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When Accepting Rent Can Undermine a Commercial Eviction
- By: admin
- On: 04/20/2026 20:14:06
- In: Codes & Standards
- Comments: 0
A recent California appellate decision Baca v. Kuang (2025) 107 Cal.App.5th 1292 reminds commercial landlords and property managers that what you do after you serve a lease termination notice can have costly consequences to an eviction case.
In this case, a commercial landlord served a valid thirty-day notice to terminate the tenant's month-to-month lease. However, after the notice expired but before filing the eviction action, the landlord invoiced and accepted rent payments from the tenant. The court held that by invoicing and accepting rent following the thirty-day termination period, the landlord had effectively reinstated the month-to-month tenancy. Because the tenant reasonably understood that the lease had continued, the landlord's unlawful detainer action failed.
Why This MattersIn this case, a commercial landlord served a valid thirty-day notice to terminate the tenant's month-to-month lease. However, after the notice expired but before filing the eviction action, the landlord invoiced and accepted rent payments from the tenant. The court held that by invoicing and accepting rent following the thirty-day termination period, the landlord had effectively reinstated the month-to-month tenancy. Because the tenant reasonably understood that the lease had continued, the landlord's unlawful detainer action failed.
Commercial landlords often invoice and accept rent either automatically or without thinking that it will affect a pending or prospective eviction. This case underscores that invoicing for and accepting rent after giving a termination notice can be viewed by the court as signaling that the landlord has waived the termination or chosen to continue the tenancy — even if that was not the landlord's intention.
Takeaways for Property Managers and Owners
- Keep post-notice conduct consistent: After serving a termination notice, avoid actions that could reasonably be viewed as renewing or continuing the lease, such as invoicing and accepting rent, unless you intend to treat the tenancy as continuing.
- Document reservations of rights: Documentation of any payments should be sufficient that rent acceptance is without waiver of termination or eviction rights.
- Coordinate with legal counsel early: Small errors in timing, acceptance, or communication with the tenant after serving the tenant with a termination notice but before filing an eviction action can undermine an eviction case.
For commercial property owners and managers, this case highlights that procedural and business decisions following service of a lease termination notice can be just as important as the notice itself. Thoughtful handling of invoicing, rent payments and clear documentation can help preserve the validity of an unlawful detainer claim.
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