California Laws on Abandonment of Personal Property Commercial Leases

California Laws on Abandonment of Personal Property with Commercial Leases

Updated 10/29/25

It happens more often than landlords expect: a commercial tenant falls behind on rent, vacates the premises without warning, and leaves behind equipment, inventory or other personal property. For a landlord in California, the key questions become: How do I legally reclaim possession of the space? And once I’m back in, what do I do with the tenant’s leftover property so I don’t expose myself to liability?

In the commercial lease context in California, the laws have evolved to give landlords clearer tools, notably via Assembly Bill 2847 (AB 2847) and related statutes, to handle abandonment properly.

Below are the essential points to understand and apply.

Key Takeaways

  • California’s commercial abandonment statute (Civil Code § 1951.35) allows a landlord to serve a Notice of Belief of Abandonment (NOBA) after rent is unpaid for the lease’s default period (but not less than 3 days).
  • After taking possession, a landlord must serve a separate notice for abandoned personal property and then determine whether the value is under or over the threshold (greater of $2,500 or one month’s rent for commercial).
  • If the property value is below the threshold, the landlord may keep, sell or destroy it without a public auction; above the threshold triggers public sale procedures.
  • Accurate documentation (tenant default, signs of abandonment, service of notices) and adhering to the prescribed timelines are critical to avoid self-help liability or challenges to the lease termination.
  • Proactive lease language, clear communications with the tenant, and timely action are best practices to avoid a messy abandonment scenario.
California Laws on Abandonment of Personal Property with Commercial Leases

Table of Contents

Know Your Tools: Residential vs. Commercial Abandonment Notices

While the concept of abandonment exists for both residential and commercial leases, the mechanisms differ significantly in California. Under Civil Code §1951.3, residential landlords may issue a Notice of Belief of Abandonment when certain conditions are met, which includes 14 consecutive days of unpaid rent and a notice period of at least 15 days after service (or 18 days if mailed).

For commercial real property, the statute specifically added by AB 2847 (Civil Code §1951.35) applies. That statute allows service after the lease’s default period (never less than three days), and termination follows at least 15 days after service (or via overnight courier or mail). This streamlines the process for landlords of commercial units.

It is important landlords recognise: using the residential form or timing for commercial units can lead to procedural defects. Focus exclusively on the commercial statutes when dealing with non-residential premises.

When Can You Serve a Commercial NOBA?

  • a) Rent default trigger: Under Civil Code §1951.35(c), the landlord may give a NOBA only if the rent has been due and unpaid for the number of days required under the lease to declare default but in no case fewer than three days.
  • b) Reasonable belief of abandonment: The landlord must reasonably believe that the lessee has abandoned the property. Physical absence alone is not dispositive, but signs such as prolonged utilities shut-off, no business activity, removed equipment, no response to contact, uncollected mail and other indicators add up. Legal commentary warns: leaving personal property behind does not by itself defeat the belief of abandonment.
  • c) Practical pre-steps: Before serving the NOBA, the landlord should document: rent unpaid, attempts to contact the tenant, inspection of premises (photos of inactive business, signage, utilities), and confirm lease default clause. These records are critical if the tenant later contests abandonment.

Drafting and Serving the Commercial NOBA

Required content: The statute (Civil Code §1951.35) indicates the form must state:

  • The landlord believes the property is abandoned and the rent has been unpaid.
  • The date the lease will terminate (not less than 15 days after notice served).
  • The tenant must respond in writing before the termination date if they do not intend to abandon and must provide a service address for uncertified mail.

Drafting and serving a Notice of Believed Abandonment can get tricky for California Commercial Leases. Let the pros handle it for you!

Service methods & timeline

Service may be: personal delivery, overnight courier, or first-class mail. Termination cannot be earlier than 15 days after service if personally served or couriered; if mailed, the earlier versions required 18 days, though the updated statute under AB 2847 removed the extra three-day delay in some discussions.

What happens if the tenant responds?

If the tenant timely sends written notice that they do not intend to abandon (and provides a service address), the landlord cannot treat the unit as abandoned under §1951.35(b). The lease remains in place unless the landlord proceeds through an unlawful detainer action.

What if there’s no response?

If the tenant fails to respond by the termination date, the lease is deemed terminated, the landlord may retake the premises and preserve their rights for ongoing rent, damages, etc. Importantly, the landlord may then proceed to use the commercial abandonment process rather than full eviction.

After Possession: Handling Personal Property Left Behind

Once the landlord has legally retaken possession of the commercial premises, attention should turn to the tenant’s personal property that remains on site.

