Strategy in Action

Tool: Eviction Protections & Lease Protections

California’s 2024 Commercial Tenant Protection Act (SB 1103) increases commercial tenant protections statewide and is the first and only such state-wide law in the country. The law applies to businesses that are a microenterprise (five or fewer employees), a restaurant with 10 or fewer employees, or a nonprofit with 20 or fewer employees. Among other protections, the law requires landlords to give qualified commercial tenants 60 days notice before terminating a lease, or 30 days notice for a month-to-month lease. This notice period gives tenants time to find new space, negotiate with the landlord, or pay unpaid rent. The law also requires landlords to notify tenants 30 to 90 days before a rent increase, depending on the percentage of increase, so that tenants can budget for increased rent or find a new space. In addition, SB 1103 requires landlords to translate commercial leases or other tenancy agreements to a tenant’s primary language, at no cost to the tenant. Previously, tenants who did not speak or read English as their primary language had to hire a translator or lawyer to understand the lease, which many small businesses can not afford. The law also prevents landlords from charging a tenant for the cost of operating and maintaining a shared building, unless the costs are evenly divided among tenants, the tenant is aware of the costs before entering the lease, and the tenant is provided documentation of the expense amounts. This makes the fees often associated with commercial leases more clear so that small business owners are not burdened by hidden or unfair costs.