Overview:

You will propose draft revisions to an apartment lease for Wendy Ellis. Try to do so in a way that maximizes the chances that Wendy will get what she wants by anticipating and assuaging any concerns by the landlord.

Instructions:

Wendy Ellis wants to lease an apartment closer to the Ellis-Elan Jewelry Design, LLC, jewelry manufacturing facility so she can help oversee production of her designs. Wendy has found a one-bedroom, one-bathroom apartment she wants to rent in Ontario, California. She also wants a month-to-month lease, all utilities included, pets allowed (she has a cat), and a free membership to the Anytime Fitness gym in the building, and she wants to paint the walls a different color before she moves in. The landlord provides Wendy with aresidential lease (Word)to review. Please review the lease and revise where needed (using tracked changes) to ensure that everything Wendy wants is incorporated into the lease. Please make any additional changes (using tracked changes) to the lease that you think will benefit Wendy.

Residential Lease:

RESIDENTIAL LEASE

THIS RESIDENTIAL LEASE ("Lease") dated as of July 1, 2019, is entered into between Ontario Property Management, LLC ("Landlord") and Wendy Ellis ("Tenant").

NOW THEREFORE, for good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

Section 1. Lease

Tenant leases from Landlord the premises located at 153 Main Street, Unit 207, Ontario, CA 91761, and consisting of 1 bedroom, 1 bath unit, 705 sq feet, air conditioning, cable ready, heating, outdoor balcony on the terms and conditions contained in this Lease (collectively, "Leased Premises").

Section 2. Term

The term of this Lease shall commence on August 1, 2019 and continue for 12 months, until July 31, 2020.

Section 3. Deposit

Tenant has delivered to Landlord a deposit in the amount of $500 in the form of cashier's check ("Initial Deposit"). If this Lease is not accepted by Landlord or Landlord's authorized agent within five (5) days, the Initial Deposit shall be refunded. Within 7 days of the execution of this Lease by Landlord, Tenant shall deliver to Landlord an additional deposit in the amount of $930 in the form of cashier's check ("Additional Deposit" and together with Initial Deposit, collectively "Deposit").

Section 4. Rent

Rent shall be $1,430 per month ("Monthly Rent"), payable in advance, on the first day of each calendar month to Landlord or Landlord's authorized agent, at the following address: Ontario Property Management, LLC, 278 Birch Road, Ontario, CA 91761, 626-778-9876 or at any other place designated by Landlord from time to time. Rent payment may be made personally on the days and office hours as follows: Monday-Friday, 8:00 am - 6:00 pm.

Rent payments may be made in cash, check, money order, or any form previously accepted.

If Tenant takes possession of the Leased Premises on a date other than the first day of a calendar month, the first rent payment shall be prorated in accordance with the then remaining number of days in the month. Tenant agrees to pay a charge of $75.00 for each dishonored check.

Section 5. Utilities

Tenant shall be responsible for the payment of all utilities and services to the Leased Premises, except water and trash, which shall be paid by Landlord.

Section 6. Use

The Leased Premises shall be used as a private dwelling with no more than 2 persons inhabiting the Leased Premises during any month, and for no other purpose, without Landlord's prior written consent. Without Landlord's prior written consent, Tenant may not use or maintain a waterbed on the Leased Premises. Tenant may not repair any automobiles or any other motor vehicles, heavy machinery, or equipment, anywhere on the Leased Premises or in or around the building of which the Leased Premises are a part, including the parking area, garage, and driveway. Tenant agrees not to keep or maintain any pets on the Leased Premises without the prior written consent of Landlord, which Landlord may withhold in Landlord's sole discretion.

Section 7. Compliance with Law

Tenant shall comply with all laws, statutes, ordinances, and requirements of all city, county, state, and federal authorities now or later in force pertaining to the use of the Leased Premises.

Section 8. Maintenance and Alterations

Except as set forth in this Lease, Tenant agrees that as of the delivery of possession the Leased Premises are in good working order and repair. Landlord may, at any time prior to Tenant's entry into possession, give Tenant a detailed inventory of furniture, fixtures, and furnishings in the Leased Premises, and Tenant shall be deemed to have possession of all the furniture, fixtures, and furnishings in good condition and repair, unless Tenant objects in writing within five (5) days after receipt of the inventory. Tenant shall, at Tenant's own expense and at all times, maintain the Leased Premises in good working order and repair, including all equipment, appliances, furniture, fixtures, and furnishings, and shall surrender the Leased Premises at termination of this Lease in as good condition as received, normal wear and tear excepted. Tenant shall be responsible for damages caused by Tenant's negligence and that of Tenant's family, invitees, and guests. Tenant shall not paint, paper, or otherwise redecorate or make alterations to the Leased Premises without the prior written consent of Landlord. Tenant shall not commit or allow any person to commit any act resulting in the destruction, defacement, damage, impairment, or removal of any part of the Leased Premises, including wall, ceiling, and floor coverings, and the furniture, fixtures, and furnishings of the Leased Premises.

