accepting rent

What is the name of your state (only U.S. law)? Oregon

I have a quick business question. Is it legal for a business owner to accept rent on a salon station but not pay the leasing company and thus being evicted? We have been paying rent on time, all the time and received a call from the business owner lastnight the landlords were locking the building first thing this morning. Is there any recourse to past months rents paid but not applied to lease agreement between salon owner and leasing company?

shainamarie said:

What is the name of your state (only U.S. law)? Oregon

I have a quick business question. Is it legal for a business owner to accept rent on a salon station but not pay the leasing company and thus being evicted?

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**A: we need more details.

I edited the initial question. Still need more info?

Thanks

shainamarie said:

What is the name of your state (only U.S. law)? Oregon

I have a quick business question. Is it legal for a business owner to accept rent on a salon station but not pay the leasing company and thus being evicted? We have been paying rent on time, all the time and received a call from the business owner lastnight the landlords were locking the building first thing this morning. Is there any recourse to past months rents paid but not applied to lease agreement between salon owner and leasing company?

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I'm sure that you hear about residential tenants who end up losing their homes because their LLs failed to use the rent they received to pay their mortgages. Same thing there.

As long as the business owner was authorized to sublet the salon stations, he could charge rent for them. Whether or not he actually paid his OWN property rent to the leasing company is between he and the leasing company. It just so happens that the salon station subtenants he rented to ended up screwed if he chose not to pay his own rent.

Did you have a long-term lease or were you on a month-to-month tenancy for the salon station? If there was still time left on the tenancy for the subtenant, they MIGHT be able to sue their LL (the business owner) for a breach of their agreement. However, if the business owner wasn't paying his own rent obligation, chances are that his own financial situation isn't that great, and there won't really be any money available to collect on a judgment against them.

Is there any recourse to past months rents paid but not applied to lease agreement between salon owner and leasing company?

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You got what you paid for didn't you? If you paid any rent for time you will not be allowed to use the station you are owed a refund but other than that, you are owed nothing