[WSBARP] Real Estate Question - Commercial Tenant Desires to Rent Extra Space for Use that May Include Air BnB

[Roger Moss]

Matt, your question can’t be adequately addressed without context about the landscape, meaning how client’s property fits into it, and the interrelation of other properties and occupants. Using the lingo of retail real estate, yours is a question about use and merchandise mix. 

Introducing AirBnb to a neighborhood or community unprepared for it can have explosive results, including legal claims for nuisance. If an HOA is involved, take care. 

So I recommend your client start by literally looking at things from some altitude. An aerial photo.

If there’s no neighbor or neighborhood issues of concern, it’s probably okay to permit the, provided the lease has a laundry list of regulations and restrictions, and perhaps a landlord cancelation provision (actually, make that definitely). I highly recommend against providing tenant an option for this use. Either deal with it up front, or make them ask later. That thinking also springs from experience leasing complex retail properties. 

I also always recommend a mediation provision be provided in the new lease. Not arbitration; just mediation. 

Roger A. Moss
Pacific Conflict Intervention 
415.371.9724 San Francisco
206.790.1971 Seattle
www.Pacific-CI.com 

Dictated in motion

> On Jun 27, 2019, at 2:37 PM, Matt Yates <matt at englishandmarshall.com> wrote:
> 
> Listmates:
>  
> I have a client who owns a small building in Southwest WA.  The bottom floor is rented out to a boutique restaurant and now bottom floor tenants would like to rent out the top floor as well.  Top floor was previously an apartment but could be converted to office space.  If current tenants rent out the top floor, they would like to have to option to subrent it as an Airbnb. 
>  
> Other than the tax implications which tenants are going to be assigned all responsibility for, are there any specific Airbnb issues that anyone has run into that would not be addressed by appropriate indemnification provisions?
>  
> Matthew D. Yates
> Attorney at Law
> Yates Marshall, PLLC
> 10000 NE 7th Avenue, Suite 200
> Vancouver, WA 98685
> Phone: (360) 449-6100
> Fax: (360) 449-6111
> matt at englishandmarshall.com
> www.yatesmarshall.com
>  
> ***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***
> 
> _______________________________________________
> WSBARP mailing list
> WSBARP at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbarp
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20190627/2f0a058b/attachment.html>