Commercial tenant rights in California as well as any available commercial defenses the tenant may have can be found in the terms of their lease. California laws presume that any conditions that were left out of the lease agreement were not meant to apply. This means that the rights and legal defenses of commercial tenants in California are often limited.
Examples of defenses that a commercial tenant in California may be able to argue include:
- Lack of proper notice: The landlord may fail to notify the tenant by providing a 3-day notice of the eviction or does not permit them three full days to remedy the issue. If so, it may serve as a defense against the eviction;
- Improper eviction: The commercial landlord could fail to follow the proper requirements for evictions in California, or they could attempt to forcibly remove the tenant themselves. In this case, the tenant may be able to show that the landlord improperly evicted them as a defense;
- Retaliatory eviction: This defense is not as common in commercial eviction actions. However, a commercial tenant may still raise this defense if they can show that the landlord is attempting to evict them because they rightfully complained about an issue with the property;
- Landlord in breach: If the tenant can show that the landlord breached the lease agreement, then this may serve as a defense against the eviction; or
- Landlord discriminates against tenants: The federal Fair Housing Act makes it illegal to discriminate against a tenant based on race, origin, gender, disability, and other protected classes. This means that if a landlord attempts to evict a tenant for discriminatory reasons, then the tenant can raise this as a defense.
Depending on the facts and circumstances of the case, which defenses were asserted, and whether or not the tenant’s defense was successful, a commercial tenant may receive various remedies, for example:
- Legal permission to remain on the property;
- Extended time to remedy a violation;
- Monetary damages.
Additionally, certain commercial tenants rights that may help defend against an eviction include:
- Right to sublet and assign property;
- Going dark rights, or the right to cancel or get a rent reduction if the shuttered business is part of a larger shopping center or strip mall;
- Right to certain repairs, such as water supply stubs and electrical connections;
- Key money prohibitions, meaning a landlord cannot force a commercial tenant to pay extra or accept bribes in exchange for leasing coveted property; and
- Various other rights are provided by the lease.
If an individual has any questions about commercial tenant’s rights or defenses in California, they should consult with a local attorney in California.
When Can a Commercial Tenant Be Evicted?
As noted above, a commercial tenant is not afforded ample legal protections or rights when renting commercial real estate. This means that it is easier for landlords to evict commercial tenants than residential tenants.
With commercial tenants, the covenant to pay rent supersedes all of the terms in the lease. This is especially the case if a commercial tenant has entered into a commercial lease in the State of California.
Under California state law, even if a commercial tenant pays half of the rent due, the landlord is allowed to keep that payment and still legally evict the tenant. Once an eviction notice has been issued, the business only has three days to correct the violation.
In addition, a California landlord may also evict a commercial tenant for breaching a condition of the lease agreement. This may include anything from altering the property to using the property in a manner that is not allowed under the lease.
It is important to note that, unlike a residential lease, the implied warranty of habitability does not apply to a commercial lease. This is a warranty that requires the landlord to maintain suitable living conditions.
Because commercial real estate properties are not considered dwellings, a commercial landlord is not required to abide by this legal principle. This means that if a window breaks or a roof leaks and the commercial lease does not cover repairs, it will be up to the commercial tenant to fix the issue.
This also means that commercial tenants cannot withhold rent payments in order to force their landlord to make repairs. If the tenant does not, the landlord can evict them.
What Are the Steps for Tenant Eviction in California?
Generally, in California, the commercial eviction process requires commercial landlords to do the following:
- Provide notice: A landlord must provide the commercial tenant with a 3-day notice. This is a legal document that provides that the landlord will take legal action if the tenant does not remedy the lease violation or issue within three days;
- The notice must contain:
- The name of the person in violation;
- The monetary amount due, if any;
- A statement regarding the impending forfeiture of the lease if the tenant does not comply;
- Wait three days: After the landlord has served the tenant a 3-day eviction notice, the landlord must wait a full three days before they are allowed to evict them;
- File a complaint: If the tenant has not remedied the issue after three full days, the landlord can file an unlawful detainer complaint;
- Filing an unlawful detainer complaint initiates eviction proceedings; and
- Allow tenant to vacate: If the landlord does evict the tenant, the tenant will be served with a Summons;
- Once they have received the Summons, the tenant will have five days to vacate the property;
- If the tenant refuses to leave after five full days have passed, the landlord must ask a court to intervene by taking the tenant to trial.
In California, it is against the law for a landlord to forcefully evict a tenant themselves. This is why a court must be involved in the process.
What Are the Landlords Forbidden to Do?
A commercial landlord in California is prohibited from taking certain actions against a commercial tenant. For example, landlords cannot forcibly remove tenants by changing the lofts or removing their personal property from the rented space.
Instead, landlords are required to ask for legal intervention by filing an unlawful detainer complaint or going to trial.
What Happens When a Business Is Evicted?
Commercial landlords are required to give commercial tenants notice and three full days to fix an issue before they are permitted to file an unlawful detainer complaint. If the tenant fixes the issue within three days, the landlord is not permitted to continue the eviction process.
Commercial landlords are also required to provide tenants with five full days to vacate the premises. This means that, during that time, the landlord is not permitted to:
- Change the locks;
- Call law enforcement to remove the tenant;
- Put the tenant’s personal belongings on the curb.
However, once five full days have passed, a landlord is only required to keep personal property for 18 days. If the tenant has not claimed their property after 18 days, then the landlord can do what they want with the property.
It is important to note that these notice periods vary greatly from those used in residential leases. This includes a 60-day notice to vacate if the tenant has resided on the property for one year or more and a 30-day notice to vacate for homes, townhouses, and condos.
Should I Consult a Lawyer About a Commercial Tenant Eviction?
If you have any issues, questions, or concerns related to tenant’s rights and the eviction process in California, it is essential to consult with a California real estate lawyer. Commercial real estate issues can be complex, especially due to the lack of protections provided to commercial tenants.
If you are a commercial tenant, your lawyer can review your commercial lease and advise you whether there are conditions that will work in your favor. They can also represent you in court if a conflict occurs. It is also important to have a lawyer review any lease before you sign it to ensure that your rights as a commercial tenant are protected.
If you are a landlord, your attorney can help you draft leases that protect your interests. In addition, your attorney can assist you during the eviction process and represent you in court if necessary.
