On behalf of Thaler Law
A tenant that doesn’t pay rent or ignores terms of the lease can be very frustrating for a landlord. Not only might it mean a significant blow to their income, but it can even affect the overall health of the property.
There is a way to evict a commercial tenant, but it requires landlords to follow a clearly defined legal process, with specific dos and don’ts.
California Commercial Tenant Eviction Process: Late Rent & Lease Terminations
If you are dealing with a commercial tenant not paying rent, you must follow the strict legal process. The California commercial tenant eviction process late rent lease guidelines dictate that a landlord cannot simply take matters into their own hands. Evicting a commercial tenant in California requires serving a proper commercial eviction notice, such as a 3-Day Notice to Pay Rent or Quit.
If the tenant fails to pay or leave, the landlord must file an Unlawful Detainer lawsuit. Under new California laws, tenants now have 10 court days (up from 5 days) to file a response. Only after winning the lawsuit and getting a Writ of Possession can a sheriff perform a legal commercial lockout.
What A Landlord Can’t Do?
California law also makes it clear the landlord can not do certain things when trying to evict a tenant. They may not:
- Prevent the tenant from accessing the site, including by changing locks or the use of a bootlock
- Remove outside doors and windows
- Cut off utilities, such as water or electricity
- Remove any of the tenant’s personal property
In addition, a landlord does not handle the physical process of evicting someone. Only a sheriff’s office with a judgment for possession can do so.
A landlord that violates these laws, even unintentionally, may end up being held liable and potentially ordered to pay damages to the tenant. It’s why many hire an attorney to help ensure they are following the law and moving things along as quickly as possible. The faster a landlord can get through the eviction process, the faster they can fill that space and restore their income.
Can a Commercial Landlord Lock You Out in California?
One of the most common questions from business owners is, “Can a commercial landlord lock you out?” The short answer is No. A landlord cannot legally change the locks, shut off your utilities, or remove your property without a court order. Doing so is considered an illegal “self-help” eviction. If a landlord cuts off utilities to force a tenant out, the tenant may claim “constructive eviction” and sue the landlord for damages and lost business income.
Furthermore, if a tenant files for bankruptcy, an automatic stay is placed on the property. This means the landlord must legally pause the business eviction process until they get permission from the bankruptcy court.
California Commercial Tenant Rights
If you are wondering what happen when you can’t pay commercial rent in California, you should know that California commercial tenant rights have expanded significantly. Under the new Commercial Tenant Protection Act (SB 1103), “Qualified Commercial Tenants” (microenterprises, restaurants with under 10 employees, and small nonprofits) have strict new protections against sudden displacement.
- Extended Notice Periods: If a landlord wants to terminate a month-to-month lease, they can no longer just give 30 days’ notice if the tenant has been there long-term. Qualified tenants must receive 60 days’ notice (if there over a year) or 90 days’ notice (if there for 3 or more years).
- Security Deposit Caps: Landlords can now only ask for a maximum of one month’s rent for a security deposit from a qualified commercial tenant.
- Transparent Fees: Landlords are legally prohibited from charging hidden common area maintenance (CAM) fees. All property operating charges must come with clear, itemized documentation showing the exact proportionate cost.
Frequently Asked Questions (FAQs)
How To Stop A Commercial Eviction In California?
To stop a commercial eviction, a tenant must either cure the lease violation (such as paying the past due rent within the 3-day notice period), successfully negotiate a payment plan with the landlord, or win the Unlawful Detainer lawsuit in court. Filing for bankruptcy can also temporarily pause an eviction.
What Are Commercial Tenant Eviction Rights in California?
Commercial tenant eviction rights include the right to receive proper legal notice before an eviction suit is filed, the right to 10 court days to respond to an Unlawful Detainer lawsuit, and the right to be free from illegal self-help lockouts or utility shutoffs. Qualified small businesses also have the right to translated leases and transparent operating fees.
How To Evict A Commercial Tenant In California?
To legally evict a commercial tenant in California, a landlord must:
- Serve the appropriate 3-Day or 60-Day commercial eviction notice.
- File an Unlawful Detainer complaint in court if the tenant does not comply.
- Wait for the tenant’s 10-day response period.
- Win the court judgment.
- Have the local sheriff execute the final eviction and lockout.
