How might a tenant breach a commercial lease?
Examples of ways a tenant might breach a commercial lease agreement include:
- Failing to maintain, repair or insure a property as specified in the Lease.
- Making alterations to the property without permission from the landlord.
- Sharing or subletting the property without the landlord’s permission.
- Assigning a lease without the landlord’s permission.
How can a landlord deal with difficult commercial tenants?
If a tenant breaches the terms of a lease agreement, a landlord may claim possession of their property with a Section 146 notice, also known as ‘forfeiture’.
When a tenant has failed to pay rent, the forfeiture process does not have to be followed. A landlord can simply enter the premises after a specified period and change the locks. However, if you are a landlord considering this route, it is important to seek advice from a solicitor as this action is risky, and there can be legal consequences.
Where a Section 146 notice is served, a tenant will be given a reasonable time period to put the breach right and pay any compensation due to the landlord. If the tenant fails to remedy the breach, then the landlord can start eviction proceedings through the court.
How long does it take to evict a commercial tenant?
The length of time it takes to evict a commercial tenant depends on the route taken. If locks are changed, it can take just days. If the matter goes to court, it can take several months.
What are a tenant’s rights under forfeiture?
Tenants have the right to apply for ‘relief from forfeiture’ if forfeiture should not have taken place. In this case, they may also be able to claim compensation from the landlord. The aim of compensation is to put the tenant back into the position they would have been in if forfeiture had not happened.
They can, in some cases, also apply for relief from forfeiture if they have remedied the breach.