California has passed Senate Bill No. 1103, which extends specific protections traditionally reserved for residential tenants to “qualified commercial tenants.” Starting January 1, 2025, small businesses, nonprofits, and microenterprises that meet specific criteria will gain additional rights under the law, including limits on operating cost allocations and required notice periods for rent increases and lease terminations.
The stated aim of these protections is to create a fairer leasing environment for small commercial tenants across the state. Commercial landlords will need to adjust their practices to comply with these new standards, particularly regarding rent increases, lease translation requirements, and transparent cost-sharing. For a complete overview of these changes, read the full article here.