[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather
Santa Clarita CA
Mostly cloudy
Mostly cloudy
64°F
 
Calendar
Today in
S.C.V. History
November 14
1935 - Voters approve $22,000 construction bond to build a bigger Saugus School. WPA kicked in another $17,181. [story]
Saugus School


Commentary by Carl Kanowsky, Esq.
| Tuesday, Sep 3, 2019
Carl Kanowsky

Carl Kanowsky, Esq.

Jim came in to see me the other day. He was really excited. He was about to open his own comedy driving traffic school. He was going to name it “Fun While Drinking and Driving.”

He even selected a location for the classes. He met with the landlord and agreed on a 5-year term at a rental price he thought was a great rate.

He told me all this after he sat down. Then he asked, “I don’t really need to talk to you, do I? After all, I figured out where I’m going, how much I’m paying and for how long. What else is there to renting something?”

I asked him for a few details – things like the square footage and how much he was paying per square foot. I also asked if there were going to be any CAM charges.

He gave me a blank stare. “What are those?” he asked.

CAM. It stands for common area maintenance. Are you going to be responsible for the cost of taking care of areas beyond just your shop? If so, how much? And how is that calculated?

Jim had no idea. “How much are paying a month in rent?” I asked. “Four thousand a month for five years,” he replied.

“So, by signing this lease, you’re obligating yourself to pay almost $250,000. And you’re balking at spending $5,000 to make sure you understand it?” I asked.

“Let me ask you questions in just eight areas. If you can answer them to your satisfaction and you like the answers, then don’t hire me to look at the lease.”

“OK,” he said, confident he knew this lease backward and forward.

1) Do you have any renewal periods? If so, how many and for how long? What’s the renewal rate? Is it negotiable or predetermined? Do you understand how to exercise any rights to renew?

2) Can the landlord move you to someplace else if he decides to do so? Do you have any rights to prevent this?

3) Did you get any tenant improvement (TI) allowance? That is, the landlord agrees to reimburse you for some of the costs of getting the premises ready so that you can move in.

4) How long do you have to finish the TI work? Have you checked with a general contractor to see if the length of time is feasible? Have you had the place inspected? Do you know if it even meets code for what you want to do?

5) When do you have to start paying rent? Is it before your TI work is done? What happens if you can’t get approval from the city to do the work you want? Do you still owe rent?

6) Do you have an exclusivity clause in the lease? In other words, can other traffic schools open in the same center? If you do have an exclusivity clause, how expansive is it? Does it prohibit all traffic schools, or only ones like yours?

7) Did you sign a personal guarantee for the lease? If so, can you limit it at all?

8) The CAM questions I asked before. Are there any? How much are you responsible for? How is that calculated?

In my next few columns I’ll go over why each of these is so crucial.

 

Carl Kanowsky of Kanowsky & Associates is an attorney in the Santa Clarita Valley. He may be reached by email at cjk@kanowskylaw.com. Nothing contained herein shall be or is intended to be construed as providing legal advice.

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Opinion Section Policy
All opinions and ideas are welcome. Factually inaccurate, libelous, defamatory, profane or hateful statements are not. Your words must be your own. All commentary is subject to editing for legibility. There is no length limit, but the shorter, the better the odds of people reading it. "Local" SCV-related topics are preferred. Send commentary to: LETTERS (at) SCVNEWS.COM. Author's full name, community name, phone number and e-mail address are required. Phone numbers and e-mail addresses are not published except at author's request. Acknowledgment of submission does not guarantee publication.
Read More From...
RECENT COMMENTARY
Monday, Nov 4, 2019
In his November column, Santa Clarita City Manager Ken Striplin addresses the dangers of vaping and what the city is doing about it.
Monday, Nov 4, 2019
Light Up Main, coming up on November 16, has cemented itself as the most popular annual happening in Santa Clarita, Mayor Marsha McLean notes.
Sunday, Oct 20, 2019
In the employment law field, everyone’s talking about AB 5, the new law that’s supposed to address all the confusion about who is and who isn’t an independent contractor.
Saturday, Oct 19, 2019
Some people find the college financial aid process intimidating, if not overwhelming. But when it comes to completing the Free Application for Federal Student Aid, better known as the FAFSA, the fear is misplaced.
Thursday, Oct 17, 2019
New Medicare Plan Finder tool helps you pick your Medicare plan online.
Wednesday, Oct 2, 2019
In his message for October, Santa Clarita City Manager Ken Striplin invites the community to join in celebrating the Santa Clarita Skatepark's 10th anniversary.

