Commercial Eviction in California: The Complete 2026 Guide for Landlords

Commercial evictions operate under a fundamentally different legal framework than residential evictions in California. Understanding these differences can mean the difference between a swift resolution and months of costly delays. Here's what every commercial landlord needs to know.

The Fundamental Difference: Contract Law vs. Tenant Protection

California courts treat commercial and residential tenancies very differently. Residential tenants receive extensive statutory protections because they're presumed to have less bargaining power than landlords. Commercial tenants? The law assumes you negotiated your lease as equals.

This means your commercial lease is the primary governing document—not a web of protective statutes. The terms you negotiated (or failed to negotiate) will largely determine your rights and remedies when things go wrong. For residential evictions, see our California eviction process guide.

AB 1482 Does NOT Apply to Commercial Properties

One of the most significant differences: California's Tenant Protection Act (AB 1482) only applies to residential properties. As a commercial landlord, you are not bound by:

• Just cause eviction requirements: You don't need a specific "just cause" reason to non-renew a commercial lease
• Rent caps: No 5% + CPI annual increase limitations
• Relocation assistance: No mandatory payments for no-fault evictions

Instead, you look to your lease terms. If the tenant breaches, you have remedies. If the lease expires and you don't want to renew, you simply don't renew.

Valid Reasons to Evict a Commercial Tenant

The most common grounds for commercial eviction include:

• Non-payment of rent: The overwhelming majority of commercial evictions
• Lease violations: Operating outside permitted use, unauthorized alterations, subletting without consent
• Illegal activity: Using the premises for unlawful purposes
• Holdover tenancy: Remaining after lease expiration without renewal
• Abandonment: Vacating mid-lease without notice
• Bankruptcy: Though this triggers federal automatic stay provisions

Notice Requirements: Your Lease May Override the Defaults

Here's something many commercial landlords don't realize: California law allows commercial leases to modify statutory notice requirements. Your lease may specify different notice periods, delivery methods, or cure windows than the default rules.

Default Notice Types (When Lease is Silent)

Important: Many commercial leases provide 5, 10, or even 30 days to cure defaults. Always check your lease before serving notice—using the wrong cure period can invalidate your notice and force you to start over.

Key Advantages for Commercial Landlords

Commercial evictions offer several procedural advantages over residential cases:

1. Partial Rent Acceptance

In residential evictions, accepting partial rent after serving a 3-Day Notice typically waives your right to proceed with the eviction. Commercial landlords can accept partial payments without waiving the eviction—though you should still document that acceptance doesn't constitute waiver.

2. No Habitability Defense

Residential tenants can withhold rent if the property is "uninhabitable." Commercial tenants have no implied right to habitable premises unless your lease specifically provides it. A leaky roof or broken HVAC doesn't give your commercial tenant the right to stop paying rent.

3. Simplified Property Disposal

When a residential tenant leaves belongings behind, landlords must follow strict notice and storage requirements. For commercial tenants, California Civil Code §1993 provides a streamlined process:

• Serve notice giving 15-18 days to reclaim property
• If property value is less than $2,500 or one month's rent (whichever is greater), you can keep, sell, donate, or dispose of it
• Higher-value property must be sold at public auction
• Business records with private information must be securely destroyed

4. Lease-Based Remedies

Well-drafted commercial leases include powerful remedies unavailable in residential contexts:

• Rent acceleration: All remaining rent becomes due immediately upon default
• Late fees: More flexibility in structuring penalties
• Personal guarantees: Pursue the business owner individually
• Confession of judgment: Pre-agreed judgment terms (limited enforceability)
• Security deposit application: Fewer restrictions on use

The Commercial Eviction Timeline

A typical uncontested commercial eviction in California takes 5-8 weeks. Here's the breakdown:

New Laws Affecting Commercial Evictions (2025-2026)

AB 2347 (Effective January 1, 2025)

This law doubled the tenant response time from 5 to 10 business days. It adds approximately two weeks to your overall timeline but applies to both commercial and residential unlawful detainers.

AB 1384 (Effective January 1, 2026)

Good news for commercial landlords: this law closes a procedural loophole that tenants used to delay trials. Previously, commercial tenants could file demurrers (motions to dismiss) without a guaranteed hearing date, stalling cases for months.

