Legal Question in Landlord & Tenant Law in California

I have leased a commercial property for about 10 years without making any trouble which is actually an executive office suite. And the contract includes automatic renewal clause and does not allow subletting. I failed to send 60 day advance written notice for not renewing the contract, actually I did it so 45 days advance. Then the office manager told me that the contract is already renewed automatically, and that I have to pay the rent for another 12 months until they find new tenant.

The contract says; "The term of this lease shall be automatically extended for the same period of time as the initial term with the same terms and condition as contained herein, unless either party notifies the other in writing to the contrary at least 60 days prior to the termination date." And "Subletting: lessee shall not sublet or assign the Premises or any part thereof for any period of time. Any subletting or assignment of this lease which is not in compliance with the provisions of this paragraph shall be void, at the option of lessor, terminate this lease. In such event, lessee shall be liable for any expenses lessor may incur in regaining possession of the premises or so much of the premises as lessee may have subleased or assigned without lessor's consent."

So my questions are;

1. Under this situation, is it legal that the contract for this kind of commercial property has auto renew and non-subletting (not allowing subletting)?

2. Under this contract, I mean auto renew but not allowed to sublet, should the lessor give 60 days prior written notice to the lessee? Or the lessor is not required to do so?

3. As mentioned above, I have been a great tenant for them for 10 years. Can this fact ease my obligation to pay another 12 months?

4. Is it possible or better idea to offer them early termination fee like 3 months rent instead of 12 months as our business will be completely out of this country and I will get out of this country and never come back which means no bank will be left here in the states?


Asked on 5/21/13, 1:02 pm

1 Answer from Attorneys

1. Subletting prohibitions are illegal. The landlord is allowed to require the subtenant meet all the qualifications of a tenant and generally has the right to exercise reasonable control over the subletting terms, but consent to subletting cannot "unreasonably be withheld."

2. There is no requirement that the landlord give you any warning of the automatic renewal.

3. No.

4. If you choose to break the lease they can only hold you liable for rent until they locate a new tenant, and they must make "all commercially reasonable efforts" to find a new tenant as quickly as reasonably possible.

So in short, they have every right to hold you to the renewal, but should you elect to move out, they must reasonably accept a subtenant you find, or they must take all reasonable steps to cut their losses by finding a new tenant as quickly as commercially reasonable.

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Answered on 5/21/13, 1:43 pm


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