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Evicting a Commercial Tenant for Rent Delinquency

 Posted on December 00, 0000 in Commercial Lease Agreements

Naperville commercial eviction lawyerBusiness owners of all types can experience a drop in sales and fall behind on their bills. Unfortunately, when this happens, it can leave the landlord in a difficult predicament. On the one hand, commercial property owners know it is usually easier to keep a current tenant than it is to find a new one, so they may be willing to wait out a slow season for a delinquent commercial tenant.

On the other hand, the lack of payment can cut into the investor's profits, perhaps to the point that it places them at risk for financial problems themselves. As such, it is important that investors not only understand the eviction process for a commercial tenant who is behind on their rent, but that they also carefully consider their options before moving forward with the process.

Should You Evict Your Commercial Tenant? 

While, ultimately, only you can decide whether eviction is the most appropriate step for any given situation, there are some things that you might want to consider before moving forward with the eviction process. These can include the:

  • Tenant's payment and rental history;
  • Term of the tenant's lease;
  • Current length of the tenancy;
  • Cost of any repairs or upgrades that need to be made;
  • Local economy (particularly in areas experiencing a downturn or seasonal lag);
  • Length of time the property may go unoccupied, if the eviction takes place;
  • Pool of prospective tenants, should the eviction take place; and
  • Nature of the tenant's business (i.e. a seasonal company may recover in the next quarter).

Regardless of what you end up deciding, there are some steps that should be taken to reduce your risk of financial loss and future complications. First and foremost, it is advised that you seek the guidance and assistance of a seasoned commercial real estate attorney.

Starting the Commercial Tenant Eviction Process

Evicting a commercial tenant is different than evicting a residential one. First, the process is far more complex. Second, the process can vary, based upon the type of business occupying the space. Lastly, if you make a misstep in the commercial tenancy eviction process, you risk a significant loss of financial resources and possible damage to your reputation.

Due to the high risks and complex legal steps involved, commercial landlords are advised to consult with an attorney before taking any form of action against a delinquent commercial tenant. Not only does this reduce the risk of a mistake, but it can also help the investor make a decision based upon business needs, rather than emotional ties that may be present.

While waiting for an appointment with your lawyer, provide the tenant with notice of their defaulted payment, as this starts the clock on the eviction process. It is also important to know that you should never accept a partial rental payment from a commercial tenant - especially if they are delinquent - as the courts may consider this a good faith payment, which could bring the entire eviction process to a halt.

Contact Our Naperville Commercial Landlord Attorneys

If you are dealing with a delinquent commercial tenant and are uncertain of how to proceed, contact Lindell & Tessitore, P.C. for skilled guidance and assistance. As one of the most trusted real estate firms in the state, our Naperville commercial eviction attorneys can protect your business interests, every step of the way. Call 630-778-3818 today.




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