Fountain Valley, CA asked in Landlord - Tenant and Business Law for California

Q: Can I work with the property manager directly if I buy business and take over lease from the previous business owner?

I am buying a business and trying to take over the lease from the previous business owner. I sent emails to the property management company and they said I had to send my documents through the previous business owner; and I couldn't talk to the property management company directly but have to talk to her through the previous business owner. The property management company processes qualification screening but uses my net income after deduction instead of gross income before tax. Is the property management company doing things correctly and legally?

1 Lawyer Answer
James L. Arrasmith
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  • Landlord Tenant Lawyer
  • Sacramento, CA
  • Licensed in California

A: If you are buying a business and taking over the lease from the previous business owner, you should be able to work with the property manager directly to transfer the lease to your name. However, the property management company may require you to provide certain documents and information, such as proof of insurance, financial statements, and business license, in order to qualify for the lease.

Regarding the property management company's requirement to communicate with you through the previous business owner, this is not a legal requirement, but it may be a requirement of the lease agreement between the previous business owner and the property management company. You may want to review the lease agreement to see if it contains any language that restricts your ability to communicate with the property management company directly.

With regard to the property management company's use of net income instead of gross income to determine qualification, this is not uncommon in commercial lease agreements. However, you may want to review the lease agreement to ensure that it does not contain any language that conflicts with this approach. If you have concerns about the property management company's practices or the lease agreement, it may be advisable to consult with an attorney who specializes in commercial leasing to advise you on your rights and options.

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