Commercial Real Estate Owners in California Need to Know These Laws

As a California landlord, you want tenants who pay their rent on time. You also want them to abide by their lease agreement and take care of your property properly. As a residential landlord, what you can expect of your renters is different than as a commercial landlord according to real estate laws in California. With commercial real estate, you may have tenants who enter into long-term lease agreements. You may have tenants whose businesses close and want to get out their lease. Simply put, the laws for commercial real estate for a landlord and tenant are a little different than for the residential renter. Read on to learn about three California real estate laws you should be aware of for commercial real estate.

California Laws That Commercial Real Estate Owners Need to Know

1. Subleasing the Property

Perhaps a business would like to leave the property and their lease is not up yet. Many will attempt to rerent or sublease another tenant. Under California law, the tenant must get the permission of the landlord before subletting or renting the space to a different renter.

This law, however, does hold the landlord accountable. They can’t just automatically refuse because they don’t want to sublet the property. The landlord is responsible for showing why they are refusing if they wish to do so. As the landlord, you are obligated to show why you’re refusing consent and it must be for a valid reason.

2. Expect Rent in Full

As a landlord, one of the biggest concerns you face is making sure you get paid the rent money each month. As a residential landlord, there are a whole series of steps and laws you must follow before you can evict a tenant that has not paid their rent.

As a commercial landlord though, rent is king. You should expect the rent is paid in full each month. A landlord can use the 3-day notice to get rent paid and then quickly act on eviction if the rent is not paid in full.

Even if a tenant pays you partial rent, you can accept it. But if their rent is not paid in full, you can choose to change the traditional eviction procedures in a lease. You want it spelled out in the commercial lease agreement your expectations and plans for eviction if rent is not paid in full.

3. No Rent Control Applies in Commercial Property Agreements

It’s no secret that rent costs are astronomical in many parts of California. Some cities in California have enacted rent control laws to protect and help residential tenants.

As a landlord, you should know those rent control laws do not apply to commercial property. If one business has the advantage of a rent control space, they fundamentally have an advantage over their competitors who do not have a rent-controlled space. For this reason, California law excludes commercial properties where rent control is concerned.

Know Your Commercial Real Estate Laws

As a commercial real estate landlord, you want to know your rights and also the laws where your tenants are concerned. Creating a lease agreement that works for both the renter and you, as the landlord, means the property can stay rented and you will be a successful landlord.

If you need help with your commercial real estate or have questions related to being a landlord of commercial real estate, we can help. We specialize in all areas of real estate law and can help you with your law-related needs. Contact us today to set up an appointment.

Do you have other Business Law questions?

Call or Email Us Today to Schedule a Consultation

NEARLY DONE!We just need to know where to send the Business Law information

NEARLY DONE!
We just need to know where to send the Business Law information

Just enter your name and email address and click the button.

You have Successfully Subscribed!

NEARLY DONE!We just need to know where to send the Construction Law information

NEARLY DONE!
We just need to know where to send the Construction Law information

Just enter your name and email address and click the button.

You have Successfully Subscribed!

NEARLY DONE!We just need to know where to send theReal Estate Law information

NEARLY DONE!
We just need to know where to send the
Real Estate Law information

Just enter your name and email address and click the button.

You have Successfully Subscribed!