It’s a scenario that most commercial landlords dread but it’s one that’s all too common. Your tenant starts off well and pays their rent on time but things start to slip and before too long they are in arrears. What do you do?
If you have a property manager looking after your commercial property they will take care of the situation, but if you’re doing it yourself it gets more tricky. There are certain processes that must be followed when a tenant doesn’t pay his or her rent, otherwise you could end up facing further legal issues.
The laws governing non-payment of rent by commercial tenants are governed by the state so you will need to look up the laws in your particular area to be sure you are legally compliant. As a general rule there will be a certain number of days your tenant has to be overdue before you can issue them with a breach of lease notice. This will also depend on the terms laid out in your lease.
You may also be required to give the tenant the opportunity to remedy the breach and pay their rent before you can re-enter the property or ask them to leave. Make sure you seek appropriate legal advice and provide everything in writing so there is a record. This will help cover you against any potential legal action by a tenant in the event of a dispute.
If your commercial tenant is late paying their rent, it’s important that you don’t ignore the problem. Speak to them and take steps to remedy the situation sooner rather than later as the longer it continues, the harder it will be to find a solution.
For advice about what to do in tenant disputes or to get professional help managing your commercial tenants and property, speak to an experienced commercial property manager today.