Pass operating costs through the way the lease says.
Civil Code 1950.8 applies to every commercial lease and nonresidential tenancy in California. It sets the rule for recovering building operating costs through rent, and limits what a landlord may demand to start or renew a lease.
Recovering operating costs
Under subdivision (f), rent may be increased to recover building operating costs incurred on the tenant's behalf if the lease states the right to do so, the method of calculation and the period covered.[1]
Our readingSo the first questions about any CAM, tax or insurance bill are whether the lease gives that right, how it says the amount is worked out, and what period it covers.[1]
Payments to start or renew a lease
Qualified commercial tenants
For a qualified commercial tenant, Civil Code 1950.9 adds conditions before any building operating cost can be charged, including documentation the tenant can ask for.[2]
Checked October 2026 against official sources
Each statement above links to the official page it comes from. We read every one on October 25, 2026.
- 1Civil Code 1950.8
Payments a landlord may demand in a commercial lease, and passing operating costs through (1950.8(f)).
leginfo.legislature.ca.gov, checked October 25, 2026
- 2Civil Code 1950.9
Building operating costs charged to a qualified commercial tenant (SB 1103).
leginfo.legislature.ca.gov, checked October 25, 2026
Change log
- October 23, 2026First version, checked against the official text.
- October 25, 2026Checked again against the official text. No change was needed.
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