How much can a landlord of commercial property raise the rent in 1 year?

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How much can a landlord of commercial property raise the rent in 1 year?

I am a small business owner. My landlord can raise the rent 2% annually, however she has not. Now she wants to raise it 10% (5 years worth). Is this legal?

Asked on June 29, 2011 under Real Estate Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Probably not but understand that commercial renters usually have less rights under landlord tenant law than residential renters. This is the different between protections given for living conditions (a public policy matter) over the business issue. Here is your option. 2% annually is one thing; 10% could be considered unconscionable but again it depends on if California usury laws would apply here. This is not a loan but rather the cost to rent. Your best bet is to contact the California Department of Consumer Affairs and find out if it a) covers commercial lease complaints and b) if it can get you pertinent information to use in correspondence with your landlord.


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