For many ministries, these short‑term agreements have long provided flexibility and predictability. SB 1103 doesn’t eliminate that structure, but it does introduce new notice requirements that every landlord, church, and nonprofit tenant needs to understand.

Qualified Commercial Tenant:
At the heart of SB 1103 is a new legal category: the Qualified Commercial Tenant. A tenant falls into this category if it meets two criteria.

First, it must be one of the following:

• A microenterprise with five or fewer employees
• A restaurant with fewer than ten employees
• A nonprofit organization with fewer than twenty employees

Second, the tenant must provide written notice to the landlord confirming that it qualifies and stating its employee count for the prior 12 months. This certification must be delivered either at the time the agreement is signed or—if the tenancy is periodic—within the previous 12 months.

For churches and nonprofits, this threshold is easy to meet. Most ministries operate with small staff teams, which means the vast majority of church tenants now qualify for these protections.

Once a tenant qualifies, SB 1103 imposes longer notice periods for two major actions: (i) terminating the tenancy; and (ii) increasing rent by more than 10% within a 12‑month period

These notice periods apply even if the contract says otherwise. In other words, the statute overrides conflicting terms.

Month‑to‑Month Agreements:
For month‑to‑month tenants who qualify under the statute, the rules are straightforward:

• Termination of tenancy: 90 days’ written notice
• Rent increase of 10% or less: 30 days’ notice
• Rent increase of more than 10%: 90 days’ notice

This means landlords can no longer rely on shorter notice periods commonly found in older agreements. The law now sets the minimum.

90‑Day Term‑to‑Term Agreements:
Many churches and nonprofits use a 90‑day term‑to‑term license structure. At first glance, it might seem like the 90‑day term itself satisfies the law’s notice requirement—but SB 1103 works differently.

Under the statute:

• Ending a 90‑day term still requires 90 days’ written notice
• A landlord cannot simply choose not to renew at the end of a term without giving the statutory notice
• Rent increases follow the same 30‑day/90‑day rules as month‑to‑month agreements

In practice, this means the 90‑day cycle remains useful and compatible with the law, but landlords must be intentional about timing. A termination notice delivered too late may be legally ineffective.

Why It Matters:
SB 1103 introduces a new layer of predictability for small tenants—and a new layer of responsibility for landlords.

For churches and nonprofits:

• Most will qualify as protected tenants
• They must provide written certification to activate these protections
• They gain stronger notice rights for both termination and rent increases

For landlords:

• Compliance now requires tracking notice periods carefully
• Shorter contractual notice periods are no longer enforceable
• Failure to follow the statute can invalidate a termination or rent increase

The good news is that the 90‑day term‑to‑term structure already used by many ministries aligns naturally with the law’s timelines. With proper documentation and timely communication, both parties can operate smoothly within the new framework.

Note:
SB 1103 strengthens protections for small commercial tenants—including churches and nonprofits—by requiring longer notice periods for major changes. If a tenant qualifies, the landlord must provide 90 days’ written notice to terminate the tenancy or to raise rent by more than 10%, regardless of what the contract says.

For ministries, this means greater stability. For landlords, it means adjusting processes to ensure compliance. For both, it underscores the importance of clear communication and proper documentation.

Please see our other related articles

Abandoned Personal Property
Removing Fixtures
Commercial Leases

Disclaimer: Every situation is different and particular facts may vary thereby changing or altering a possible course of action or conclusion. The information contained herein is intended to be general in nature as laws vary between federal, state, counties, and municipalities and therefore may not apply to any given matter. This information is not intended to be legal advice or relied upon as a legal opinion, course of action, accounting, tax, or other professional services. You should consult the proper legal or professional advisor knowledgeable in the area that pertains to your particular situation.