landlord to raise the rent.

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