Legal Question in Real Estate Law in California
commercial real estate lease termination
My commercial lease will be reaching its end in a couple of days. It was a five year lease. I thought the landord said he would let me rent month to month, but the new property manager said I need to have a new lease for one year. She said that the day after my lease naturally terminates, if I don't sign a new one year lease, she will change the locks. Can she do that? Is there nothing I can do legally? Is she right that she doesn't have to start an eviction proceeding because the lease will have technically ended?
Thanks in advance for your help..
3 Answers from Attorneys
Re: commercial real estate lease termination
No she is not right. Unless you voluntarilty surrender possession, she can get possession only through an eviction. Hire a lawyer to assist you.
Re: commercial real estate lease termination
First, when a lease expires, the tenant is not entitled to notice because it is assumed both landlord and tenant know the terms of the lease. You probably knew that.
Second, most commercial leases cover the subject of "holding over" and rights of the parties upon the expiration of the lease. Rather than relying upon what you were told by a landlord or property manager, you need to read the written terms of your lease, very carefully. Unlike residential leases, where terms that are too harsh on tenants are not permissible, commercial leases can contain almost any provisions the landlord and tenant can agree upon.
I would say that unless the lease says otherwise, the landlord is entitled to take steps to assert its right to possession, including changing the locks. However, California also disapproves of self-help evictions, and the landlord would have to use unlawful detainer procedures rather than physical force to remove the tenant's possessions, employees, etc.
If a landlord accepts future rent from the tenant after expiration of the lease, this may act to renew the lease, see Civil Code section 1945, but it doesn't look as though that is likely to happen here.
Another good reason for departing before the lease expires is that the tenant may lose the right to remove its trade fixtures after the lease expires.
Also note that a holddover tenant is sometimes called a tenant at sufferance.
Re: commercial real estate lease termination
Send me a copy of your lease. I can't give you a canned answer because all leases are different. Go to my website, www.attorneylynch.com, and call me at the listed number.
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