One of the most frustrating parts of a commercial lease is the "Common Area Maintenance" (CAM) fee or building operating costs. Often, these fees are opaque, leaving tenants wondering exactly what they are paying for.
For Qualified Commercial Tenants, SB 1103 brings much-needed transparency:
- Supporting Documentation: Landlords can no longer just send a bill for CAM fees. They must provide an itemized quote, contract, or receipt from the service provider.
- Allocation Formulas: The landlord must show exactly how your share of the costs was calculated.
- Signed Attestation: The landlord must sign and date a statement swearing that the costs are true and correct.
If a landlord attempts to evict you for non-payment of these operating costs but has failed to provide this required documentation, you may have a strong affirmative defense in court. Our firm has seen many cases where landlords skip these steps, and we use that lack of compliance to protect our clients' businesses.