Frequently Asked Questions
How do I pay my rent?
Once you are a tenant, Biagini Properties, Inc. mails you an itemized rental statement every month with a payment stub and pre-addressed return envelope for your convenience. Rent and other monthly obligations are always due on the first of each month, even if our statement does not reach you. All rent checks should be mailed to “Biagini Properties, Inc.” at 333 W. El Camino Real, Suite 240, Sunnyvale, CA 94087. Please be aware that late fees may be applied to your account if rent or other sums due are not received by the date indicated in your lease.
Why do I pay Common Area Maintenance (CAM), Insurance and Real Property Tax Contributions every month?
All retail leases are triple net (NNN) leases. These are leases in which the tenant pays a pro-rata share of CAM expenses, insurance premiums and real property taxes, in addition to base rent every month. CAM expenses may include, but are not limited to, items such as the cost of parking lot lighting, landscaping, security services, refuse collection, asphalt repairs, property management fees, etc.
What are the NNN Expenses
NNN expenses include common area maintenance expenses, real property taxes and insurance.
A budget of estimated CAM, insurance and Real Property Tax expenses is set every year. Each tenant’s pro-rata share is calculated and tenants are billed one-twelfth of the annual estimate each month. At the end of each year, we compare the actual expenses against the sum of your monthly contributions. If we under-collected, you will be invoiced for the amount due and if we over-collected, you will receive a credit.
How is my pro-rata share calculated?
A tenant’s pro-rata share is the percentage that the square footage of the leased premises bears to the gross leasable area (GLA) of the property.
What type of signage is available?
Commercial properties are required to comply with sign codes and ordinances applicable in the city in which they are located. Signage in some commercial centers is controlled by operating agreements between property owners. In addition, most properties have an individual sign criteria incorporated into their leases. The sign criteria generally allow for a facade sign and placement on a monument sign, if available. Some properties allow placement on directory boards or under-canopy signs. In addition, signage may generally be installed on the inside surfaces of storefront windows. Banners, A-frames and pennants are generally not permitted by city codes, lease agreements or by individual property sign criteria.
Do I need insurance?
All leases require that tenants carry commercial general liability and property damage insurance in an amount of at least one million dollars combined single limit. Higher limits may be required in some cases. In all cases, the landlord is required to be named as an additional insured. Biagini Properties, Inc. requires that tenant provide evidence of coverage prior to taking possession of the premises.
How do I handle repairs and maintenance requests?
Retail leases typically require that tenants maintain the leased premises in good condition and repair. Typically, once the landlord turns possession of the premises over to the tenant, the tenant is responsible for all repairs and maintenance work inside the leased premises. Tenants are free to hire the contractor of their choice for such repairs, as long as the contractor is fully licensed and insured, and is qualified to perform the repairs. Alternatively, you may contact your property manager, who may be able to send a contractor on your behalf, and will bill you for the expense once the work has been completed.
How is my square footage measured?
Subject to particular lease agreements, most commercial retail spaces are measured from the midpoint of all common walls to the outside surface of the predominant building material of the exterior walls. Office buildings typically carry a load factor which includes a percentage of public areas such as lobbies and corridors.
I want to sell my business. How do I proceed?
Selling your business and assigning your lease can be a complicated and emotional process. Outlined below are the steps we recommend to complete this process.
- The first step is to locate a qualified buyer. You may wish to hire a business broker for this purpose.
- The second step is to qualify the buyer, in much the same way you were qualified as a tenant. Have your buyer fill out the Lease Application and Questionnaire for Prospective Tenants and send to your property manager.
- Your property manager will want to talk with you at this point about a potential assignment of the lease agreement from you to your buyer. Your property manager will explain that selling the business and assigning the lease agreement does NOT relieve you of responsibility under the lease agreement.
- Once the buyer has been qualified and both buyer and seller understand the terms of the assignment document, your property manager will prepare an Assignment for review by all parties.
- The assignment is complete when buyer, seller and landlord have signed and exchanged all documents, when the assignment fee has been paid to landlord and all rental obligations have been brought current.
- Transfer of possession of the leased premises to the buyer may take place only after the assignment process has been completed.