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Now Management is stating they have the right to physically remove any BBQ from a tenant's patio or balcony. Local Law Enforcement tells me that this would be trespassing and theft.
1. Yes, the local law enforcement is correct on this. The LL cannot just come in and take your personal property without your consent.
What are our rights regarding this?
2. Your rights regarding this are based on the terms of the lease agreement you signed and the Cal Fire Code. So long as you comply with both of those, you should be in good shape. The LL can make changes to the lease to exclude the BBQ grills from being allowed on the premises at the time the lease renews; but until then any act on their part to forbid them may constitute a breach of the lease or an interference with your quiet use and enjoyment of the premises.