Take Action Against Burdensome Lease Mandates

Senate Bill 1103 is a new law proposal that would change how commercial leases work in California. It aims to protect small business tenants but creates new problems for property owners that may negatively impact small business tenants.

The bill disrupts the current CAM process and imposes strict lease translation requirements for qualified tenants.

We need your help to oppose this measure as it comes up for a vote in the California State Assembly.

Using our one-click advocacy tool, you can send a message to your Assemblymember opposing this bill in two minutes.

The vote could happen anytime in the next week and a half, so take action today!

Key Points of SB 1103

• Translation Requirements: Landlords must translate leases if tenants ask, which adds extra work and legal risks. Initial cost estimates indicate this would start at around $10,000. Plus, it would add operational liability for property managers executing lease terms.
• Cost Limits: The bill prohibits landlords from altering the method or formula used to allocate building operating costs in a way that increases the tenant’s share of those costs during the tenancy. That means unexpected increases in taxes or utilities for the property could not be passed on. This could make it more expensive for landlords, especially with older or larger properties. And would likely drive property owners to charge higher base rents.
• More Paperwork: The bill requires landlords to provide detailed, itemized, and dated documentation of building operating costs within 30 days of a tenant's written request. This requirement is administratively burdensome and costly, especially for small property owners who may lack the resources to maintain extensive records.
• Legal and Financial Risks: These new rules might make landlords hesitant to rent to small businesses because of the added risks. They will negatively impact communities seeking mom-and-pop businesses and instead make major franchises more attractive to landlords.

The bill assumes an adversarial relationship between tenant and landlord, when we know that relationship is meant to be a business relationship where each side can negotiate what they want and need to be successful together.

You can read the full language of the measure here.

Why This Matters for Property Managers and Service Providers

This bill's impact extends beyond a property owner's or business's bottom line. It impacts daily work!

• More Work: Property managers must do more paperwork, leaving less time for managing properties.
• Higher Costs: Landlords may face higher costs because they can't pass on as many expenses to tenants, affecting budgets and maintenance.
• Strained Relationships: As landlords face higher costs and administrative burdens, they might become less flexible or more cautious in their dealings with tenants, potentially creating tension and reducing collaboration between the two parties. Property managers would be on the frontlines of those conversations.
• Contract Changes: Service providers might need to adjust contracts to meet the new rules, which could add complexity and risks.

SB 1103 could complicate managing properties and services, requiring more focus on legal and financial details.

While this bill has the best intentions, it will harm the businesses it aims to protect.

If the bill passes the California State Assembly, we will have another chance to oppose it when it returns to the State Senate.  

Don't wait, take action today!