Section 9. Entry

Landlord shall have the right to enter the Leased Premises for the purposes of making necessary or agreed repairs and for showing the Leased Premises to prospective tenants, purchasers, or mortgagees, provided that, except in the case of an emergency, such entry shall be made during normal business hours and upon at least twenty-four (24) hours' prior notice. In the case of an emergency or Tenant's abandonment or surrender of the Leased Premises, Landlord or Landlord's agent may enter the Leased Premises at any time, without obtaining Tenant's prior consent. Tenant agrees not to change the locks or add locks to the entrances of the Leased Premises without the prior consent of Landlord and without providing Landlord with a key to any locks.

Section 10. Indemnification.

Landlord shall not be liable for any damage or injury to Tenant or any other person, or to any property, occurring on the Leased Premises or any part of the Leased Premises or in common areas, unless the damage is the proximate result of the gross negligence or willful misconduct of Landlord, Landlord's agents, or Landlord's employees. Tenant agrees to indemnify, defend, and hold harmless Landlord for any liability, costs (including reasonable attorney's fees), or claims for personal injuries or property damage caused by the negligent, willful, or intentional act or omission to act of Tenant or Tenant's guests or invitees. Each party waives the right of subrogation against the other party.

Section 11. Delay of Possession

If delivery of possession of the Leased Premises by Landlord at the commencement of the Term is delayed, Landlord shall not be liable for any damage caused by the delay, nor shall this Lease be void or voidable, but Tenant shall not be liable for any rent until possession is delivered. Tenant may terminate this Lease if possession is not delivered within ten (10) days of the commencement of the Term.

Section 12. Assignment and Subletting

Tenant shall not assign this Lease or any interest under this Lease or sublet the Leased Premises or any portion of the Leased Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld. The Landlord's consent shall not be deemed unreasonably withheld for any reasonable objection, including but not limited to the following: (a) the proposed assignee or subtenant does not have the financial ability or stability to carry out the tenant's or optionee's obligations under this Lease, (b) the proposed assignee or subtenant would change the use of the Leased Premises, (c) the proposed assignee or subtenant has a poor credit history or poor history with previous landlords, or (d) the proposed assignee or subtenant does not satisfy the standards then used by Landlord for approving tenants or optionees in the building in which the Leased Premises are located.

Section 13. Abandoned Property

If Tenant abandons or surrenders the Leased Premises, Landlord may consider any personal property left on the Leased Premises to be abandoned and may dispose of it in any manner allowed by law. If Landlord reasonably believes that the abandoned personal property has a total resale value of less than $300, Landlord may keep the personal property for Landlord's use or otherwise dispose of it in accordance with law. All personal property on the Leased Premises is made subject to a lien in favor of Landlord for the payment of all sums due under this Lease, to the maximum extent allowed by law.

Section 14. Default

If Tenant fails to pay rent when due, or to perform any term of this Lease, after not less than three (3) days' written notice of default given in the manner required by law, Landlord, at Landlord's option, may terminate all rights of Tenant under this Lease, unless Tenant, within the time specified, cures the default.

Section 15. Remedies

If Tenant defaults, Landlord may elect to:

(a) continue the lease in effect, and enforce all Landlord's rights and remedies under this Lease, including the right to recover the rent as it becomes due, or

(b) at any time, terminate all of Tenant's rights under this Lease, and recover from Tenant all damages Landlord may incur by reason of the breach of the lease, including the cost of recovering the Leased Premises and including the worth at the time of the termination or at the time of an award if suit is instituted to enforce this provision, of the amount by which the unpaid rent for the balance of the term exceeds the amount of the rental loss that the tenant proves could be reasonably voided.

In addition to any other rights and remedies allowed by this Lease or by law, Landlord shall have the remedies as set forth in Civ. Code, 1951.2 and 1951.4.

Section 16. Security Deposit

Tenant will deposit with Landlord the sum of $1,430 as a security deposit. Landlord shall not be obligated to pay interest on the deposit. Landlord will hold the deposit for the full and timely performance by Tenant of Tenant's obligations under this Lease, including payment of rent and cleaning, maintaining, and repairing the Leased Premises after surrender. If all or any portion of Tenant's security deposit is applied by Landlord during the term of this Lease, Landlord may demand that Tenant replenish the full amount applied. Tenant's failure to replenish the amount within five (5) days after written demand will constitute a breach of this Lease. The balance of all deposits shall be refunded no later than twenty-one (21) calendar days from the date possession is delivered to Landlord or Landlord's agent, together with a statement showing any charges made against the deposits by Landlord.

Section 17. Attorney Fees

In any legal action brought by either party to enforce the terms of this Lease or relating to the Leased Premises, the prevailing party shall be entitled to all costs incurred in connection with that action, including reasonable attorney's fees.

