Commercial Landlord Tenant Law

Orange County Commercial Landlord Tenant Law

Many businesses run into cash flow problems that prevent them from paying their lease. The Law Offices of Tony T. Liu provides assistance in handling commercial lease disputes for both landlords and tenants should these problems arise.

Nonpayment of Rent

When a commercial tenant refuses to pay rent on time the landlord may not simply evict the tenant himself. The landlord must first give the tenant a notice to pay rent or quit. If the tenant fails to pay after three days of receiving the notice the landlord may then file a complaint in court to regain control of the property.

Sometimes a commercial tenant will argue that they failed to pay rent because the landlord refused to make repairs. However, landlords in commercial leases generally do not owe the same duties to commercial tenants. For example, there is no implied warranty of habitability that would allow a tenant to withhold rent for failure to make repairs. Unless the lease or other valid agreement allowed the tenant the defense of withholding rent, rent must be paid to the landlord.

Early Termination of Lease

As with residential leases, the dates of beginning and end of a tenancy are very important to comply with. A landlord may recover damages if the tenant ends a tenancy before the agreed upon date in the lease.

Breach of Lease Agreement

Many commercial lease or rental agreements contain certain conditions that must be complied with in order to continue the tenancy. If either the landlord or tenant breaches the terms of the agreement they can be liable for damages. However, in many commercial leases the tenant is first required to give the landlord notice of the alleged breach before suing.

Illegal Subleasing and Assignment

Commercial leases almost always require the tenant to get approval from the landlord before subleasing the premises or assigning the property to another for the remaining duration of the lease. However, when a subleasing or assignment clause is present in a contract the owner may not refuse consent for no valid reason. The burden is on the tenant to prove that the landlord acted unreasonably. California Civil Code § 1995.260. Evidence of invalid reasons could include if a tenant requests a written explanation for the denial of the request to sublet or assign and no explanation is given.

Occupancy Violations

A tenant must use the leased premises in accord with any government issued permits. For example, a business permitted to run a document services company may not run a grocery store out of the unit.

Eminent Domain Proceedings

Federal, state, and local governments retain the right to take property to use for a public purpose so long as they provide just compensation for the property. When commercially leased property is taken by the government under the right of eminent domain the rights of a business tenant to compensation depends on the existence of a valid rental agreement and the terms of the contract. If the contract is silent as to eminent domain the tenant will receive a just apportionment of the compensation from the proceedings. However, some leases restrict the amount a tenant is entitled to.

Defending ADA Compliance Lawsuits

The Americans with Disabilities Act affects commercial tenants by requiring all businesses that employ more than 15 people or that are open to the public to make their premises accessible to the disabled. The cost for adding accessibility modifications can fall on either the tenant or landlord depending on the terms of the lease.

Orange County Commercial Lease Lawyer

For experience you can count on in your commercial lease dispute call the Law Offices of Tony T. Liu. Schedule a consultation today by calling (714) 415-2007.

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