Latest Additions to SCVNews.com
Two people were killed and four others, all students, were wounded when they were shot at Saugus High School Thursday morning.
2 Dead, 4 Wounded in Saugus High School Shooting
“Shooter, Shooter! There’s a shooter!” That was the first thing Saugus High School 10th-grader Nathan Ephren remembers hearing while he walked onto campus Thursday morning.
Saugus High Shooting Survivors Share Their Stories
Public officials released statements and posted social media comments Thursday in the wake of the Saugus High School shooting Thursday morning.
Officials Weigh in on Saugus High School Shooting
The Santa Clarita community responded quickly to come to the aid of those affected by the shootings at Saugus High School Thursday morning.
Community Reaches Out to Those Affected by Saugus High Shooting
It was like any other day of the week for the Branch and Beltran families — making breakfast, getting ready for the day’s routine — until they heard a swarm of police surround Saugus High School on Thursday morning as an active shooter incident developed.
Centurion Way Residents React to Saugus High Shooting
1935 - Voters approve $22,000 construction bond to build a bigger Saugus School. WPA kicked in another $17,181. [story]
Saugus School
Today in SCV History (Nov. 14)
The Los Angeles County Board of Supervisors voted Tuesday to approve the transfer of the operation of the John Anson Ford Theatres to the Los Angeles Philharmonic Association.
County Names LA Phil New Operator of Ford Theatres
The candidate filing period for the March 3, 2020, Presidential Primary Election is now open, Los Angeles County Registrar-Recorder/County Clerk Dean C. Logan announced Tuesday.
Filing Period Now Open for 2020 Primary Candidates
The Greater Los Angeles County Vector Control District will hold its regular meeting, Thursday, Nov. 14, at 7:00 p.m.
Nov. 14: Greater LA County Vector Control Regular Meeting
Five College of the Canyons students won the People’s Choice Award at the International Interior Design Association's LA Haunt Couture show on Thursday, Oct. 24.
Five COC Students Win Interior Design Award
The Los Angeles County Board of Supervisors passed a motion authored by Supervisor Janice Hahn and co-authored by Supervisor Sheila Kuehl Tuesday to address the Board and Care crisis throughout the county.
LA County to Intervene to Prevent Board and Care Closures
Santa Clarita Valley Sheriff’s Station deputies detained a man Wednesday who reportedly threatened to jump from a freeway overpass, after a reported disturbance on an out-of-town bus trip.
One Detained in Bizarre I-5 Freeway Disturbance
With the holiday season just around the corner, the College of the Canyons School of Visual and Performing Arts, or VAPA, has an exciting lineup of shows that are sure to delight family and friends of all ages well into the next year.
COC Visual, Performing Arts Sets Holiday Concerts at PAC
The Women’s Council of Realtors of Santa Clarita Valley invites local residents to help celebrate the installation of its 2020 Board members at the Sand Canyon Country club on Friday, November 22, at 6 p.m.
Nov. 22: Women’s Council of Realtors to Install 2020 Board
Santa Clarita veterans and residents are invited to board a Santa Clarita Transit coach for a patriotic ride to Knott’s Berry Farm for on Sunday, November 17.
Nov. 17: City Bus Service to Knott’s for ‘Military Tribute Days’
The Los Angeles County Board of Supervisors approved a motion by Supervisors Kathryn Barger and Hilda Solis that adopts a framework and associated funding to help the county's cities address their individual homelessness challenges.
County Adopts Initiative for City Homelessness Funding
The Sulphur Springs Union School District board of trustees was scheduled Tuesday to consider the authorization of a $78 million bond measure to be placed on the March 2020 ballot.
Sulphur Springs Considers $78M School Bond Measure
The Santa Clarita Valley’s top cop, Capt. Robert Lewis, took a moment Tuesday to reflect on a county report showing the SCV Sheriff’s Station received the second-highest number of commendations from the public and tied for third place for receiving the most complaints among Los Angeles County sheriff’s stations, bureaus and divisions.
Capt. Lewis Reflects on Latest OIG Findings
The Santa Clarita City Council voted Tuesday night to extend a temporary ban on new sales of flavored tobacco products through October 2020.
City Council Extends Moratorium on Flavored Tobacco Products
Governor Gavin Newsom and First Partner Jennifer Siebel Newsom joined the California Museum, the state's official history museum, in announcing the 13th class of inductees into the California Hall of Fame.
Dec. 13: Induction of California Hall of Fame 13th Class
Detectives from the Santa Clarita Valley Sheriff's Station would like to hear from Castaic residents who might help solve a series of property thefts from vehicles late Monday night.
Detectives Seek Info on Vehicle Property Thefts in Castaic
Department of Water Resources officials lifted a caution advisory Friday about the threat of algae for both Pyramid Lake and Castaic Lake.
Algae Threat Removed for Pyramid Lake, Castaic Lake
A man identified by deputies as a transient was arrested in Newhall on the weekend on suspicion of attempted arson after allegedly setting magazines and papers on fire and then throwing them in planters.
Detectives Arrest Transient on Suspicion of Attempted Arson
1966 - Pico No. 4 oil well listed as a National Historic Landmark [story]
Pico No. 4
%d bloggers like this: