Special Restrictions on Commercial Leases in California

In general, commercial leases contain far fewer legal protections than residential leases. The individual agreement between the landlord and tenant typically controls the operative terms of the lease. The parties are essentially free to contract as they wish and are not subject to extensive state laws outlining the obligations of the parties, which are generally intended to protect the rights of the lessee. While standard commercial lease agreements can be used, the parties should be sure that these “form” agreements are adequately amended or in some cases, completely replaced, to genuinely reflect the agreement between the parties. Below is an overview of some of the features of commercial leases in California.

Maintenance. A landlord has no duty to maintain or repair commercial property. Commercial tenants, in many cases, may be responsible for upgrading facilities to be compliant with federal and local laws, and for replacing defunct internal systems. Prior to signing the lease, the tenant may request that the landlord bear responsibility for such repairs. These allocations of costs must be expressly specified in the lease; the landlord is not legally required to maintain the premises in a particular condition or to maintain its infrastructure otherwise.

Eviction. Commercial tenants may be evicted in California with the provision of three days notice by the landlord. A commercial landlord can pursue eviction for nonpayment of rent or other material defaults related to the lease. Like residential landlords, commercial lessors are not permitted to resort to extraneous measures to evict a tenant, such as changing the locks on doors or removing the personal belongings of the tenant from the premises. However, a commercial landlord may prevent the tenant from accessing his property once an unlawful detainer has been served and the tenant has failed to vacate the property after five days.

Subleasing. A commercial lease often requires that the tenant obtain the approval of the landlord to sublease the premises to a third party or to allow a third party to assume the lease for the duration of the rental period. The law requires that the landlord provide a valid justification to withhold consent to such a request. However, the tenant bears the burden of proof to demonstrate that the landlord is not acting reasonably in his refusal.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.

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Special Restrictions on Commercial Leases in California

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