Negotiating a commercial lease usually means that a landlord can expect multiple years of reliable rental revenue. Commercial leases typically last longer than residential leases at a higher rate per square foot. Tenants also share maintenance responsibilities with a landlord or pay for maintenance and repair services, unlike residential tenants.
Unfortunately, as is sometimes the case with residential tenancies, commercial tenants do not always fulfill their contractual obligations. They fall behind on rent or violate restrictions included in the lease. Their conduct can damage the property or impact the businesses of other tenants. Much like residential landlords, commercial landlords sometimes decide that a lockout or eviction is the best response to the conduct of a tenant.
How can commercial landlords prepare for a lockout or eviction?
Documenting their justification
Eviction is typically only possible when a landlord has a valid reason under the written lease agreement to remove the tenant. Non-payment of rent or other fees could lead to eviction or lockout. Often, the lease is written so that the violation of lease terms, such as by engaging in prohibited business activities, is also an offense that triggers a landlord's right to lockout or evict.
Breaking the law at a commercial property or damaging the unit could also be grounds for eviction, depending on the language of the lease agreement. Holdover tenancies where tenants refuse to sign a lease renewal but do not leave at the end of a lease may also require an eviction to resolve.
Photographs of damage, copies of communication with the tenant and witness statements affirming the problematic activity helps landlords enforce their rights and justify an eviction. Landlords generally need documentation for an eviction or lockout.
Learning about the process
Evictions and lockouts can be relatively complex. While there are fewer governmental restrictions on commercial evictions and lockouts than there are on residential evictions, landlords must always need to ensure their compliance with the law and with their own lease documents.
They may need to consult an attorney to discuss the situation. Proper legal support can prove invaluable as landlords review lease documents, consider the applicable laws, and prepare to take action such as filing an eviction proceeding in court. With the right approach, landlords can reduce the time and expense of a lockout or eviction process and streamline the effort to end the tenancy as quickly as possible.
Commercial landlords often need help resolving their issues with problem tenants. Preparing in advance before attempting to lock a commercial tenant out or evict them can help landlords avoid missteps and protect their real estate investment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
