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When can a commercial lease contract be terminated?

On Behalf of | Jun 13, 2022 | Real Estate Law |

A commercial lease agreement binds the business and the landlord during the lease period. The term “commercial” means that the tenant shall use the rented property for business rather than residential purposes.

However, there are times when the landlord may want to vacate the agreement before its designated expiry. Here are instances when the landlord can vacate a commercial lease contract and evict the tenant from the property:

Failure to pay rent

Every lease agreement stipulates the rent amount as well as when and how that rent should be paid. If the tenant fails to pay rent or is habitually late in paying their rent, then the landlord may have reason to terminate the lease contract. Most often, the landlord will need to send out a “pay or quit” notice to serve as a warning before evicting the tenant.

Lease violation

The landlord may also terminate the contract and evict the tenant if they violate the lease agreement. This may include sub-letting the rented space without prior consultation and signing of a sublease clause, using the premises for purposes not included in the lease contract or using the premises for illegal activities.

Damage to the property

Of course, it is not unusual for an occupied property to go through wear and tear. However, it becomes a totally different story when the tenant engages in destructive activities that go beyond normal use. For instance, a tenant who carries out a major remodeling of the property to suit their business goals without prior consultation with the landlord may be deemed destructive.

A commercial lease agreement is signed to create order while protecting both parties. Find out how you can safeguard your rights and interests if the other party is not living up to the terms of the commercial lease agreement.