New Lease Protections for Small Businesses in California: SB 1103
If you lease commercial property to small businesses or nonprofits in California, there's a new law you should know about.
Senate Bill 1103, also known as the Commercial Tenant Protection Act, was signed into law on September 30, 2024, and took effect on January 1, 2025. This law provides new protections for certain small business tenants, referred to as "qualified commercial tenants.
Who is a Qualified Commercial Tenant?
Under SB 1103, a qualified commercial tenant is defined as:
A microenterprise with 5 or fewer employees
A restaurant with fewer than 10 employees
A nonprofit organization with fewer than 20 employees
To receive these protections, tenants must provide landlords with a written notice and self-attestation of their status before or upon execution of the lease and annually thereafter. For month-to-month tenancies, this notice should be provided at some point during the previous 12 months.Public Counsel+6Perkins Coie+6California Lawyers Association+6
What Protections Does SB 1103 Provide?
SB 1103 extends several rights to qualified commercial tenants:
Rent Increase Notices: Landlords must provide a 90-day notice for rent increases exceeding 10%.
Lease Termination Notices: A 60-day notice is required to terminate the lease if the tenant has occupied the property for more than one year.
Lease Translations: If lease negotiations are conducted in certain languages (including Spanish, Chinese, Tagalog, Vietnamese, or Korean), landlords must provide a translated copy of the lease in that language.
These measures aim to protect small businesses and nonprofits from sudden rent hikes and unexpected lease terminations, ensuring they have the necessary information to make informed decisions.
Questions about how SB 1103 applies to your property or tenants? I’m always here to help.
Contact me HERE or give me a call at (424)212-3859.
Best regards,
Lindsay Woolf | CA DRE #02236711
DOMO Real Estate | CA DRE #01290500
Disclaimer: The information in this blog post is for general informational purposes only and does not constitute legal advice. Real estate transactions can be complex and subject to local regulations.
