Live/Work Space Lease Agreement Nightmare

3 Replies

Hi Guys,

I have a situation, and hoping one of you rockstars can give some insight. I am renting a live work space in phoenix, ( upstairs full apartment, downstairs full commercial space with windows and separate entrance, also keyed bathroom for clients to use). I am coming up on my one year anniversary tomorrow. I have a small natural hair studio (which was discussed prior to renting with the rental office), and things went well and I was offered to enter a new lease for 15 months ( will start on the 16th). I signed the new lease on October 29th. In preparation for my one year anniversary, I submitted a flyer to the office about a small event celebrating and offering new services (express facials, derma plane and eyebrow waxing).  Here is where it gets sticky. Yesterday I got a call from the assistant manager stating that I was not allowed to perform any services that the commercial salon tenant was performing. she saw the flyer and was very upset about the facial offerings. I informed her that I had no language in my lease restricting my services or business for my space and needed to only be sure I was in standards of arizona law for my space. I said I would need to connect with her regarding the issue. I sent a follow up email 20 minutes later, after reviewing my old and new lease to be sure that I did not miss anything. I inquired as to how I was in breech if nothing was given stating that I could not complete any services the other salon is offering. 24 hours later I had not received a response. I went into the office today to talk, and was not received warmly at all. I was told that although my lease does not state it, I am not allowed to provide any services that are being provided by the commercial tenant due to a non compete clause. When I asked how is that possible when I wash blow dry and style hair, as she does ( have been for 364 days now) and she does the same. I would not have been in compliance at day one of my lease. I was then told that I said I was only doing "specialty hair". I asked her what did that mean? She tried to backstep. but you get the point. At any rate, after being repeatedly told I would not be given anything in terms stating what I am and am not allowed to do I left. I later received this email.

( Received at 4:07 PM)

"Hi Elisa, 

I’m sure we both aren’t happy with how our meeting transpired today. I sincerely, genuinely want you to be happy and run a successful business. However, I checked with David and he did confirm that Salon D’Shayn does have a non-compete clause and that your lease advises that you cannot run business’s out of your home which means you must get approval to do so.

I explained to D...... that you asked about your renewal lease and potentially breaking the lease. He fully understands your need to expand your business. Any good business person would naturally do that same. We can waive the termination fee with a sixty day notice to vacate given before the renewal starts on 11/16/2018. Once the renewal goes into effect, we will have to hold you to the standard buyout agreement.

What are your thoughts?""

So I am now trying to figure out:

1: I rented a live work space of which I have been operating out of for a year, so now I don't have permission to operate a business from my home? There is no clause in my lease that even says no business operation from my home. Aside from the fact that I am rented a walk up live work space.

2. As of October 29th both the property manager and I signed the new lease agreement, that also has no language of a non compete, or any restrictions on services to be offered in my shop. Is it legal for them to try to force me to make a decision to vacate my now (home and business location in 60 days), in less than 24 hours?

I have looked at Landlord tenant law and everything else and can't find anything that fits this scenario. 

Please help however you can.

Much thanks in advance,

Elisa

@Elisa Gary You need an attorney to review this, preferably one that is in the AZ real estate/landlord-tenant arena.

This post has been removed.

This post has been removed.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here