Commercial Landlord-Tenant Disputes: Key Issues and Legal Remedies

Commercial real estate transactions are often complex, and disputes between landlords and tenants can arise due to various reasons. Whether it is about lease enforcement, evictions, or financial disagreements, understanding the legal framework is essential. If you are a commercial landlord or tenant facing a dispute, consulting an experienced real estate attorney like Borna can provide clarity and effective solutions.

Evictions and Lease Enforcement

Commercial landlords in California have the right to enforce lease agreements and, if necessary, evict tenants who fail to comply with their contractual obligations. Common grounds for eviction include non-payment of rent, violation of lease terms, illegal activities, and property damage. Unlike residential leases, commercial evictions do not have the same strict tenant protections, making it imperative for landlords to follow the correct legal process.

The Eviction Process:

1. Notice to Pay or Quit: If a tenant fails to pay rent, the landlord must issue a three-day notice to pay rent or vacate the premises.

2. Notice to Cure or Quit: For other lease violations, landlords typically provide a notice allowing the tenant a certain period to remedy the breach.

3. Unlawful Detainer Lawsuit: If the tenant does not comply, the landlord can file an unlawful detainer action in court.

4. Court Judgment and Eviction: If the court rules in favor of the landlord, law enforcement officials may carry out the eviction.

Lease Enforcement:

Landlords can take legal action to ensure tenants adhere to lease terms. This includes enforcing maintenance responsibilities, usage restrictions, and subletting clauses. A well-drafted lease agreement is key to preventing disputes and ensuring enforceability in court.

Rent Abatement and Tenant Default

Disagreements over rent payment and tenant financial hardships can lead to significant legal battles. Rent abatement—temporary or permanent rent reduction—is often a contentious issue between landlords and tenants.

Understanding Rent Abatement:

Rent abatement typically arises in the following scenarios:

• Property Damage or Uninhabitable Conditions: If a commercial space becomes unusable due to unforeseen circumstances such as fire, structural damage, or environmental hazards, tenants may claim rent abatement.

• Government Restrictions: During the COVID-19 pandemic, many commercial tenants sought rent relief due to government-mandated closures.

• Landlord’s Failure to Maintain the Property: If a landlord neglects repairs or fails to provide essential services, tenants may be entitled to rent reduction.

Tenant Default:

When a tenant defaults on rent, landlords have legal recourse, including:

1. Negotiating a Payment Plan: Some landlords prefer to renegotiate terms rather than pursue costly litigation.

2. Drawing on Security Deposits: Many commercial leases allow landlords to use the tenant’s security deposit to cover unpaid rent.

3. Legal Action for Damages: Landlords may file a lawsuit to recover unpaid rent and damages if the tenant vacates the premises prematurely.

4. Mitigating Damages: In California, landlords are required to make reasonable efforts to re-lease the property to minimize financial losses.

Contact Borna for Legal Assistance

If you are a commercial landlord or tenant dealing with eviction, lease enforcement, rent abatement, or tenant default issues, legal guidance is crucial. Borna, an experienced real estate attorney in California, can help protect your rights and navigate these complex disputes effectively.

Contact Information:

📍 Office Address: 2530 Wilshire Boulevard, 3rd Floor, Santa Monica, CA 90403
📞 Phone: (888) 42-BORNA

Don’t let legal disputes jeopardize your commercial investment—reach out to Borna for expert legal counsel today!