Evicting a commercial tenant isn’t something most landlords want to do. Usually, there’s been a problem building for a while before it gets to that stage. Rent hasn’t been paid, promises haven’t been kept, or something else in the lease has been ignored. A few conversations may already have taken place without really getting anywhere.
Eventually, though, there comes a point where getting the property back becomes the most sensible option.
So, how does a commercial eviction actually work?
Start With the Lease
Before doing anything else, go back to the lease. It should explain what both landlord and tenant agreed to at the start of the tenancy, including what happens if those terms are broken. Importantly, it may also contain a forfeiture clause giving the landlord the right to bring the lease to an end in certain circumstances.
Non-payment of rent is probably the most familiar reason for taking action, but it isn’t the only one. A tenant might be using the premises for something that isn’t allowed, have abandoned the property, become insolvent or broken another condition of the agreement.
Exactly what you can do next will depend on what has happened and what the lease says.
Does It Need to End in Eviction?
Not necessarily… where possible, most landlords will first try to understand what’s gone wrong. If a tenant has always paid on time and suddenly misses a payment, for example, a conversation might be all that’s needed.
It becomes different when the same problems keep coming back.
If rent arrears continue to grow, communication disappears or another breach isn’t being put right, waiting indefinitely isn’t much of a solution either. At that point, landlords can start looking at the formal routes available to regain possession.
Serving the Right Notice
The next step can involve serving notice on the tenant, although exactly what is required depends on why the landlord wants the lease to end.
Where there has been a breach unrelated to rent, a Section 146 notice may be required before forfeiture can take place. Other circumstances have different requirements, which is why it’s important not to assume every commercial eviction follows exactly the same route.
Getting this part wrong can cause problems further down the line.
Peaceable Re-Entry
One option you may have heard about is peaceable re-entry.
Where the lease allows it and the circumstances are right, the landlord can regain possession of the premises and have the locks changed while the tenant isn’t there.
Despite the name, this isn’t simply a case of turning up with a locksmith.
There are rules around how it can be done, and avoiding any possibility of confrontation is important. A notice is normally left prominently at the premises confirming that possession has been taken and the locks changed.
It also isn’t suitable for every property. If any part of the premises is residential, such as a flat above a shop included within the same tenancy, different protections apply and the landlord may need to go through the courts instead.
Going Through the Courts
Sometimes a possession order is the better route. It takes longer than peaceable re-entry, but where there’s a disagreement about the lease, the tenant disputes the landlord’s position or there’s a risk of confrontation, having the matter dealt with through the court can provide greater certainty.
If possession is granted and the tenant still refuses to leave, bailiffs or enforcement officers can then become involved.
Getting the Property Back
Commercial eviction can be relatively straightforward in some cases and much more complicated in others. The reason for eviction, wording of the lease and type of premises can all change what happens next.
At Churchill Recovery Solutions, we deal with landlords who have often spent weeks or months trying to resolve matters themselves before deciding enough is enough.
By that stage, getting the property back is usually the priority. The important thing is making sure it’s done properly, rather than turning one difficult situation into another.