Commercial tenancies can provide multiple years of predictable income for a commercial landlord. Most commercial leases last between three and five years, which means there are multiple years of predictable income for a landlord.
Unfortunately, there’s no guarantee of the tenant fulfilling their responsibilities. Sometimes, landlords have to take legal action because their tenants fail to pay rent and conform to the standards established in the commercial lease. They can cost a landlord money by misusing the space and failing to pay what they should in a timely manner.
Evictions can be lengthy and frustrating experiences for both tenants and commercial landlords. Landlords typically prefer to avoid evictions whenever possible. Yet, they are sometimes necessary. The following are some of the most common reasons that landlords have to remove a business from a commercial space.
Unpaid rent
Perhaps the most common reason for commercial evictions is the failure of the tenant to consistently pay their rent on time. In some cases, they might pay the rent but not the secondary maintenance fees included in the lease. Landlords can initiate eviction proceedings for both unpaid rent and any fees included in the lease if the tenant falls significantly behind on their obligations.
Inappropriate tenant behavior
Sometimes, tenants misrepresent what the business may do with the space. They may change their business plan after signing the lease because the original business model isn’t profitable. Leases might include restrictions on the type of business the company conducts or how much traffic they have in and out of the space. Any tenant conduct that violates restrictions imposed in the lease documents might lead to an eviction, especially if their activity increases the wear on the unit or puts the landlord at risk of legal action because the tenant has violated the law.
Damage to the unit
Commercial tenants often have an obligation to perform some maintenance and repairs to the facilities they rent. Even if the landlord accepts all maintenance obligations, the tenant is responsible for keeping the unit clean, notifying the landlord of issues and avoiding intentional damage to the space. If a landlord sees worrying signs of extensive damage either caused by the tenant or left unreported, they may need to evict the tenant to prevent worse damage to the unit and repair it as necessary. Frequently, landlords may also need to retain part or all of the security deposit when evicting a tenant due to unpaid rent or damage to the unit.
Reviewing the lease and issues with the tenant with a skilled legal team can help a commercial landlord determine the best response to a frustrating situation. Evictions and litigation seeking compensation from tenants are often the last options available when a tenant has not responded to attempts to resolve concerns amicably.