Lancaster, CA asked in Landlord - Tenant for California

Q: I am on a month-to-month commercial business location, NO lease. Can the landlord increase my rent by 40%? 30-day notice

i purchased this Tax Office business 3 yrs ago (2020) and at that time the Landlord would ony agree to a month-to-month agreement, so no lease was generated. One year later my Landlord sold to a new Owner the rent stayed the same during Covid-19. New owner is now raising my rent by 40% effective Jan 1, 2024. Can they do this??

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Under California law, in the absence of a formal lease agreement, you are considered a month-to-month tenant. This type of arrangement provides flexibility, but it also means that the landlord has more leeway in terms of changing the terms, including rent increases.

For month-to-month tenancies, the landlord must provide a 30-day notice if the rent increase is 10% or less and a 60-day notice for increases over 10%. Since your landlord is proposing a 40% increase, they are required to give you at least 60 days' notice before the new rate takes effect.

It's important to review any written agreements you may have had with the previous owner, as they may contain clauses that could impact your current situation. However, typically in month-to-month tenancies, unless there's a specific agreement to the contrary, the new owner can change the terms, including rent, following the proper notice requirements.

Do note that certain areas in California have rent control ordinances that may offer additional protections, but these typically apply to residential properties, not commercial ones. As your situation involves a commercial property, these protections may not apply.

In light of this substantial increase, you might want to negotiate with the new owner or consider looking for alternative locations if the new terms are unfeasible for your business. Consulting with a legal professional who has expertise in real estate or commercial tenancy laws can also provide you with more tailored advice for your specific situation.

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