  • a) Notice of Right to Reclaim Abandoned Property
    Under the statutory scheme (Civil Code §§1993.03-1993.07), the landlord must serve a written notice to the former tenant (and anyone reasonably believed to have an interest). The notice must: describe the property (sufficient to identify), indicate where it may be claimed, state the deadline (15 days if personal service; 18 days if mailed), and advise that reasonable storage costs may apply.
  • b) Valuation threshold / Disposal rules
    As of January 1, 2019, with AB 2173 in effect, the threshold under which the landlord may keep, sell, or destroy the property without a public auction is the greater of $2,500 or one month’s rent for the leased premises. If the landlord believes the value of the abandoned property exceeds that threshold, a public sale by competitive bidding is required. For example: if monthly rent was $10,000 and equipment left behind is valued at $10,000, the threshold is $10,000, so only above that would auction be required.
  • c) Auction / disposal steps
    If auction is required: publish notice of sale, hold competitive bidding, deduct storage/sale costs, remit surplus to county/unclaimed-property fund. If below threshold: landlord may dispose of, sell, or keep, following the notice period. Accurate inventory, value documentation, storage expense tracking are best practices.
  • d) Special case: motor vehicles
    If the abandoned property is a vehicle, the landlord must abide by the requirements of the California Vehicle Code (e.g., licensed towing company involvement) rather than just the Civil Code personal property rules

Common Pitfalls & How California Landlords Can Avoid Them

  • Using incorrect notice form or timing: Applying the residential abandonment procedure (14 days unpaid rent, 15/18 day notice) to a commercial lease will likely invalidate the process.
  • Attempting self-help with locks, removal of tenant property without proper notice: Even if the tenant has clearly vacated, the landlord must still comply with the NOBA notice requirements or risk liability for wrongful eviction.
  • Mis-value of abandoned personal property: Assuming property is “low-value” without documentation may expose the landlord if challenged; failure to hold required public sale when value exceeds statute can lead to liability.
  • Poor documentation of “reasonable belief” of abandonment: Landlords must treat abandonment as a conclusion drawn from facts, not merely an assumption. A checklist of indicators, photos, logs will support credibility.
  • Failing to update lease and notice templates: Because AB 2847 and AB 2173 changed key thresholds and timelines as of Jan 1 2019, outdated forms may no longer comply.

Decision Tree for Landlords (Commercial Units Only)

  1. Step 1: Tenant fails to pay rent and shows signs of abandonment (no operations, utilities off, equipment missing, no responses).
  2. Step 2: Confirm lease default clause (number of days before default). Ensure rent is past that period (or at least 3 days unpaid per statute).
  3. Step 3: Serve NOBA (per §1951.35) with termination date not less than 15 days after service.
  4. Step 4: If the tenant does not respond in writing, treat the lease as terminated on that date. Re-enter premises and secure.
  5. Step 5: Serve Notice of Right to Reclaim Abandoned Property (per §§1993.x) within the appropriate timeframe.
  6. Step 6: Evaluate value of abandoned property:
    • If value ≤ (greater of $2,500 or one month’s rent) → may dispose/retain.
    • If value > threshold → hold public sale, publish notice, deduct costs, remit surplus.
  7. Step 7: Maintain records: service proofs, inventory, valuation, storage cost, sale records, remittance.

Documentation Checklist (Download-Friendly List)

  • Lease clause showing default period and conditions.
  • Evidence of unpaid rent beyond default period (dated statements, ledger).
  • Photos, inspection logs, business non-activity indicators (closed sign, utilities off, inventory moved).
  • Copy of served NOBA with termination date; proof of service (personal, overnight courier, or mail).
  • Copy of tenant’s written response (if any) stating intent not to abandon.
  • Reentry documentation (date of possession regained, locks changed, keys secured).
  • Notice of Right to Reclaim Abandoned Property: copy served, proof of service.
  • Inventory list of property left behind (date, description, photos, estimate of value).
  • Storage cost invoices (if applicable); notice of sale publication (if auction required).
  • Auction sale ledger or disposal note; remittance receipt to county/unclaimed-property fund (if applicable).

Frequently Asked Questions for California Landlords

Can I change the locks immediately after serving the NOBA?
No. The lease termination date under the NOBA must expire first (at least 15 days after service). Premature lock‐out may be treated as unlawful self-help.

Do the 15/18-day rules apply to both the NOBA and the Notice to Reclaim?
Yes – the Reclaim notice usually gives 15 days (personal service) or 18 days (mail) for the former tenant to respond and reclaim property.

What if I’m unsure the tenant abandoned the premises?
If the evidence is weak or the tenant has communicated, it may be safer to proceed with an unlawful detainer rather than risk an improper abandonment proceeding.

Could I rely solely on the lease default clause (e.g., 5-day late) and serve the NOBA that same day?
Only if the lease clearly triggers default at that earlier period, and you have documented reasonable belief of abandonment. The statute mandates at least 3 days unpaid in no case fewer.

What happens to leftover tenant property worth $1,000 when monthly rent is $8,000?
The threshold is the greater of $2,500 or one month’s rent ($8,000), so the $8,000 threshold applies. Since $1,000 < $8,000, the landlord may dispose/retain after notice.

Conclusion: Regain Control the Right Way

For California landlords overseeing commercial leases, abandonment of both the premises and the tenant’s personal property presents serious operational and legal challenges. By using the statutory tools under Civil Code §§1951.35 and 1993.x (as amended by AB 2847 and AB 2173), you can regain possession and manage leftover property with far greater clarity and reduced risk.

That said, the key to success lies in documentation, timely action, correct service procedures, and understanding the thresholds. With proper preparation, you safeguard your rights and avoid costly missteps.

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