Section 18. Waiver

No failure of Landlord to enforce any term of this Lease shall be deemed a waiver, nor shall any acceptance of a partial payment of rent be deemed a waiver of Landlord's right to the full amount of rent.

Section 19. Notices

Any notice that either party may or is required to give, may be given by mailing the notice, postage prepaid, to Tenant at the Leased Premises or to Landlord at the address shown below or at any other place designated by the parties from time to time.

Victor Gray, 153 Main Street, Unit 101, Ontario, CA 91761, 626-997-4356 is the name, address and telephone number of the person authorized to manage the Leased Premises on behalf of Landlord.

Section 20. Successors and Assigns

This Lease is binding upon and inures to the benefit of the heirs, assigns, successors, executors, and administrators of Landlord and Tenant.

Section 21. Time

Time is of the essence in this Lease.

Section 22. Holding Over

Any holding over after expiration of the Lease, with the consent of Landlord, shall be construed as a month-to-month tenancy in accordance with the terms of this Lease, as applicable. No holding over or extension of this Lease shall extend the time for the exercise of the option unless agreed upon in writing by Landlord.

Section 23. Late Charges and Default Interest

If Tenant fails to pay the Monthly Rent within five (5) days after the due date, Tenant agrees that it would be impracticable or extremely difficult to fix the actual damage to Landlord caused by that failure and therefore agrees to pay a late charge of $200 plus interest at 5% per annum commencing on the date on which the delinquent amount was due. The amounts due under this Section are in addition to and not in lieu of any other remedies of Landlord.

Section 24. Tenant's Application

Tenant acknowledges that in connection with the leasing of the Leased Premises the Tenant has provided the Landlord an application dated June 20, 2019, a copy of which is attached and incorporated as Exhibit A. Tenant agrees that any material misrepresentation or omission made by Tenant on the application constitutes a noncurable default under this Lease.

Section 25. Construction

Headings at the beginning of each section are solely for the convenience of the parties and are not a part of and shall not be used to interpret this Lease. The singular form shall include plural, and vice versa. This Lease shall not be construed as if it had been prepared by one of the parties, but rather as if both parties have prepared it. Unless otherwise indicated, all references to sections are to this Lease.

Section 26. Further Assurances

Whenever requested to do so by the other party, each party shall execute, acknowledge, and deliver any further conveyances, agreements, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and any further instruments and documents as may be necessary, expedient, or proper to complete.any conveyances, transfers, sales, and agreements contemplated by this Lease. Each party also agrees to do.any other acts and to execute, acknowledge, and deliver any documents requested to carry out the intent and purpose of this Lease.

Section 27. Third-Party Rights

Nothing in this Lease, express or implied, is intended to confer upon any person, other than the parties and their respective successors and assigns, any rights or remedies under or by reason of this Lease.

Section 28. Integration

This Lease and the attached exhibits contain the entire agreement between the parties regarding the subject matter of the Lease, and this Lease expressly supersedes all previous or contemporaneous agreements, understandings, representations, or statements between the parties regarding those matters.

Section 29. Counterparts

This Lease may be executed in one or more counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same instrument.

Section 30. Amendment

This Lease may not be amended or altered except by an instrument in writing executed by Landlord and Tenant.

Section 31. Partial Invalidity

Any provision of this Lease that is unenforceable or invalid or the inclusion of which would adversely affect the validity, legality, or enforcement of this Lease shall have no effect, but all the remaining provisions of this Lease shall remain in full force.

Section 32. Exhibits

All attached exhibits are incorporated in this Lease by reference.

Section 33. Joint and Several Liability

If Tenant is more than one person, each person shall be jointly and severally liable for the performance of Tenant's obligations under this Lease.

Section 34. Conduct of Tenant; Compliance with Rules.

(a) Tenant shall not create.a nuisance on the Leased Premises or otherwise disturb other tenants of the property. Tenant shall not play musical instruments, televisions, or stereo equipment between the hours of 10:00 p.m. and 6:00 a.m. on weekdays and 12:00 p.m. and 7:00 a.m. on weekends and holidays.

(b) Tenant shall comply with the rules and regulations for the building that are from time to time promulgated by Landlord. A copy of the current rules and regulations is attached and incorporated as Exhibit B. Tenant agrees that Landlord may from time to time modify the rules and regulations by delivering a copy of the modifications to Tenant at least 15 days prior to the effective date of the modifications.

Section 35. Governing Law

The validity, meaning, and effect of this Lease shall be determined in accordance with California law.

IN WITNESS WHEREOF, Tenant has executed this Lease as of the date first above written.

_______________________

Wendy Ellis

Landlord accepts and agrees to this Lease.

By Ontario Property Management, LLC:

______________________

Darleen Robinson

Leasing Manager