California Commercial Lease Agreement

Limits on Security Deposit Amounts

• The state of California doesn’t impose a limit on the security deposit that can be charged. Some factors that go into this decision can include the location, business type, competition in the area, and more. 

• Key money is demanding money as a condition to start, continue, or renew a commercial lease.

Right of Entry for Inspections and Repairs

• According to California state law, landlords need to provide reasonably advanced notice before entering a commercial property for inspections, maintenance, or repairs. However, the state hasn’t defined what ‘reasonably advanced’ means. Therefore, most legal experts in the area agree that it should be at least 24 hours.

• Reasonable notice only needs to be given in the event of scheduled inspections or repairs. In the case of an emergency, the Landlord may gain access to the property.

Compliance With Accessibility Requirements Under the Americans With Disabilities Act (ADA)

There are certain requirements under the Americans with Disabilities Act (ADA) when it comes to a California commercial lease agreement. 

• All commercial properties must be inspected by a Certified Access Specialist (CASp). They’ll make sure it adheres to all the applicable construction-related access standards.
• The landlord must also supply the prospective tenant with a copy of the inspection report at least 48 hours before the lease is executed. If this report isn’t provided to the tenant within this period, they’re allowed to rescind the lease.
• If the property hasn’t been inspected by a CASp before a new lease, then the rental agreement must clarify this.
• The commercial lease must also state that the tenant can arrange for the inspection at their earliest convenience. It should also outline who will be responsible for the associated costs.

Commercial Rent Control Ordinances in Certain Jurisdictions

When it comes to a California commercial lease agreement, there are rent control regulations. However, these regulations can vary based on location and type of commercial property. To avoid any confusion, rent increases are usually clarified in the terms of the lease agreement.