How Do COVID Eviction Moratoria Affect Commercial Landlords?

AdobeStock_229466821-300x200For over two years, landlords throughout California have shouldered the financial burdens of eviction moratoria. Federal, state and local laws have limited the circumstances, manner, and time in which a landlord could remove a tenant delinquent on rent or other obligations under the lease. While some would argue these measures were a necessary health precaution during the worst of the pandemic, they shifted the financial burden of missed rental payments onto landlords in most respects. Now, landlords are finally experiencing some relief as eviction moratorium laws expire. Learn more about commercial landlord rights in California under current eviction regulations.

How California Has Handled Commercial Tenant Evictions

Governor Newsom’s latest executive order extended eviction moratoriums on commercial landlords through September 30, 2021. Since that date has lapsed, commercial tenants are no longer protected under the expired law and must rely on state and local regulations still in effect. In sum, commercial landlords may start eviction proceedings against tenants in the counties where no extension has been provided. In some counties, local ordinances have extended eviction moratoriums and protections. Los Angeles County, for example, has created a two-phase tenant protection resolution. Different eviction rules will apply as the procedures are phased in throughout 2022. In Santa Clara County, commercial tenants must now be caught up on at least fifty percent of their arrears, or they could be subject to eviction. Tenants have until August 19, 2022, to be fully paid up on their arrears. Each county has its own rules, so be sure to consult with an attorney about your specific situation.

What Commercial Landlords Can Do to Protect Their Property Rights

Whether or not your local county has eviction moratoria in place, there are still important steps business owners must take to protect their property rights. It is important to consult with a commercial real estate lawyer who can advise you on the best strategy for protecting your legal rights. An experienced attorney can help ensure that your business follows all the necessary procedures for eviction. Landlords must gather documentation and follow other steps in order to successfully evict a tenant. With proper advance planning, you can position yourself to successfully evict delinquent tenants as soon as it is lawfully allowed.

Even if you are not able to evict a commercial tenant, there might be alternative solutions that mitigate your financial losses while maintaining a relationship with an otherwise suitable tenant. Many businesses are starting to experience growth after the steepest financial losses of the pandemic. In these circumstances, some commercial tenants may desire to negotiate a repayment plan rather than face an eviction, relocate, or otherwise abandon their current location. Our experienced commercial landlord attorneys are skilled in working out creative arrangements that work for everyone.

Call Us Today to Speak with a California Business Attorney

Business owners know that hiring a professional at the outset saves money in the long run. In the case of commercial landlord-tenant disputes, the costs of litigation and lost rent can be devastating to a landlord’s finances and can have a negative impact for years to come. The experienced California business lawyers at Structure Law Group know how to resolve commercial landlord-tenant disputes. Call (408) 441-7500 to schedule a consultation or contact us online.