Contact our Office: M 310-663-3521

We help “Restaurant Buyers and Owners” resolve situations before, during and after getting tangled up with the Real Estate Agents not versed in Retail Business Deals, attempting to trick potential clients into signing their slanted agreements. Examples are set forth below.

PENTHOUSE ADVISORS INC. RETAINER $5,500

Key Money Illegal Charged for Second Generation Restaurants: When Leasing Second Generation Restaurants, to determine if Property Owner can charge Potential Restaurant Tenants “Key Money” for the left-behind Equipment, labeled (NSF Sanitized) or (ETL Listed), Fixtures and Furniture found inside the vacant second-generation restaurant, consider the following RED FLAG Points:

  • It is illegal for Property Owners to allow Real Estate Agents to advertise “key money”—-defined as any demand for payment beyond lawful rent and security deposits, including fees for furniture, fixtures or equipment left in the Unit by previous tenants—as a condition for initiating or renewing a lease or to prioritize a tenant’s application. It is often an “under the table” payment demanded to get or renew a lease for items left in the unit (FF&E) furniture/fixtures/equipment or to prioritize a tenant’s application, which is against California and federal law.
  • Verify Ownership of the (FF&E): When Leasing out a Second Generation Restaurant one must verify Ownership of the (FF&E) Furniture, Fixtures and Health Department approved Equipment, labeled (NSF) Sanitized equipment or (ETL) Listed, to ensure they belong to the property owner.
  • Legal Alternatives: If a Property Owner wants to charge for items or services, they must be included in the written, lawful lease agreement and not demanded as a precondition for renting.
  • Leases should have language instructions about any Personal Property left behind.
  • Violations: Property Owner’s in violation of these fee restrictions may be liable for actual damages in a civil action.
  • As of April 2025, Property Owner’s are prohibited from charging fees for:
    • Paying rent or security deposits by check.
    • Serving, posting, or delivering notices, such as 3-day notices to quit.
  • Attached Equipment–RED FLAG: The “attached equipment” belongs to the Property.
  • It is Illegal for Property Owner’s to charge Potential, New Tenants “Key Money or fees for the “attached” equipment, such as, the kitchen hood, three sink compartment, hand sink, prep sink, mop sink, walk-in, built-in counters, shelving, finished flooring, finished ceilings, designer painted walling, designer fixtures, Build-in Bar, Mirrors, finished Rest Rooms, Decorations.
  • Any and all payments for the Non Attached “FF&E” must be made directly to the previous Restaurant Owner, under a LOI Asset Sale Purchase Agreement prior to the Tenant vacating the Premises, if and when available.
  • CALL NOW: OFFICE M 310-663-3521
  • PenthouseAdvisors@gmail.com

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RENT ABATEMENT ALLOWANCES FOR RESTAURANT REMODELING:

  • Restaurant New Leases: When Remodeling, Swapping “TI” Tenant Improvements with Rent Abatement Allowances to establish a rent commencement date this negotiation must be inline with the Health Department site evaluation appointments with the newly assigned Health Inspector, generating permitting and licensing to facilitate the ID or when the Business is Open, whichever comes first.
  • Call Penthouse Advisors INC., to negotiate for the New Tenant.
  • CALL NOW: OFFICE M 310-663-3521
  • PenthouseAdvisors@gmail.com

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RED FLAG “DRE Non Disclosure Violations” GRANDFATHER PROTECTION PERMITS

  • RED FLAG: When Real Estate Agents Leasing or creating Second Generation Restaurant Asset Sales do not disclose all the facts about the “Grandfather Protection Permit” when active, whereby remodeled, removing attached counters, non bearing walls, altering or changing the Floor Plan in any way will automatically expire the “Grandfather Permit” on file a very serious DRE Department of Real Estate Violation has occurred by Forcing the new tenant to comply with updating the Restaurant to current Health Department code compliance.
  • Example: A 750 gallon, inground, grease interceptor must be installed in the rear or front parking lot, with costs ranging up to approximately $75,000, paid by the New Tenant. Building and Safety Inspection sign off will run between a 8-12 months, followed by Health Department inspections between 5-7 months.
  • Example: The Tiny Bathrooms and bathroom entrance door to be brought up to ADA Americans with Disabilities Act, Code Compliance. The required work will rage between $12,000 to $18,000 per bathroom with permitting approval within 4-8 months.
  • Example: The serving counter must have a lower shelf in ADA height for customer payment to allow for Handicap use.
  • Example: One table inside the Dining area must be at ADA height and approved.
  • CALL NOW: OFFICE M 310-663-3521
  • PenthouseAdvisors@gmail.com

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RESTAURANT ALCOHOL LICENSING: EXPEDITERS OR REAL ESTATE AGENTS THAT GOT DEPOSITS, COULD NOT FINISH THE WORK AND DISAPPEARED:

  • Contact Penthouse Advisors INC. to collect the funds and recover the deposit given to the expeditor or Real Estate Agent who stopped performing the Alcohol Licensing.
  • Penthouse Advisors INC., will file a Small claims case on behalf of the Restaurant Owner and serve expeditor or Real Estate Agent, if within the statute.
  • Email Penthouse Advisors INC., a PDF of the Alcohol Licensing Contract with the Restaurant Name and Address, Restaurant Owners Name, email, cell, Expeditors Name, address, email, cell if a Real Estate Agent the Brokerage Name, Address, email, phone, cell. The total Fee charged and Deposit paid.
  • Email Penthouse Advisors INC., the agent’s performance of the Alcohol license process has stopped.
  • Email Penthouse Advisors INC., the amount of times the Expeditor or Agent was emailed, text, called to return the deposit and the responses received, if any.
  • CALL NOW: OFFICE M 310-663-3521
  • PenthouseAdvisors@gmail.com

RED FLAG – Restaurant Alcohol “CUB” Conditional Use Permit NON-DISCLOSURE. A DRE-Violation: When Property Owners allow Real Estate Agents showing potential Tenants their Second Generation Restaurant “For Lease” within Los Angeles County Only, and the Potential Tenant expresses a desire to Dispense Alcoholic Beverages for Public Consumption, it is the Real Estate Agents responsibility to check the (CUB) Conditional Use Beverage Permit’s activity. If in fact this disclosure was avoided by the Real Estate Agents after Lease Signing, a very severe DRE “Non Disclosure Violation” has occurred.

  • CALL NOW: OFFICE M 310-663-3521
  • PenthouseAdvisors@gmail.com