If you own a business property, you can find yourself in an instance where you need to regain control of your property. The most frequent explanation for this is that your renter has broken the terms of the lease or their agreement with you. Included in this are neglecting to pay the rent, maintaining the property in good condition, or subletting the property without your consent.
You must take all necessary measures to ensure that you are able to recover your property as soon and smoothly as possible due to the delicate and difficult nature of this situation.
What Qualifies as Commercial Real Estate?
It’s important to clarify exactly what is categorised as commercial property before we move forward. This will assist you in determining whether commercial property attorneys are the best assistance for your situation.
The following are among the five types of commercial property:
- Retail – shops, shopping malls, and retail outlets
- Industrial – factories and warehouses
- Leisure – hotels, bars, eateries, cafés, and sporting venues
- Healthcare – hospitals, clinics, and nursing homes
Getting Control of Your Commercial Property Back
The process of “forfeiture” applies when you want to regain control of your property while a renter is still residing there. However, you may only terminate the lease on your property if you have complete legal justification. Your ability to act as a landlord will be considerably constrained if your leases lack any sections that grant you the authority to do so.
If you do have the option to forfeit, you have two options to consider:
If you choose this course of action, you can easily enter your property and change the locks to prevent the tenant from making further entries. This is a high-risk choice, though, as your tenant may certainly ask the court for “relief from forfeiture.” This implies that the tenant may reclaim possession and pursue damages for any losses sustained as a result of the unjust eviction. Please be aware that attempting to regain control through peaceful access is illegal if there is somebody on the property who objects. The only unit against which the right to peaceful re-entry may be used is one that is vacant.
Filing a possession petition with the court
The safer and more recommended option is this one. We advise you to think about this as a last resort because it can potentially be an expensive and drawn-out process.
Depending on the reason you must regain ownership of your property, you may choose a different course of action with your tenant.
Please be advised that retaking ownership of any property while there are people staying there is illegal and punishable by law. If a flat is included in the property’s lease and is located above a store, for instance.
What are the reasons to Evict a Commercial Tenant and What Steps to Take?
What are your business landlord rights? For many commercial property owners, it can be at times challenging to decide the best next steps to take to recover your properties. We’ve outlined the potential causes of eviction and the actions you should take in each case:
Failure to pay rent
You don’t need to offer any advance notice of your intention to take back the property if your commercial renter hasn’t been paying rent for the unit. You may just re-enter and regain. If you go with this option, you must NOT acknowledge the tenant’s continued tenancy as doing so could waive your rights to forfeit. We advise posting a notice of repossession sign on the building’s door and inviting your commercial property attorney to the scene as a witness in order to make sure that your decision to evict your tenant is acknowledged.
Breach of the lease’s terms
If a tenant violates the terms of the business lease, you must give them a 146 notice before you can take back ownership of the property. Your commercial real estate attorney must provide this notice to all parties involved, including the renter, subtenant, and mortgage company. The nature of the breach and any further requirements, such as corrective measures or compensation, must be specifically stated in this notice.
Violation of the repair obligation
You might be required to give the renter a chance to seek statutory protection in certain situations linked to this issue. The tenant has 28 days following receipt of the 146 notice to assert this right if they choose to do so. Then, before taking any further action, the landlord must file an initial claim with the court to obtain approval.
The landlord files a possession request with the county court to start the court process. Claim forms must be filled up and submitted by the landlord, after which the tenant must receive notice, typically from your business property lawyer. The renter will have a particular period of time in which to comply with the notice’s requirements.
How Much Time Does it Take to Evict a Commercial Tenant?
If you find yourself in a position of needing to evict your current tenants, it’s likely that you want to get the process started right away. The process of evicting a business renter might take a long time, depending on your particular situation and the steps you decide to follow.
This could take up to two days if you just choose to re-enter the property and replace the locks. However, it can take much longer if the case gets to court. No matter how long the procedure may take, At SGT Law Firm, it is our responsibility as top business property Solicitors to make sure you are supported.
How to Evict a Commercial Tenant without a Lease in the UK
It is not recommended to rent out your commercial property without a lease. This is so because no conditions or agreements that would make them legally binding have been stated. A verbal or oral lease is one in which there is no formal agreement between the parties but the renter is renting out your commercial property. Once more, enforcing those terms in the event of a dispute is challenging.
Having a formal, written contract in place is very important. A lawyer can assist you with this to make sure your contract is strong, clear, and concise so it will protect you in the event of any eviction concerns.
Even if there is no lease agreement, you still have grounds to remove your business tenant. However, given how much more difficult the process is, we advise leaving it in the hands of a Solicitor with experience in commercial real estate like SGT Law Firm.
Can a Commercial Landlord have the right to evict a Tenant?
Yes, a commercial landlord technically has the right to evict a tenant through “peaceable re-entry,” which involves the landlord going inside the rental unit and changing the locks.
Once the tenant has gone a predetermined number of days without making any sort of rent payment, this option may be considered.
There are certain risks involved with this method, therefore it is important to carefully examine if it is the right course of action for you. It might be preferable to take legal action instead.
Contact a Commercial Property Lawyer Now
The Commercial Property and Property Litigation department at SGT Law Firm offers a variety of legal expertise to help you make the most of the property you own, including evicting a commercial tenant, whether you are a landlord of one or numerous commercial properties. To learn how we can support you during the eviction process, contact our team right now.