Attorneys who handle everything relating to commercial tenancies and evictions
Generally speaking, tenants who are renting a commercial space are considered in the eyes of the law as being a more savvy group than residential tenants. This means that tenants using space for a commercial purpose are given comparatively fewer protections than their counterparts renting a living space.
There was, however, a movement to bridge this gap with the enactment of the Commercial Tenant Protection Act (Senate Bill 1103), a bill that introduces significant protections for certain small businesses and nonprofit commercial tenants that were traditionally reserved for residential tenants.
By attesting that they are a “Qualified Commercial Tenant,” businesses now can enjoy a bill of rights of their own that mirrors some residential tenant protections. Notably, tenants must inform their commercial landlords of their qualified status to realize the benefits of this new law that went into effect in 2025.
Some highlights of the new law designed to add a level of fairness and transparency in commercial leasing practices:
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Notice requirements of rent increases before the effective date of the rent increase.
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Translation of the commercial lease into a native tongue when there is a language barrier.
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Advance notice requirements for rent increases.
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Right to recover building operating costs, meaning the landlord cannot charge a Qualified Commercial Tenant a fee to recover building operating costs unless certain conditions are met.
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Notice requirements to terminate month-to-month tenancies.
When endeavoring to evict a commercial tenant, consider the downside of a vacancy.
The Bay Area is tragically littered with shuttered, boarded-up businesses that have closed their doors. Owners do not know when these vacancies will be filled and face the real possibility that the commercial property will go unrented and, worse yet, be subject to a vacancy tax.
It may be prudent to negotiate a deal with the tenant to keep the enterprise implanted as they work through their hardships so that the landlord can continue receiving cash flow. The alternative may be having an empty storefront that languishes on the market for months on end without any rental income. Our firm is well equipped to handle these negotiations.
Leases are everything.
At the inception of the rental relationship, landlords of commercial properties have more latitude in negotiating leases; these agreements are less regulated than residential ones. If and when a dispute arises in a dispute, the written agreement will carry a lot of weight.
Bornstein Law can assist in getting the terms commercial landlords want and need to protect and optimize their real estate investments.
Is the tenant a big fish or a little fish?
Larger tenants typically have more leverage and legal muscle to negotiate lease terms and respond to disputes. Contrast a chain store with a small, mom-and-pop operator.
On the one hand, large commercial tenants have an army of attorneys to litigate disputes, but they also have the resources to pay off rent debt when there are discussions about issues in the rental relationship. These larger enterprises also tend to have certain uniform standards in place that tend to avoid problems to begin with.
A smaller commercial tenant is more prone to problems. Take, for example, a mixed-use property with a restaurant below and residential spaces above. There may be a risk of a grease fire that engulfs nearby rental units, there may be code violations relating to the disposal of garbage, or neighboring residents may complain of noise.
These small businesses are more inclined to violate lease terms and incur the ire of local regulators, more so than bigger businesses that are household names. Smaller operators are also willing to put up a strenuous fight to stave off eviction because their livelihood depends on their business staying afloat.
Many other issues abound.
While our firm is most renowned for managing residential rental relationships and responding to dysfunction that could result, we are not a one-trick pony. Increasingly, we venture into issues that can arise with commercial tenants.
There are many similarities between renting out living quarters to tenants and renting out commercial space, but there are several differences best journeyed with proper counsel. Despite the nuances in these two creatures of residential rental units and spaces rented out for commercial use, the overarching goal of protecting the interests of clients remains the same.
Owners of commercial properties can get peace of mind knowing their financial interests are protected and all contingencies are anticipated.
From the cradle to the grave, Bornstein Law can oversee commercial tenancies, beginning with the negotiation of lease terms. When there is friction in the relationship, we can diplomatically enforce the terms agreed upon.
Ideally, we can glue the rental relationship together, but if all else fails, commercial landlords can commence an eviction with proper counsel that follows all steps to the letter and adheres to strict court filing rules to avoid errors that can lead to delays or dismissal.
Topics of interest
Owner/Relative move-in evictions ›
Substantial rehabilitation evictions ›
Defending against tenant lawsuits ›
Reviewing & drafting lease agreements ›