Under AB 1384, demurrers in commercial unlawful detainers must be heard within 5-7 court days of filing. If the court needs more time, the hearing cannot be more than 10 additional court days later. This ensures commercial evictions proceed on schedule.

Damages Beyond the Unlawful Detainer

Here's a critical distinction: unlawful detainer courts can only award possession and back rent owed through judgment. If your tenant has 3 years left on a $10,000/month lease and defaults, you cannot recover the remaining $360,000 in future rent through the eviction case.

To recover future rent damages, you must file a separate civil lawsuit. This is why rent acceleration clauses matter—they convert future rent into a present obligation, though California courts require landlords to mitigate damages by attempting to re-let the space.

Common Commercial Eviction Mistakes

• Using wrong notice period: Your lease may require longer cure periods than statutory minimums
• Self-help eviction: Changing locks, shutting off utilities, or removing property without a court order exposes you to significant liability
• Accepting rent during eviction: While less risky than residential, best practice is to refuse or clearly document non-waiver
• Incomplete notice: Failing to specify exact amounts owed or precise lease violations
• Improper service: Commercial tenants must be served according to statutory requirements or lease-specified methods
• Ignoring lease provisions: Many commercial evictions fail because landlords follow statutory defaults instead of negotiated lease terms
• Skipping the personal guarantee: If your lease has one, pursue the guarantor personally—especially if the business entity has limited assets

When to Consider Negotiated Surrender

Sometimes the fastest path isn't through the courts. Commercial tenants facing eviction often prefer to negotiate a surrender agreement rather than have an eviction judgment on their record. This can include:

• Agreed move-out date (often faster than court process)
• Partial rent forgiveness in exchange for immediate possession
• Release of personal guarantee claims
• Waiver of future rent claims

An experienced attorney can help you evaluate whether litigation or negotiation better serves your interests—considering the tenant's assets, lease terms, and your timeline for re-leasing.

Protect Yourself: Lease Drafting Matters

The best commercial eviction is one you never have to file. Strong lease provisions include:

• Clear default definitions and cure periods
• Rent acceleration clauses with specific calculation methodology
• Personal guarantees from principals
• Attorney's fees provisions (note: California makes these reciprocal)
• Specific notice delivery methods and addresses
• Right to enter and show premises during default
• Security deposit terms with clear application rights

Financial Considerations for Commercial Landlords

This section provides general information about financial planning for landlords. It is not legal, tax, or financial advice. Consult qualified professionals for your specific situation.

Commercial property ownership creates financial complexity beyond lease management. Most commercial landlords report rental income on Schedule E (Form 1040) or through a pass-through entity like an LLC or S-corp. Understanding how eviction-related costs fit into your overall tax picture matters.

Deductible Eviction Expenses

Attorney fees, court filing costs, and process server charges are generally deductible as ordinary business expenses in the year incurred. If you're using accrual accounting, you may deduct them when the liability is established rather than when paid.

Post-eviction property repairs present a common tax question: repair vs. capital improvement. Repainting walls damaged by a tenant? Generally deductible as a repair. Replacing the entire HVAC system they destroyed? Likely a capital improvement that must be depreciated over 39 years (commercial property). The IRS's tangible property regulations (Treas. Reg. §1.263(a)-3) provide the framework, but the line isn't always clear.

Vacancy Period Tracking

Rental income stops during an eviction, but your mortgage, insurance, and property taxes don't. Tracking vacancy periods by property helps you understand true cash flow and provides documentation for your CPA when calculating passive activity limitations under IRC §469.

Multi-property landlords often use dedicated tracking tools—spreadsheets, property management software like Buildium or AppFolio, or financial planning platforms like X1 Wealth—to monitor cash flow across their portfolio.

Get Expert Help With Your Commercial Eviction

Commercial evictions involve higher stakes than residential cases—larger rent amounts, longer lease terms, and more sophisticated tenants who may aggressively defend. The procedural requirements are strict, and mistakes can cost you months of additional lost rent.

If you need to evict a commercial tenant in Orange County, Los Angeles, Riverside, or San Bernardino County, call 714-832-3651 to speak with an attorney who handles commercial unlawful detainers regularly. We'll review your lease, advise on the fastest path to possession, and handle the process from notice through lockout.