The rising cost of living is putting pressure on households and businesses, with small business owners facing another major expense: the cost of keeping a commercial space. Now, L.A. County is exploring new measures aimed at giving small commercial tenants more protection.
What the proposed protections could mean for business owners
The proposal would create a Commercial Rental Property License for landlords leasing commercial property in the County’s unincorporated areas. The licensing system is still being designed, but it could require landlords to provide information such as the size of a commercial unit, its rent, whether it is occupied, and how long a tenant has been there.
The County is also considering rules that could provide relocation assistance to commercial tenants displaced because a landlord violated the existing Commercial Tenant Anti-Harassment Ordinance, as reported by L.A. Public Press.
Under the proposed framework, that assistance could be based on the greater of three months of the tenant’s gross receipts or three months of fair-market rent for an equivalent space, plus moving costs. The County is also expected to study whether a cap should apply.
The proposal also includes a potential Special Status license for landlords who voluntarily limit rent increases to no more than 3% annually for 10 years. Possible County incentives could be tied to that status, but those details have not been finalized.
When would these changes take effect?
On September 1st, the L.A. County Board of Supervisors approved a motion directing County departments to study and develop the proposed measures.
The County has 120 days to provide several reports and recommendations, while a draft ordinance on relocation assistance tied to commercial tenant harassment violations is due within 180 days.
For now, these are potential future protections, not changes to existing commercial lease or relocation rules.
