The first step in terminating a Commercial Tenancy is to review the written lease which will answer many questions that the landlord may have. The lease will instruct the landlord, under the Default/Remedy provision how much notice must be given before a landlord can terminate the tenancy. That provision can expand or decrease that amount of time the notice must provide and will supersede the statutory requirements if agreed to and signed by all parties.
The lease will also define various terms such as what constitutes rent, use of the commercial premises and what constitutes a default under the terms of the lease. Most Commercial Lease(s) are for a fixed term with options to extend. The lease will define the basic rent, Common Area Charges (CAM) and other fees and costs that are passed through to the tenant.
Before a California landlord can decide how to proceed with the Unlawful Detainer case the landlord must review the lease and a current rent ledger from of the tenant. The lease will also define how the Notice must be served. In most commercial leases there is a section for giving notice of default. That section must be followed as well as following the provisions of Code of Civil Procedure Section 1162.
All notices to terminate a commercial tenancy in California must follow the rules set forth in the lease, the Code of Civil Procedure Section 1162 and must be sent by certified mail return receipt requested.
Notice To Terminate For Non-Payment of Rent
The first and most common reason to evict a commercial tenant is for non-payment of rent. There are two major differences between a residential notice for non-payment of rent and a commercial notice for non-payment of rent.
The first major difference is that a residential tenancy 3-Day Notice to Pay Rent or Vacate is that residential notice must be exact as to how much rent is owed and how much rent is needed to cure the default prior to the expiration of the Notice.
Not so in a Commercial Notice to Pay Rent or Quit that can be a reasonable estimate of what is owed and what must be paid to cure the default.
The Second major difference between a Residential 3-Day Notice to Pay Rent or Quit and a Commercial Notice is that a Residential Notice must not include late charges and other fees. However, in a Commercial Lease that defines rent as all monetary charges owed by the tenant the 3-Day Notice can and should include all money owed to the landlord including Rent, Common Area Charges (CAM Charges), Late Fees, and all other charges billed to the tenant under the lease. The landlord should include all these charges into the rent ledger and billing statement to the tenant.
Before preparing the Notice, the landlord’s attorney needs to review the lease and rent ledger to determine if the landlord has included all the money the landlord is owed under the lease and prepare the notice accordingly.
The third major difference between commercial and residential notices to pay rent or quit is that a commercial landlord can accept a partial rent payment after service of the notice and still proceed with the eviction case.
However, a statement stating that the landlord can accept a partial rent payment and still proceed with the eviction case MUST be included on the Notice and if the landlord does accept a partial rent payment the landlord must send a correspondence to the tenant advising the tenant that unless the tenant pays the demand in full the eviction case will continue.
The Commercial Notice must include a statement of how the tenant can cure the default by where, when, how and to whom the tenant can pay the demand to cure the default.
The fourth major difference is that a Commercial 3-Day Notice to Pay Rent or Quit must be mailed to the tenant and/or the agent for service of the tenant if the tenant is a Corporation or a Limited Liability Company by certified mail return receipt requested – along with following the provisions of the lease and Code of Civil Procedure Section 1162.
The Notice To Perform Covenant or Quit
There are number provisions in a commercial lease that provide fodder for a Notice to Perform Covenant or Quit.
The use provision of the lease defines how the tenant can legally use the premises. This is very important in this new era of Marijuana Cultivation and Dispensary. If the tenant’s use of the rental property differs from the stated use in the lease a 3-Day Notice to Perform Covenant or Quit can be used to terminate the tenancy.
Most commercial leases also require that the tenant have insurance and business permits to operate the commercial business. If the tenant cannot show proof of insurance and a business permit the tenancy can be terminated by the service of a Notice to Perform Covenant or Quit.
Just as in a residential tenancy this notice must state how the tenant is violating the lease with a specific reference to the provision of the lease that is being violated and how the tenant can cure this violation.
The Nuisance Notice
A 3-Day Notice to Quit for using the commercial rental property for an illegal purpose or any other use that constitutes a nuisance, which is defined as any use not in conformity with the provisions of the lease that causes disturbances or causes concern for the safety and well being of the other tenants and surrounding community.
This type of notice can be used in a situation where the commercial property is being used for the cultivation, sales and distribution of marijuana whether for medical or recreational use where such use is not legal in the City or County where the rental unit is located or where the business has not secured the proper local and California State permits.
At Fast Eviction Service, help on any of the issues discussed in this article is simply a click or phone call away. Email email@example.com or call our office at (800) 686-8686 to discuss your questions for a free evaluation of your case.
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California Eviction Notices For Commercial Tenancies
There are a wide variety of eviction notices that can be used in California when a landlord needs to terminate a Commercial Tenancy. The first step is to review the written lease which will answer many questions that the landlord may have. The lease will instruct the landlord, under the Default/Remedy provision how much notice must be given before a landlord can terminate the tenancy. Read More...