Commercial Lease Default Calculator

Estimate your total damages from a commercial lease default in California. Calculate unpaid rent, late fees, mitigation costs, and projected recovery under different collection methods.

Lease Details

Base monthly rent payment

Or estimate remaining months in lease

Amount available to offset damages (CA Civil Code §1952)

Common area maintenance and other pass-through charges

Default Details

Utilities, maintenance, or other breach-related costs

Mitigation & Re-letting

Broker fees, tenant improvements, marketing

Additional Damages

Recoverable under CA Civil Code §1951.2

Default 10% per CA Civil Code §3289

Damages Summary
Unpaid Rent + CAM $0
Late Fees $0
Remaining Lease Obligation $0
Mitigation Credit (New Tenant) -$0
Re-letting Costs $0
Property Damage $0
Prejudgment Interest $0
Legal Costs $0
Subtotal (Before Credits) $0
Security Deposit Credit -$0
TOTAL DAMAGES $0
Recovery Comparison

Your net recovery under different collection methods

Legal Collects
85% Keep (15% fee)
$0
Traditional Agency
67% Keep (33% fee)
$0
Litigation Firm
60% Keep (40% fee)
$0
Save $0 by using Legal Collects vs. traditional methods

California Legal Framework

CA Civil Code §1951.2 - Landlord's Remedies on Abandonment

Allows landlords to recover the rent due over the remainder of the lease term minus the fair rental value the space could have generated with reasonable efforts to mitigate. This includes unpaid rent, CAM charges, late fees, and reasonable mitigation costs.

CA Civil Code §1951.4 - Right to Continue Lease

If the tenant abandons the property, the landlord may elect to terminate the lease and recover all damages incurred (the measure used in this calculator) or continue the lease and collect rent as it becomes due. Most commercial landlords use the §1951.2 approach to minimize losses.

CA Civil Code §1952 - Security Deposits

Security deposits must be used to offset damages before judgment is rendered. The amount that can be applied is limited to the actual damages proven. Unused portions must be returned within 21 days with an itemized statement.

CA Code of Civil Procedure §1161 - Unlawful Detainer

The statutory proceeding for eviction when a tenant fails to pay rent or breaches the lease. This is the primary mechanism for recovering possession and damages for non-payment in California commercial leases. Judgments typically occur within 30-60 days.

CA Civil Code §3287 & §3289 - Prejudgment Interest

When a breach of contract occurs and damages are determined by judgment, prejudgment interest accrues at 10% per annum from the date of default. This is automatically calculated by the court unless the contract specifies a different rate. The calculator applies the 10% statutory rate from default date to current date.

Frequently Asked Questions

How is the remaining lease obligation calculated?
The remaining lease obligation is calculated as the difference between the original rent and the new tenant rent, multiplied by the remaining months on the original lease. This represents the "rent differential" damages under CA Civil Code §1951.2, which assumes the landlord will mitigate by re-renting the space.
What if the new tenant rent is higher than the original?
If you re-let the space for more than the original rent, the remaining lease obligation becomes zero or negative (a credit). California law requires landlords to mitigate damages, so higher rents actually reduce your damages claim. However, you still recover unpaid rent, CAM, late fees, and re-letting costs.
Can I really recover attorney fees and court costs?
Yes, under CA Civil Code §1951.2, reasonable attorney fees and court costs incurred to enforce the lease or recover damages are recoverable as part of the judgment. These must be documented and proven at trial. Many landlords hire attorneys to pursue collection, making this a significant component of total damages.
How is prejudgment interest calculated?
Prejudgment interest accrues at 10% per annum (or the contract rate if higher) from the date of default until judgment. This is mandatory in California for breach of contract actions. The calculator automatically computes this from your default date to today using simple daily interest: (damages × 0.10 × days / 365).
What's the difference between using Legal Collects vs. litigation?
Legal Collects charges a 15% contingency fee, meaning you keep 85% of recovered damages. Traditional collection agencies typically charge 30-40%. Litigation firms may charge 30-40% or hourly rates. The calculator shows your net recovery under each scenario. With Legal Collects, you maximize your recovery while minimizing risk.
How long does commercial lease default recovery take?
An unlawful detainer (eviction) action typically takes 30-60 days. A damages collection through ordinary suit may take 6-12 months. Legal Collects handles the complexity while you continue your business. Most cases settle before trial, shortening the timeline significantly.
Can I claim CAM charges even if the tenant never paid them?
Yes. CAM charges are part of the lease obligation under CA Civil Code §1951.2. If the lease requires the tenant to pay CAM and they defaulted without paying it, you can recover the unpaid CAM balance plus prejudgment interest. This is included in the "Unpaid Rent + CAM" line of the calculator.
What happens to the security deposit in a lease default?
The security deposit is credited against total damages per CA Civil Code §1952. However, you must prove the amount of damages first. If damages exceed the deposit, you collect the difference. If damages are less than the deposit, you return the unused portion with an itemized statement within 21 days. The calculator automatically subtracts the deposit from total damages.

Ready to Recover Your Damages?

Submit your case to Legal Collects today. Our team will review your commercial lease default, verify damages, and handle collection through settlement or litigation. No upfront costs—we only get paid when you do.

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