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State-specific law relating to rent capping and eviction notices

On Behalf of | Aug 18, 2016 | Commercial Real Estate |

Whenever one is preparing to lease a commercial property, it is wise to have a working knowledge of the laws that are specific to the state in which the lease is occurring, which may vary from leasing laws of other states. Leasing commercial property in the state of California is subject to some state-specific laws pertaining to the areas of rent control provisions and eviction notices. As a prospective commercial tenant, familiarity with these laws can help you identify and avoid issues with your lease agreement before they arise.

California has determined that commercial property is not an appropriate venue for rent control or rent-capping practices, and has in fact prohibited it in relation to public entities offering rent-controlled commercial properties. The relevant statutes state that rent-controlling commercial properties could discourage competitive business environments or grant one business unfair advantages over others. However, the law does allow for landlords of commercial properties to voluntarily offer rent-controlled spaces to public agencies.

Eviction notices are also subject to specific guidelines under California law. Commercial tenants are often legitimately evicted for common breaches of contract like the failure to pay rent. Less common breaches can also result in eviction, such as subletting a space in conflict with the lease agreement, or making unauthorized changes to a leased space. Under California law, the lessee has only three days to correct the breach of the agreement upon the receipt of the eviction notice in order to avoid eviction. In the event that the eviction is on the basis of unpaid rent, the landlord is granted the right to leave a written estimate of the overdue rent on the notice itself, provided that it is stated on the notice that the figure is an estimate.

While these are not the only issues in commercial leases that are governed specifically by California state law, they are helpful to know for anyone considering a commercial lease. If you are considering a commercial lease, or searching for legally legitimate avenues for exiting an existing lease, the assistance of a qualified commercial property attorney can help ensure your rights are protected throughout the process.

Source:, “California Laws Regarding Tenants in a Commercial Building,” Anna Assad, accessed Aug. 18, 2016