Arrangement Choice

We help you choose an arrangement for holding your property. An arrangement may involve ownership, rental, or a mix of both. Arrangements include:

  • master lease and subleases,

  • tenancies in common,

  • limited liability companies,

  • housing cooperatives,

  • condominiums, and

  • mutual benefit corporations.

A mutual benefit corporation might be the best option financially and governance-wise, but it results in Group Housing Unit versus Dwelling Unit classification in most California municipalities. A particular type of tenancy in common avoids classification as a subdivision and therefore avoids restrictions of local condominium conversion ordinances. If you’re trying to sell an ADU, you might have to do it through a condominium.

Also, what are the more unique options like a Frolic cooperative or a Permanent Real Estate Cooperative. Do these avoid Subdvision Map Act classification?

And which of these models allow homeowners to pre-subscribe for their units and make projects more financially viable from the beginning?

For rental coliving projects, how do you structure your master tenancy in relationship to membership? How do you maintain status as a master tenant versus a commercial operator?

Also, if you do rent to someone, can you do it in a way that allows them to build equity? Is there an option that provides renters with equity? How can that be accomplisehd?