Tenants rights: how to repossess property from a tenant in trouble
Evicting a Tenant
With the high street struggling and political uncertainty affecting businesses across the board, landlords need to know how to reclaim property in delicate circumstances. Whether your commercial tenant is in financial trouble, heading towards insolvency or approaching lease renewal, read on to find out about your options.
Financial concerns require sensitivity
As a landlord, your right to forfeiture always requires proof that a commercial tenant is in breach of their lease. Tenants must have missed a specified payment date or, if this detail isn’t included in your lease document, you’ll need to establish that they are deliberately withholding or are unable to pay their rent.
Usually, this is done by contacting your tenant, informing them of the missed payment and trying to agree on a repayment schedule. This process can also be done by a mediator, like a certificated enforcement agent. Only once tenants are shown to be unresponsive or evasive can you instruct your enforcement agent to apply for a warrant to forfeit and issue a tenant-eviction notice. If the tenant fails to pay some or all of the unpaid rent, the eviction process begins.
Insolvency is more complicated
If your tenant has already entered insolvency – also known as bankruptcy or administration – your enforcement agent must get permission from the court, or consent from the administrator, before a lease is forfeit and the eviction process can begin. In such cases, it’s often far more time-consuming to regain control of your property. That’s why it's generally advisable to enter discussions with struggling clients before they reach this point.
Lease renewal presents an opportunity for change
Companies like Primark hit the headlines for renegotiating their tenancy agreements to cut their costs and avoid financial trouble. While this may seem tough, such negotiations can present an opportunity to come to a mutually beneficial agreement.
If an agreement isn’t possible, remember that the termination of a lease allows you to reclaim control of your property, so cancelling your contract by mutual consent is always an option. This opens up fresh avenues for you, from seeking new tenants to converting or selling your property.
For further information about tenant’s rights, or help with a tenant-eviction notice, contact Dukes Bailiffs today.
