California Attorney and Real Estate Broker Chris Adishian answers the question, “How do I select good tenants? Evict bad tenants?” at the South Bay Association of Realtors’ event, “Commercial Attorney Panel-Hot Legal Issues for Commercial Real Estate” on March 5, 2014.


Question: “How do I select a good tenant and how do I get rid of a bed tenant?”

Answer: “In my property management company, we have a lot of commercial properties and commercial tenants and we also have residential. But folks, my answer is going to be primarily commercial here and I’m happy to answer questions about residential later.

But the things you want to do on the commercial side are to do a credit check obviously, maybe run a background check even, you may need to get their consent. But there are services any good law firm or property management firm can access which will allow you to receive: ‘Was there a prior bankruptcy? What’s their credit score?’ They should voluntarily give that to you.

And then you can look at the business: ‘Is this a viable business? Is it an In-n-Out Burger going in there or is it Mable’s Bead Shop? And how much rent are they paying?’ The branded chain tenants are sort of the highest probability of being able to fulfill the lease obligation in general, and the ‘Ma and Pa’ one-off stores are a little risky. But you’ve got to look at each one on a case-by-case basis, see what kind of assets they have behind them, you can ask for bank statements and those sorts of things. If you do those steps in conjunction with your leasing agent and call on his/her experience, that would be a pretty good way to start so you don’t have a tenant who moves in with a lot of promises and then stops paying rent after 2 months.”

About Adishian Law Group, P.C.

Adishian Law Group is a California law firm with a statewide practice in the areas of Corporate law, Employment law, Real Estate law and Mediation Services. Adishianlaw.com is one of the oldest continually operating law firm websites on the Internet. The firm serves its clientele via three offices located in the major business hubs of El Segundo, Palo Alto and San Francisco. As of March 2013, Adishian Law Group, P.C. has represented individual and corporate clients located across 20 California counties, 4 States outside of California and 9 foreign countries — in over 340 legal matters.

For more information about this topic or to speak with Chris Adishian:

Telephone: 310.726.0888 | 650.955.0888 | 415.955.0888

Email: askalg@adishianlaw.com

Social Media: @adishianlaw | LinkedIn | Facebook | YouTube


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