In theory, renting commercial property out to businesses is a more predictable undertaking than renting homes to individuals. Businesses often commit to multi-year leases and may pay more per square foot than residential tenants.
Additionally, because the tenant does not live in the space, the landlord has more opportunities to inspect the property for damage and fewer restrictions if they have to take legal action to remove the tenants. Even so, evicting a commercial tenant can be a very difficult process.
Some landlords find themselves dealing with unpaid rent, inappropriate tenant conduct or damage to a rental unit. An eviction may be the only way to handle a problem tenant who won’t abide by the terms of their lease.
What do commercial landlords typically need to know about removing a business tenant from a rented space?
The situation must warrant an eviction
As is the case in scenarios involving individuals renting houses, evictions targeting commercial tenants typically require specific grounds. Frequently, landlords decide to remove business tenants after they fall behind on rent payments. They usually have to provide at least three days’ notice before taking action to evict a commercial tenant for a failure to pay rent. Such evictions can move more quickly than residential evictions for the same reason.
Landlords may also choose to remove commercial tenants because they have violated the law by operating an inappropriate business. Other times, the reason for the eviction could be damage to the premises or a failure to maintain the facilities. Landlords typically need to document the circumstances that force them to take legal action.
They have to serve notice to the commercial tenant. They may then need to secure a hearing in the civil courts unless the tenant leaves voluntarily. Evictions can take weeks to complete in most cases and can sometimes take longer than that due to the number of pending cases in the local courts or the tenant trying to prevent the eviction.
Those who own and rent out commercial space are subject to vastly different laws than those renting residential properties. The rules for everything from the lease and the security deposit to the eviction process are different. Ultimately, following the right procedures is crucial to a successful commercial eviction. Landlords may need help reviewing a lease and following the right legal process to remove a problem tenant from a commercial facility. Seeking legal guidance proactively is, therefore, generally wise.