How to Handle Property Left Behind by a California Commercial Tenant

This article discusses how a California landlord should handle personal property left behind by a commercial tenant.  Although not mandatory, landlords should follow the steps outlined in California Civil Code section 1993 et seq. when selling or otherwise disposing of such property.  Commercial landlords can use other reasonable means to dispose of the abandoned property, but section 1993 et seq includes liability protections for landlords who comply with its provisions. 

The Notice

The first step in the process involves serving a notice to the former tenant and anyone else the landlord reasonably believes has an ownership interest in the personal property. The notice must describe the abandoned personal property.  The more detailed the better, since a landlord is shielded from liability for listed items where the notice complies with Section 1993. 

The notice must state that the tenant can retrieve the property within 18 days from the date the notice is mailed, or 15 days if personally delivered.  If the property is not claimed within this time frame, the landlord may either hold a public auction, or dispose of it in another manner described below, depending on the item’s value.

Storage Cost Reimbursement on Reclaimed Property

If the tenant or owner claims the personal property within the prescribed time frame, the landlord can condition return of the property on receipt of reasonable storage costs beginning when the tenant vacates the commercial space.  The landlord cannot require that the tenant pay any other amounts, such as past or future rents due.

Valuation and Disposal of the Property

Commercial landlords must assess the total value of the abandoned personal property.  If it is worth less than $2,500.00, or an amount equal to one month’s rent (whichever is greater), the property may be kept, sold, donated or destroyed if the former tenant fails to reclaim it within 18 days of service of the notice.  If the abandoned property is worth $2,500.00, or more than an amount equal to one month’s rent (whichever is greater), the property must be sold through public auction.

If the personal property left behind is an abandoned vehicle, the California Vehicle Code should be followed.  If the vehicle owner does not claim the vehicle, it can be sold to satisfy the towing and storage costs after complying with applicable Vehicle Code requirements for disposing of the vehicle.

Lynx Legal has handled over 12,000 evictions over the past 13 years, many of them involving commercial property.  Please contact us for all your eviction needs, at 888-441-2355 or [email protected].  Our experienced staff is standing by to answer any inquiries you may have or start your case if you are ready to proceed.