All Forum Posts by: Lily W.

Quote from @Mil Sanghvi:

@Lily W.

@Dominic Mazzarella

Lily, I have multiple CBD tenants. It is usually the businesses that are held liable. If there are any issues, the local city/county will not be issuing the tenant a business license to begin with. 

Please make sure the lease is NNN (triple net) to cover all your costs. I would recommend getting a minimum of 10k in security deposit which is typical in addition to signing a long term lease. 3+3+3+3+3 = 15 years. It will make the lender happy.

-Mil 

Currently they want to start with 3 year NNN lease with option to renew. Currently requesting 6 month security deposit.

Quote from @Michael K Gallagher:

@Lily W. I would do similar due diligence on the operator and any other sites they may have, personally I may also go secret shop those centers to understand if they are actually doing CBD or just marketing that and actually running a "trap shop" under the blanket of CBD or "THCA", while you likely won't have much issue legally given its Cali, but I've seen many of these shops pop up in my market since legalization and the farm bill, and I'd just want to know if I was getting that as cliental or like actually a CBD wellness yoga type place.

Looks like they are a first time operator for CBD, but they've noted they've been in the space & in consulting for CBD stores. I would have in the lease regular inspections & also a clause for termination if anything else was sold. Also requesting 6 months security desposit in worse case scenario of evictions. Secret shop sounds like a great idea and great advice that I'll go ahead and try

Quote from @Dominic Mazzarella:

Quote from @Lily W.:

Hi BP,

I have been getting multiple potential tenants inquire about renting my commercial space for a CBD retail store. (Unincorporated LA)

I wanted to get any insight on lease terms in regards to any restrictions to include and if there's any issues or additional considerations I should consider?

Currently from my research CBD is legal both Federal & State of CA.

Would love to get insights from anyone in the space or has experience renting to these types of tenants.

Thank you

Even with CBD being federally legal, you’ll still want to be extra clear in your lease. Make sure it restricts illegal activity under federal, state, and local law just in case regulations shift.

Also, check if your insurance carrier is okay with CBD retail tenants. There’s a really good chance they won’t like it. Which isn’t the end of the world, as there are multiple insurance carriers who will support this. But you might have to shop around a bit for the right carrier and it might make your premium go up. 

Also, if you have a loan on the property, your lender might have their own restrictions. So it’s worth running it by them if the property has a loan on it.

If everything lines up, you might want to include lease language around signage, odor control, and customer traffic just to avoid any potential headaches.

Thank you for all the insights Dominic, I took your advice and I went ahead and reached out to the lender regarding restrictions. Is there specific signage I should be requesting the tenant? I am requesting them to have air filters in case of any odor control, channel letters for their sign, haven't figured out how to work in customer traffic yet though. 

Hi BP,

I have been getting multiple potential tenants inquire about renting my commercial space for a CBD retail store. (Unincorporated LA)

I wanted to get any insight on lease terms in regards to any restrictions to include and if there's any issues or additional considerations I should consider?

Currently from my research CBD is legal both Federal & State of CA.

Would love to get insights from anyone in the space or has experience renting to these types of tenants.

Thank you

Hi BP,

I have been getting multiple potential tenants inquire about renting my commercial space for a CBD retail store. (Unincorporated LA)

I wanted to get any insight on lease terms in regards to any restrictions to include and if there's any issues or additional considerations I should consider?

Currently from my research CBD is legal both Federal & State of CA. 

Would love to get insights from anyone in the space or has experience renting to these types of tenants. 

Thank you

Southern CA, LA county

Hi BP,

Just wanted to get thoughts on different heating options.

I need to install a new heating system in one of my apartment units (approx 580 sqft) but wanted to get thoughts on whether an Electric Wall Heater was a good option? So far based on quotes I've been getting, installing electric wall heater is significantly cheaper than HVAC quotes. Currently have ceiling fans in the apartment and its a 1 bedroom. 

For context electric wall heater quotes have been around $1300-$2000
For HVAC dual mini split has been $5K+ 

If anyone has installed an electric wall heater I would love any thoughts/suggestions. Or if there are better alternatives

Thanks!

Quote from @Mike Tamulevich:

Hi, Serafin!

At Marketplace Homes, we require all applicants to connect their bank accounts directly through Plaid to verify their income right from their account. This helps us avoid manually checking bank statements, which can unfortunately be forged pretty easily. People can alter PDFs, change the numbers, or even use fake templates that look incredibly real. Some red flags to watch for are inconsistent fonts, blurry text, or mismatched information across pages. When in doubt, always double check. In today’s world, you can never be too careful, unfortunately!

Good luck!

I second this! I've caught fake bank statements from potential tenants and it was just because the font looked slightly off. The bank statement itself was real BUT they changed the name of the person on the account to theirs. It seemed like they borrowed a relatives bank account and edited the name & address to theirs. I also took the statement to the bank & they were able to verify that it was forged. 

@Audrey Sommer I've found that Zillow Rental Manager has worked best for me. You just need to sign up & pay. They also offer a free trial period.  I get the most responses and active users from their platform which posts on zillow, hotpads & trulia all at the same time. I would recommend that you screen your tenants and have them complete a background check with a company of your choosing and not just accepting Zillows in house background check that some of the tenants already have. (I've noticed that zillows in house background check is not great & not reliable based on my previous experiences with them)

Wanted to see how others are marketing their commercial units to find potential tenants? Are you doing it yourself? Or have you hired a team to do it? Would love to hear what's worked recently.