Can you evict a commercial tenant for not paying rent?
Commercial properties offer landlords a steady income stream, but what happens when a tenant fails to pay rent? The process for eviction differs significantly between residential and commercial tenancies.
Key Differences Between Residential and Commercial Eviction
- Legislation: Residential tenancies are governed by the Housing Act 1988, while commercial leases fall under common law principles and the specific terms of the lease agreement.
- Security of Tenure: Residential tenants in the UK often have greater security of tenure, making eviction a more complex process. Commercial leases typically offer less protection.
- Notice Periods: Notice periods for eviction in commercial tenancies can be shorter than those required for residential properties.
Evicting a commercial tenant for non-payment of rent
There are two main routes for evicting a commercial tenant who hasn’t paid rent:
- Forfeiture: If the lease agreement includes a forfeiture clause, it allows you to re-enter the property and terminate the lease if rent remains unpaid beyond a specified period. However, strict procedures must be followed to avoid claims of wrongful forfeiture.
- Commercial Rent Arrears Recovery (CRAR): This statutory procedure allows you to instruct certified enforcement agents to seize a tenant’s goods on the premises and sell them to recover unpaid rent. There are specific requirements for using CRAR, including a written lease and a minimum amount of overdue rent.
Seeking Professional Advice is Crucial
Commercial property disputes can be complex. Involving a solicitor with expertise in commercial landlord and tenant law is essential. They can advise you on the most appropriate course of action, ensure you comply with legal procedures, and protect your rights throughout the process.
LegalforLandlords: Your Partner in Commercial Property
Our specialist Commercial Property team boasts extensive experience in dealing with commercial lease matters, including rent arrears and eviction. We offer a range of services to support you, including:
- Drafting and serving Section 146 notices (pre-action notices for breach of lease)
- Drafting and issuing relevant legal notices and letters
- Reviewing notices issued by the tenant
- Initiating forfeiture proceedings
- Recovering debts and rent arrears
- Re-entry of the premises by a High Court Enforcement Officer (HCEO)
We understand the importance of clear communication and cost-effective solutions. Our team will work closely with you throughout the process, keeping you informed and ensuring the best possible outcome for your situation.
Book your free consultation today
If you are facing issues with a commercial tenant who is not paying rent, contact LegalforLandlords today. We offer a free consultation to discuss your situation and advise on the most effective course of action.
