Legal Advice During Challenging Times

When can a commercial tenant be evicted? 

On Behalf of | Jun 23, 2024 | Real Estate Law |

Renting out a piece of commercial real estate can be lucrative. Nonetheless, this will largely depend on the type of tenant you obtain. 

Unfortunately, commercial tenants do not always work out, and it may be necessary to evict a tenant from the property. Here are some of the key reasons this may be necessary. 

If the tenant does not keep up with payments

You and the tenant most likely negotiated a fair rental price for the property. This price should allow both parties to turn a profit. Once a price has been agreed, this can be included in the commercial lease agreement. You can also include periodic rent rises in this contract if required. 

If a tenant does not pay the agreed amount, then this is a breach of contract. You may have valid grounds to evict the tenant on this basis.

When there are other contractual breaches

Most commercial evictions stem from contract breaches. Minor contract breaches may be resolved more easily, but major contract breaches may leave no option but to evict the tenant. 

An example of a major contract breach would be if the tenant uses the property for purposes that were not agreed upon. For example, the tenant may use the property for unlawful activities. Or, the tenant may sublease parts of the building without seeking prior permission.

If you are looking to evict a commercial tenant, then it’s important to follow all of the appropriate steps. By first seeking legal guidance, you give yourself the best chance of adhering to the law when conducting an eviction.