City officials are cracking down on building code violations. A number of hotels in the last year have been targeted by city inspectors for “dilapidated” conditions. These conditions include exposed electrical wiring, leaking plumbing, unpainted walls, trash debris in the parking lot, inoperable smoke detectors, etc. The city is deeming buildings unsafe and dangerous in…
Continue reading…Incorporation, LLC vs. Corporation
Regardless of whether you choose to incorporate as an LLC or an Inc., it is important to limit your liability by holding ownership interest through an entity as opposed to an individual. If you own any property in your name personally, we highly recommend you transfer your interest to an entity that you can own…
Continue reading…Loan Document Review
You’re at the closing line, escrow is about to wrap up, financing has been negotiated and approved, and then the bank sends you a stack of loan documents prepared by their attorney to review. These documents are full of provisions that limit your actions during the life of the loan, and do much more than…
Continue reading…LA Hotel Worker Protection Ordinance
Panic Buttons A panic button device must be given to all employees working in guest rooms or where other employees may not be present. We would advise these devices be given to all housekeeping, houseman/women, and maintenance staff. Device must have GPS tracking and direct contact to security guard or supervisor. Hotels 60+ rooms must…
Continue reading…Leasing Hotel vs. Management Company
Increasingly, hotel owners are choosing between leasing their properties and hiring a management company. Below is a list of Pros and Cons to consider for each arrangement. Leasing Hotel PROS: Lessee takes on the financial, operational, and legal burden Lessor receives a guaranteed fixed monthly amount Safe and secure CONS: Significantly limits…
Continue reading…1031 Exchange – Things to Know
While many experienced real estate investors are familiar with the 1031 process of avoiding capital gains tax, they may not be fully aware of their options. Generally, there are 4 different types of 1031 exchanges: The most common, Delayed Exchange: current property is sold, and then a replacement property is purchased within the allowed time. The…
Continue reading…California Mandatory Retirement Plan Explained
California implemented a new mandatory law requiring all companies with more than five employees to offer a retirement plan to their workers by June 30, 2022. Companies that don’t will be required to enroll in CalSavers, the state-sponsored individual retirement account (IRA). Participating employees would elect an amount to save as part of their payroll deductions. Business…
Continue reading…Commercial Loan Document Review
Before signing a commercial loan agreement or agreeing to an LOI, be sure to review and negotiate the terms with particularity. Loan documents are prepared by the Lender’s attorney. Thus, many terms may benefit the Lender, but limit protections for Borrower. Below are just some of the most consequential terms that you should read and…
Continue reading…Robles v Domino’s Ends in Settlement After Six Years of Litigation
After years of litigation, the parties in Robles v. Domino’s decided to settle. The terms of the settlement are not public. However, there are a few takeaways from this case that are important for business owners to know: The Ninth Circuit affirmed that to be covered by the ADA, a website or mobile app must…
Continue reading…U.S. Supreme Court Finds Certain PAGA Claims Subject to Arbitration
The Supreme Court held that individual claims arising under California’s Labor Code Private Attorneys General Act (“PAGA”) can be compelled to arbitrate. Background: PAGA permits an employee to sue their employer for Labor Code violations on behalf of the State of California and share in the recovery. Moriana, an employee of Viking River Cruises, signed…
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