"Of course the apartment includes utilities…
we just don’t pay for them.” "Of course the apartment includes utilities… we just don’t pay for them.” "Of course the apartment includes utilities… we just don’t pay for them.”
"Of course the apartment includes utilities… we just don’t pay for them.”
IF YOU’RE USING OTHER PEOPLE’S MONEY (OPM), THE STAKES ARE HIGHER When you’re raising capital from others, whether formally through a syndication or informally through a JV, you take on more than just financial responsibility. You take on legal and ethical responsibility to protect that money. That means your lease isn’t just a management tool. It’s a risk mitigation strategy. It affects cash flow, liability, investor trust, and your ability to deliver. And even if you outsource property management, you are still accountable. Passive investors should care, too. Don’t assume your sponsor or operator has it handled. Ask to see the lease template. Ask who wrote it. Ask what protections are built in. Because when things go wrong, legal documents are the first line of defense—and the first thing everyone reviews in hindsight. FINAL THOUGHT: A $20 CLAUSE CAN PROTECT A $2M DEAL You’ve gone through the work of raising capital, structuring your deal, and building a business on trust. Don’t let all that crumble because of a vague clause in a lease. Strong leases aren’t exciting, but they’re essential. And when you’re playing with OPM, they’re not optional.
BETHANY LAFLAM Securities Attorney | Real Estate Investor | Best Selling Author Bethanylaflam.com
Bethany is a securities attorney and real estate investor who helps multifamily operators protect their deals, their capital, and their peace of mind. As a partner at Premier Law Group and founder of the Conscious Capital Collective, she’s advised on thousands of real estate transactions and teaches entrepreneurs how to scale smart using Other People’s Everything (OPE).
Disclaimer: Lease provisions and landlord-tenant regulations vary widely by state and municipality. The information provided in this article is for general educational and informational purposes only and does not constitute legal advice. Operators and property owners should consult a qualified attorney licensed in the state where the property is located to ensure compliance with all applicable laws.
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