A commercial lease allows a landlord who owns industrial, retail or mixed-use space to profit off of their holdings. They collect rent and possibly maintenance fees from tenants. Commercial leases often last for multiple years, limiting how much time and energy landlords must commit to marketing for new tenants and facility maintenance in between tenants.
Ideally, business tenants are also more consistent about making payments on time, as they require commercial space if they want to continue operating. Unfortunately, not all business tenants uphold their obligations under a lease. In some cases, commercial landlords may find themselves hoping to terminate a rental agreement through eviction.
1. Unpaid rent
One of the most common reasons for eviction is a tenant’s failure to pay rent in full and on time. In commercial lease scenarios, there may also be maintenance fees to consider. A struggling business may not have the necessary revenue to make monthly rent payments. Unlike residential evictions, which include numerous protections for people who could end up homeless, commercial evictions based on non-payment can be a relatively straightforward process.
2. Post-lease holdovers
Many leases include language that allows tenants to remain at a property on a month-to-month basis when the lease ends. In some cases, landlords expect to renegotiate with the tenant and come to new terms at the end of a lease. In scenarios where tenants do not reaffirm their commitment to the space and instead try to remain in the property on a month-to-month basis, the landlord may be able to evict them because the lease period has technically ended.
3. Inappropriate business activities
Some businesses are legal fronts for illegal activities. People run cash-heavy business operations as a way to launder ill-gotten funds from illicit activities. Other times, when a business proves unprofitable, the owner might dabble in other business opportunities. They may have leased the space as a retail facility but may start offering on-site repairs.
Changes in business operations can influence the risks for the landlord. In some cases, they could end up implicated in illegal activity. Other times, the change in business functions could cause more damage to the unit over time or put more strain on shared resources, including a parking lot that services multiple units. Landlords may include provisions in their leases that limit tenants to certain business functions and can evict them for violating those clauses.
Damage to the property and conduct that makes a tenant a nuisance to others nearby could also potentially warrant a commercial eviction. Landlords preparing for a commercial tenant eviction typically need help with that process. Securing assistance before beginning eviction proceedings can streamline the process and increase the landlord’s chances of successfully removing a tenant.