Starting in 2025, the Commercial Tenant Protection Act (SB 1103) introduced sweeping protections for a specific group known as "Qualified Commercial Tenants" (QCTs). This law is a game-changer for the "mom-and-pop" shops that make San Diego County so vibrant.
You are likely a Qualified Commercial Tenant if your business falls into one of these categories:
- Microenterprises: Businesses with five or fewer employees.
- Small Nonprofits: Nonprofits with fewer than 20 employees.
- Small Restaurants: Certain dining establishments with fewer than 10 employees.
The Catch: These protections are not automatic. To benefit from SB 1103, you must self-identify as a QCT in writing to your landlord. You must do this before signing a lease (for leases over 30 days) and then re-certify this status annually. If you haven't provided this notice yet, it's a step you should take immediately with the help of an eviction attorney in San Diego.
How Do Rent Spike Protections Work?
Many San Diego business owners have faced the "rent spike": a sudden, massive increase in monthly rent that makes staying in business impossible. SB 1103 addresses this by requiring longer notice periods for significant increases.
- Increases of 10% or less: The landlord must provide at least 30 days’ written notice.
- Increases of more than 10%: The landlord must provide at least 90 days’ written notice.
This 10% threshold includes all cumulative increases made within the prior 12-month period. If your landlord tries to raise your rent by 15% but only gives you 30 days’ notice, they may be in violation of the law. This can be used as a powerful tool in negotiations or as a defense if the landlord attempts to evict you for not paying the increased amount.