My question involves landlord-tenant law in the State of: CA

Two business partners, we'll call them Alan and Bill, leased a retail unit in a building I manage. They operate a clothing business. Alan funded the startup and pays all business expenses. Bill manages the store on a day-to-day basis. He also contributed much of the beginning inventory.

Alan submitted the lease application and I approved it based solely on his background information/credit check. He is also the only one who signed the lease. Bill is named as a co-tenant in the lease, but he never signed it. Alan prepaid three month's rent and no additional lease payments are due until February.

Disagreements have arisen between Alan and Bill, and they no longer want to work together. Bill has possession of all keys to the unit and refuses to allow Alan entry to it. I gave two duplicate keys to Bill, one being intended for Alan, which Bill did not give to him. Bill wants to run the business himself, however he has no credit history, limited business experience and probably not much in savings. I think he'd be a high risk tenant on his own. There is an unrelated party who is currently interested in leasing the unit. I partially screened them and believe they would be a good tenant.

Alan told me that he plans to "walk away" from the business. Since only he signed of the lease, he is liable for rent for the entirety of the two year lease term. However I think it would be easier and less expensive to just secure another tenant as soon as possible, rather than going after Alan. Perhaps he could be held liable if a new tenant were to default. Prior to move

Alan says that he plans to file a restraining order against Bill and will have Bill removed, with the assistance of the police/sheriff. He has requested that I be there when this happens.


Questions that come to mind include:

  • Am I obligated to accept Bill as the default tenant/lessee if Alan abandons the business, if Bill never signed the lease (but was named in it)? Is Bill even a valid party to the lease if he did not sign?
  • Would Bill have any recourse against me if he is forcibly removed, by action initiated by Alan or by me? Note: the lease does not contain a joint and severable liability clause.
  • If I were to provide an extra key to Alan, allowing him access to the unit, could I be held liable for anything that happens between them, such as one person removing items/inventory claimed to be owned by the other person?
  • Should I/must I allow Bill to remain in the unit until February, when the cost of the air conditioner paid for by Alan has been fully recouped?
  • If a background check on Bill indicates he'd be a a high risk tenant, can I assume that the lease has been broken when Alan leaves and proceed to lease the unit to a new tenant? Or do I need to wait until the prepaid rent has been earned before doing so?
  • If I allow Bill to stay on as sole owner of the business, should I void the existing lease and write a new one, or leave it in place and simply have Bill sign it at this time, with an addendum documenting Alan's termination?
  • Could I be held liable for anything else occurring between Alan and Bill, or is this dispute solely between them?


Thanks in advance for any comments.