California commercial real estate has changed dramatically since the COVID-19 pandemic began. There have been many laws and moratoriums enacted by the federal and state governments that affect landlords.
It can be a confusing time and you hear different opinions on the latest changes that have been enacted. Here are some of the key changes that affect the property management California landscape.
California Commercial Real Estate Evictions
The tenant rights California offers commercial real estate tenants have increased during this crisis. Gov. Newsom’s executive order allows local governments to pass or extend eviction moratoriums on commercial property.
This has been a severe increase to the landlord rules California has. Gov. Newsom’s order is set to expire on September 30, 2021, and it may not be extended but will still apply for the moratorium dates.
You will want to check the commercial real estate requirements California local governments have enacted. For instance, the city of Sacramento has a moratorium, but the county doesn’t.
To meet the requirements of the moratorium, tenants have paperwork to fill out. As the landlord, you must serve the tenants the proper notices and forms for them to turn in.
If they fail to fill the forms out and turn them in, the moratorium does not apply to them and you can proceed with the eviction process.
Multi-Use Commercial Real Estate
If your building has both residential and commercial tenants, the residential tenants will be fully covered by the Relief Act. This applies whether the local government has a moratorium on commercial or not.
You will have to abide by all the rules of the moratorium for the residential tenants in your building. Remember that they also have to fill out the appropriate paperwork and declarations to be covered by the moratorium.
You will still have to show cause for eviction and it will be even more necessary during the moratorium.
The Details Matter in the Moratorium
You want to understand all of the details in the moratorium for your commercial properties and your residential properties. The commercial real estate license California offers will have different rules across the state.
The majority of the residential rules are based on the CA Relief Act. The paperwork rules for commercial properties could be the same. The same thing could apply to the 25% payment rule.
Residential tenants must pay 25% of the rent payments. This rule could apply to commercial tenants as well depending on how the local government drafted the moratorium.
A Guide to Help You Navigate
California commercial real estate could be a tough journey even before the COVID-19 pandemic. Now, it has gotten more complicated with the different rules and moratoriums.
You need a guide to help you manage the rough terrain that commercial real estate has become. We are a creative and cost-effective law firm dedicated to solving your problems and protecting your rights.
Contact us for a complimentary phone consultation to let us help you navigate during these trying times.
