Hotel City Code Violations

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…

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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…

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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…

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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…

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California Pay Scale Law – Effective 1/1/23

Effective January 1, 2023, Senate Bill 1162 requires California employers to include pay scale information on job postings and report certain pay data. Employers are still prohibited from asking applicants about their pay history including compensation and benefits. For All Employers:  If an applicant requests the pay scale for a position, you must provide it….

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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…

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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…

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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…

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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…

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