The Coronavirus pandemic has significantly impacted business owners in Los Angeles, San Jose, Oakland, and all other areas of California (and the U.S. overall). The sudden downturn in the economy (primarily due to stay-at-home orders issued in California and other states), has resulted in many commercial tenants being sent into dire financial straits and unable to pay their rent. If you own a business in or around Los Angeles, San Jose, or Oakland, and are struggling to come up with the necessary funds to pay the rent owed for your business location, RS Law Offices is here to help. RS Law Offices is comprised of attorneys and professionals who possess extensive legal knowledge, especially in the realm of commercial leases and landlord-tenant disputes. We possess the skill and dogged determination to appropriately analyze your situation and decipher the complex details of your commercial lease to ensure you are in the strongest position possible when attempting to re-negotiate your lease with a landlord. We are proud to have helped many commercial tenants in Los Angeles, San Jose, Oakland, and all other areas throughout the great State of California.
Since we are living in unprecedented times and struggling to combat a worldwide pandemic, it is important to know that legal protections have been put in place to help tenants struggling to pay the rent who may have been threatened with an eviction action by a landlord. For example, the California Judicial Council recently issued an order prohibiting all California courts from issuing an unlawful detainer summons for at least 90 days after the Governor's declaration that California is in a State of Emergency due to the COVID-19 pandemic. This order means that landlords may not file an unlawful detainer action in a California court to try and evict a residential or commercial tenant during the pandemic. In effect, tenants were provided with a temporary reprieve from having to pay rent. However, unfortunately, it is does not mean that the rent owed is forgiven or wiped clean. Instead, many tenants are confronting the prospect of owing significant sums to landlords if and when we get through the Coronavirus pandemic. According to Cal Civil Code § 1167, any tenant who cannot afford to pay rent in a timely manner must deliver to their landlord a written notice expressly stating that the tenant is unable to pay the month's rent as a result of the Coronavirus pandemic. This written notice must be provided to the landlord within 7 days from the day the rent is owed.
The California legislature extended an authorization empowering local governments to delay eviction
proceedings through the end of September 2020 for tenants adversely impacted by the Coronavirus
pandemic. In fact, it appears county and municipal governments have been vast authority to impose
eviction restrictions and rent relief measures that are suitable for their respective jurisdictions.
A landlord cannot ask you to provide proof of a reduction in your income. Nevertheless, you are
required to maintain access to relevant financial documents in order to support your claim that your
income was impacted by COVID-19. It is also worth noting there are many local ordinances that require
you to demonstrable financial hardship or disruption to business income due to the COVID-19 pandemic.
This hyper-local legislative authority means that some cities in California offer more guidance than
others on what qualifies as an economic disruption or financial impact due to the COVID-19 pandemic
and what documentation is required to demonstrate you are suffering financial harm as a result of the
COVID-19 pandemic.
For example, there are ordinances that have been codified in San Francisco defining financial impact as a
“substantial decrease in business income due to illness or other disruption reduced opening hours or
reduced consumer demand, or temporary closure of the business, including temporary closure required
by the local shelter in place orders.” Similarly, San Diego defines financial impact as a “substantial
decrease in business income due to business closure, loss of compensable hours of work or wages,
layoffs, or substantial out-of-pocket medical expenses.” The City of Los Angeles provides examples of
circumstances when a tenant may be unable to pay rent due to the COVID-19 pandemic, including
If a tenant fails to timely and sufficiently demonstrate a financial impact as a result of the COVID-19 pandemic, it may lose the eviction protections under local ordinances.
Instead of relying solely on the rent reprieve described above, it may be beneficial to reach out to your
cash flow-weary landlord to gauge their interest in potentially re-negotiating the monthly rent to a more
reasonable amount. For example, if you are currently paying $5,000 per month for a commercial space
for your business, you could approach your landlord about re-negotiating the lease to where you pay
$3,000 per month. If your landlord is in need of cash flow, they may be amenable to such a reduction.
Another reason landlords may be open to re-negotiating commercial lease agreements is because if an
eviction winds up going to trial, there is a good chance you (i.e. the tenant) could prevail in limiting the
amount of, or outright eliminating, the amount owed for rent. This could be accomplished by asserting
one or more affirmative defenses, including:
Though, it is important to note that, in order for these affirmative defenses to be viable in court, you need to present evidence that your financial situation was, and continues to be, severely impacted as a result of the economic downturn and pandemic.
There are many attorneys and law firms in and around Los Angeles, San Jose and Oakland who try to succeed as a "jack of all trades" when it comes to practicing law. This is not the type of attorney you should choose when you need legal help re-negotiating a complex commercial lease with a disgruntled landlord. You should select a lawyer who understands the intricacies of commercial lease provisions and landlord-tenant disputes. Hiring an attorney with experience will better position you to receive sage advice on how to approach re-negotiating your commercial lease.
It is extremely important to retain the services of an attorney who has actual experience taking a case to court and arguing before a judge and/or jury. Why? Because you want a lawyer who is willing and able to "go the distance" to advocate for your best interests and prevail in your case. One of the best ways to do that is hiring a lawyer who is not afraid or hesitant to present your case in a court of law.
Your commercial lease case is important and you deserve the best legal advice and representation possible. This is why you owe it to yourself to retain the services of a law firm that has a proven track record of successfully re-negotiating commercial leases and resolving contentious landlord-tenant disputes.
The legal team with RS Law Offices is proud to serve residents throughout California. Whether you reside in Los Angeles, San Diego, San Jose, Oakland, Napa, Sacramento, San Francisco, or any other area, our law firm is ready and able to help.
When you retain RS Law Offices for your commercial lease case, be rest assured that you are more than just a case number. You instantly become a member of the RS family. We do all we can to put you at ease and make sure that we are available 24/7 to answer any and all of your questions and address any concerns.
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Take action today by contacting RS Law Offices to schedule a free, confidential consultation.