Is there a maximum as to how much a landlord can raise rent on a commercial lease?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Is there a maximum as to how much a landlord can raise rent on a commercial lease?

My company is located in West Hollywood, CA. The current commercial lease is
3,900.00 per month and we were supposed to renew the lease as of May 1st,
but have not signed yet because the landlord increased the monthly lease to
4,400.00. Is there a maximum as to how much a landlord can raise rent on a
commercial lease?

Asked on May 9, 2019 under Real Estate Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

No, there is not, unfortunately. While there commonly are limits on residential rent increases to ensure that people are not priced out of their homes, there is no such concern or policy or protections for commercial tenants. Rather, since commercial tenants are seen as "sophisticated entities" able to bargain, negotiate, and do what is in their own interest (i.e. decide if the rental, given its cost, is right for them), and since there is no humanitarian concern over homeless businesses the way there is homeless people, a commercial landlord is free to ask for any amount of rent he wants. The belief is that the market will dictate an appropriate rent; a too-greedy landlord will be unable to lease his premises. But that said, a landlord can be too optimistic or greedy and can ask for more than is reasonable, if he wants.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption