Experienced. Dedicated. Result-Driven.

  1. Home
  2.  • 
  3. Commercial Real Estate
  4.  • 3 reasons commercial landlords may decide to evict tenants

3 reasons commercial landlords may decide to evict tenants

Discussions of evictions often focus on residential properties. After all, stories about people losing their houses unexpectedly tend to tug at people’s heartstrings. However, individuals looking for housing aren’t the only people who sign leases.

Those starting and running businesses also sign leases to secure commercial facilities. In theory, a commercial lease can be a cost-effective solution for business leadership in need of office or retail space. Commercial leases can also be a source of predictable revenue for property owners.

Unfortunately, business tenants can violate leases and fall into financial arrears just like any residential tenant might. Commercial landlords do sometimes need to evict business tenants from their facilities. What are some of the legal justifications for evicting a commercial tenant?

Failing to pay rent and fees

Commercial leases often include a base rental rate and numerous additional monthly fees. Landlords frequently perform some degree of facility maintenance and charge for those services. When tenants fall behind on rent or their contribution toward maintenance costs, commercial landlords may need to initiate eviction proceedings. Doing so can allow them to free up the space and bring in a paying tenant.

Damaging the commercial space

There are countless ways in which a commercial tenant could damage the facilities they rent. In some cases, landlords expect a degree of damage and basically hold tenants accountable via security deposits and maintenance or repair fees. Other times, the damage is serious enough to warrant a landlord’s immediate intervention. Particularly in scenarios where tenants cause serious damage and do not make timely repairs, an eviction can help prevent worsening damage to a valuable commercial facility.

Violations of the lease

Perhaps the lease limits who has access to the space, possibly by prohibiting on-site customer or client visits. Maybe the tenant advises the landlord that they intend to conduct one type of business but then change their plans during their tenancy. The landlord might even discover illegal activity occurring at the rental space. Commercial landlords sometimes need to evict their tenants because of significant lease violations.

Any eviction proceedings typically require thorough evidence of a tenant’s conduct or failure to pay. The process in some ways can be simpler than residential evictions because there are fewer laws protecting commercial tenants. However, the process can also be more complicated due to contractual complexity and a host of other concerns. Having assistance when dealing with a commercial lease issue can take a lot of pressure off of landlords. The decision to evict a commercial tenant is never easy to make but is sometimes the best solution.