Can a Landlord Evict a Commercial Tenant Before the Lease Ends?

An individual occupying the commercial space who fails to pay the rent or does not follow the requirements of the lease agreement can become a source of serious problems for the owner of the property. However, just because a landlord wants the tenant out does not necessarily mean that they have the right to terminate the agreement prematurely. Commercial tenant eviction involves the nature of the agreement, the cause for its termination, and following all the required legal steps.

Rushing into action can lead to the landlord being involved in unnecessary disputes and facing additional expenses. Some considerations need to be taken into account.

When Can a Landlord Evict a Commercial Tenant Early?

Generally, landlords may end a commercial lease prior to its expiry provided that there is a valid cause to do so. Breach of the contract by the tenant should allow the landlord to do so legally. The terms of the lease have to be considered in advance of taking any action. Conditions under which the termination may occur are usually as follows:

●       Failure to pay the rent as specified in the lease terms.

●       Breach of the contract conditions, including misuse of property.

●       Unauthorised alteration of property.

Not all the breach of the contract allows a landlord to terminate it. The terms of the lease have to be taken into account.

What Is the Impact of a Forfeiture Clause on the Eviction Procedure?

A forfeiture clause means that the landlord will have the right to terminate the contract when certain conditions are met. If the landlord does not have such a right to forfeit the contract due to certain conditions, then he cannot expect the lease to be terminated upon a breach of any terms.

It would be advisable to determine whether the right of forfeiture exists and whether the landlord still has the right to use this right to terminate the tenancy prior to taking steps to evict the commercial tenant.

Does a Landlord Have Reasonable Basis to Evict a Tenant Apart from Non-Payment of Rent Arrears?

Yes, there is an opportunity for a landlord to have reason to evict a tenant apart from not paying rent arrears, especially in the case of commercial leases. However, depending on the extent to which a particular breach has occurred, the landlord will need to follow a certain process for commercial tenant eviction.

Examples of such cases may be when the tenant sublets without seeking consent from the landlord, fails in repair obligations on a regular basis, or uses the property for any prohibited purpose.

What Should Landlords Do Legally Prior to Eviction?

It would be prudent for landlords not to resort to changing locks, stripping the property, and other actions without first confirming that it is legally possible to take such action. It would depend on the provisions of the lease agreement, the breach, and whether the property is currently occupied. It is advisable for the landlord to:

●       Check the lease agreement: Know the provisions for termination of the lease and the duties of the tenant.

●       Document the breach: Keep all records related to the rent, communication, and inspection.

●       Give notice: Follow all legal and contract terms.

●       Review the response: See whether the tenant has addressed the issue and has a legitimate defence.

The landlord should see if the tenant can get relief from forfeiture from the court of law.

Conclusion: Do It the Legal Way

A landlord can terminate a commercial tenancy contract before its expiration date, but this action should be done based on a legitimate cause. Eviction of commercial tenants involves several considerations in relation to the contract, the reason for breach, notices, and the possession process.

Landlords should take note of any issues and refrain from taking actions that may jeopardise their legal position. For expert advice on commercial tenant eviction, contact First 4 Landlord Advice Ltd and discuss your best possible step towards the tenant.