Are you a small business owner in California? SB 1103, also known as the Commercial Tenant Protection Act, is set to take effect on January 1, 2025, providing critical safeguards for small business tenants. From rent increase limits to language accessibility, this legislation aims to create a fairer leasing environment.
What is a Qualified Commercial Tenant Under SB 1103?
To benefit from SB 1103 tenant protections, your business must fall into one of these categories:
- Microenterprise: A sole proprietorship or business with five or fewer employees.
- Small Restaurants: Businesses with fewer than 10 employees.
- Nonprofits: Organizations with fewer than 20 employees.
Eligible tenants need to submit a written notice and a self-attestation confirming their qualifications to their landlord.
Top Tenant Protections in SB 1103
- Rent Increase Notifications:
- Over 10% Increase: Your landlord must provide at least 90 days’ notice.
- Under 10% Increase: A minimum of 30 days’ notice is required.
- Lease Termination Safeguards:
- For tenants occupying the property for over one year, landlords must provide at least 60 days’ notice before terminating a lease.
- Limits on Operating Expense Pass-Throughs:
- Landlords cannot pass certain operating expenses onto tenants unless:
- Costs are allocated proportionately.
- Supporting documentation is provided upon request.
- Landlords cannot pass certain operating expenses onto tenants unless:
- Language Accessibility:
- Lease negotiations conducted in non-English languages such as Spanish or Chinese require a translated agreement to be provided before signing.
How Tenants Can Prepare for SB 1103
- Review your current lease agreements for compliance with SB 1103 requirements.
- Submit your written notice and self-attestation to your landlord early.
- Seek legal guidance to address potential disputes.
Boost Your Business with SB 1103 Tenant Rights
This new law empowers small businesses by enhancing transparency and fairness in leasing agreements. Stay proactive and make the most of your rights.
Visit Paracuellos Law Group to learn more about SB 1103 tenant protections.
