What North San Diego Commercial Property Owners Need to Understand about Landlord-Tenant Laws

Working with tenants in a commercial property is often a little different than working with tenants in a residential property. While the tenants you place own their own businesses, you’re the one who owns the building. This can create some tension if the relationship isn’t managed properly.

At North San Diego Property Management, we’ve spent years managing multifamily and commercial properties in the North County area , including in Oceanside, Carlsbad, Vista, San Marcos, and Solana Beach. Today, we’re taking a look at some of the laws that commercial property owners need to be aware of when they’re renting out their property.

You have the power to decide whether your commercial tenants are permitted to sublease their property, or a portion of their property, to another tenant. However, to deny your consent, you’ll need a valid reason. If you don’t want your tenants subletting an office, a conference room, or any other leased space to a subtenant, you need to put your reasons for the objection in writing. If you don’t, it’s implied by California real estate laws that you don’t have a problem with it.

Landlords all over California are on edge when it comes to the subject of rent control. Many northern California cities and communities are adopting rent control measures, and the rest of state is also investigating what should be done to provide affordable housing to everyone who needs it.

Luckily, commercial properties are exempt from any sort of rent control. The California legislature recognizes that rent control in the commercial space would kill any type of competitive advantage that investment property owners have. So, you won’t need to follow any rent control laws with your commercial property, regardless of where you are in California.

A triple net lease is legal for commercial properties in California. They require your tenants to pay a monthly rent and also to contribute or completely pay for the expenses associate with operating the building and the communal spaces. This might include taxes and utilities as well as maintenance. Not all tenants love the idea of a triple net lease, which means you may need to offer a lower rent in order to incentivize the signing of their lease.

You can generally negotiate any lease terms with your commercial tenants that make sense. Just make sure they’re legally compliant.

If you have any questions or need any help, please contact us at North San Diego Property Management.