Commercial real estate offers abundant opportunities for investors. However, commercial real estate comes with its share of challenges too, especially when dealing with problematic tenants.
California real estate laws outline specific circumstances and procedures for evicting a commercial tenant. Even so, an eviction is never a walk in the park. That said, here are three valid instances when you can lawfully evict a commercial tenant.
Failure to pay rent
As a commercial landlord, you have a duty to ensure that the rented property is safe and fit for use. The tenant, on the other hand, has a duty to pay rent on time as specified in the lease agreement. Of course, there are instances when the tenant may delay in paying their rent by a day or so – and this can be addressed without necessarily locking the tenant out.
However, a tenant who perennially delays rent payments, or does not pay rent at all, may be eligible for eviction on notice.
Failure to comply with non-financial responsibilities
When a tenant uses the commercial property for activities other than what the property is meant for (like operating an illegal enterprise), then they might be evicted from the property. A commercial tenant can also be evicted if they do not comply with other obligations specified in the lease contract.
Staying beyond the lease term
Every lease contract comes with a lease period. If the lease period runs out, both the landlord and the tenant may sign a new lease agreement with new terms. However, if a commercial tenant stays on the property beyond the stipulated lease period, they can be legally evicted from the property.
The relationship between the landlord and the tenant can be rocky if one or both parties fail to take up their obligations as outlined in the lease agreement. Find out how you can protect your rights and interests when evicting a commercial tenant in California.