Commercial leases typically provide stable arrangements for both landlords and business tenants. Commercial leases generally last multiple years, allowing tenants to lock in commercial space and landlords to maintain predictable income.
Ideally, both parties uphold the terms of the lease consistently and maintain an amicable relationship with one another. Unfortunately, a variety of situations can damage the dynamic between a business tenant and a commercial landlord. In serious situations, landlords may have the legal option of evicting a problematic tenant.
What circumstances can potentially allow for the lawful eviction of a business tenant when there may be months or years left on their lease?
1. Unpaid rent and fees
Commercial tenants have the same monthly rental obligations as anyone else leasing a space. In addition to base rent, they may also need to pay fees related to maintenance and repairs. Even if a tenant is up to date on their rent, they may have fallen behind on common area maintenance (CAM) fees. They may have failed to carry mandatory insurance required as a term of their lease. In cases involving a triple net lease where the tenant assumes responsibility for taxes, unpaid property taxes could also provide legal justification for an eviction.
2. Lease violations
Commercial leases often impose a number of limitations on tenants. In some cases, there may be restrictions on how they use the property. Other times, there might be rules regarding the number of employees they have or whether customers can physically come to the property. In scenarios where landlords have clear documentation that tenants have violated the terms of a lease, those violations can justify an eviction before the lease ends.
3. Property damage or maintenance failures
Sometimes, business tenants fail to properly maintain their equipment or train their workers. Incidents in a commercial space could lead to structural damage or issues with major systems within the building. Other times, the tenant may not directly damage the building, but they may fail to fulfill obligations related to property maintenance and repairs. In scenarios where tenants have damaged the property or failed to keep it in appropriate condition, landlords can remove them.
Reviewing a lease with a skilled legal team, and documenting tenant conduct, are both typically key steps when landlords intend to evict problem business tenants. Commercial landlords who have the support of legal professionals may have an easier time removing and replacing problem tenants.