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  1. #1
    Join Date
    Dec 2015
    Posts
    2

    Default Landlord Won't Provide Keys Until Tenant Produces a Business License and Insurance

    My question involves landlord-tenant law in the State of: California

    I have not been able to enter or obtain keys to a commercial retail space that I rented on December 1. The landlord is stating that he will not turn over keys until I have a Business License and Liability Insurance. Both things I would obviously need to operate a business [and now have]. I am wondering if this is normal practice OR if I should ask for my next months rent to be pro-rated.

    Backstory...
    I've been in contact with the landlord since early October. He wasn't able to sign the lease until the week of Thanksgiving. I wasn't able to get a license until I had a lease, but being a holiday the offices were closed for 2 days and the responsible party to make the decision on my case was out for a week. When they got back their work was backed up and I wasn't seen until mid-December. There were a few other city issues that backed it up again and I didn't receive my license until last Friday.

    I'm all set now but it's Christmas Eve and the month is gone. Can/Should I ask that my next months rent be pro-rated? Can the landlord withhold keys if I have already paid? I had no plans to operate the business without the necessary documents but it would have been great to get in and take measurements so I could start building and ordering furnishings, but since I couldn't I'm a month behind [3 if you consider that I was trying to move in since October].

    Thank you for your advice!

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Landlord Won't Provide Keys Until Tenant Produces a Business License and Insuranc

    You need to read your lease and see what it says about the conditions you must satisfy in order to take possession.

    If you need to access the premises prior to having documents your lease requires that you produce in order to gain possession, or need a set of blueprints, that's normally something you would work out with your landlord.

    So, what does your lease say?

  3. #3
    Join Date
    Dec 2015
    Posts
    2

    Default Re: Landlord Won't Provide Keys Until Tenant Produces a Business License and Insuranc

    Hi Mr. Knowitall!

    I am new to this so bear with me, I have read through my lease again and these are the two lines that seem to be relevant to the issue.

    Early Possession: Tenant is entitled to possession of the Premises on ____ [left blank]. If tenant is in possession prior to the Commencement Date, during this time (i) Tenant is not obligated to pay Base Rent, and Tenant__ is __ is not obligated to pay Rent other than Base Rent. Whether or not Tenant is obligated to pay Rent prior to Commencement Date, Tenant is obligated to comply with all other terms of this agreement.

    Possession: If landlord is unable to deliver possession of Premises on Commencement Date, such date shall be extended to the date on which possession is made available to Tenant. However, the expiration date shall remain the same as specified in paragraph 2. If landlord is unable to deliver possession within 60 (or ___) calendar days after the agreed Commencement Date, Tenant may terminate this agreement by giving written notice to Landlord, and shall be refunded all Rent and security deposit paid.

    The Commencement Date is listed as December 1, 2015. Other than verbally telling me he wouldn't provide keys at the lease signing I don't see anything in the lease that says I needed these documents to gain access. Obviously I need these to operate a business but I would assume I could at least gain possession.

    I should have questioned this sooner, being new to the game I thought it was standard but then the kind people at City Hall told me that they hadn't heard of this happening before. And now I feel like I was just robbed of one months rent.

    Thank you!

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Landlord Won't Provide Keys Until Tenant Produces a Business License and Insuranc

    The unit was made available so anything regarding that issue is not relevant. It was whether you met the obligations imposed to occupy the space.

    Not sure why you needed a lease to obtain a business license. Even those that require an address for the business have allowances in place to issue the license pending proof of an address. Suggesting that anybody applying for a license not even knowing with any certainty they would be approved for the license has to enter into a lease, which may not be terminable simply because a license wasn't issued is unrealistic.

    You have provided only a portion of the lease provided by a landlord that appears to have some experience in the business suggesting he knows what he is doing. I suspect the lease to be quite a bit more comprehensive than what you have suggested here.

    You need to read the lease in its entirety. If you question what the landlord it might behoove you to start with asking the landlord to show you where he has reserved the right to deny possession until the terms described are met or you can always hire an attorney to review the document and advise you.

    and no idea what city this is but the requirements imposed is nothing out of the ordinary. It sounds like you have a smart and experienced landlord that knows what he has to do to protect his interests.

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