Legal Question in Landlord & Tenant Law in California
commercial lease
i have 5 yr commercial lease signed 4 yrs ago with a provision for no more than a 4% increase per year. i have recieved and paid all my bills on time. the landlord has now sent me a bill stating that they (property managers) overlooked the rent increases and want to charge me the ''back rent''. they sent one bill showing the past due amounts. as i am a small business this amount all at once has the potential to put me out of business. what are my legal rights.
2 Answers from Attorneys
Re: commercial lease
To answer your question, I would have to review the contract for you, which I would be happy to do without charge. If the landlord failed to exercise his option, he's likely out of luck. But, as the other answer indicated, the increases might be automatic.
Re: commercial lease
It is quite impossible to answer your question without reading the entire lease. Your legal rights are governed directly by the language of of the rental contract. The lease might limit increases to no more than 4% per year, but you didn't mention if increases were mandated.
I've seen commerical lease provisions that contain automatic increases based on inflation. I've seen clients get stuck with increased rental bills months later becuase the landlord forgot to sent them a bill for the correct amount. The tenants were fully aware of the mandatory increase provisions and figured the landlord wouldn't say anything. They were wrong and ended up paying the rental increase.
In some cases, the clauses require the tenant to pay the increase rent regardless of whether they receive a notice or not. You should take the lease agreement to a local attorney for more information.