How to avoid a tenant absconding

Tracing

If you think your commercial tenant is having financial difficulties, or they've uncharacteristically fallen behind in rent, you could be at risk of tenant abandonment. While there are tracing services to find debtors, it's best to avoid the situation in the first place – here's what to do if you're concerned.  

Discuss it with them

Losing out on rent is stressful, but remember your tenant is having a hard time too. They probably feel embarrassed and anxious, so be sympathetic to bring them back on-side instead of driving them away. Get in touch with them to ask if everything is okay and what you can do to help – for example, you might consider lowering rent for a few months while they get back on their feet. If necessary, use a professional mediation service to find a solution that works for everybody.

Look into their finances

If your tenant isn't open to discussion and is pretending nothing's wrong, it's worth doing some further investigation. Check how their business is coping – are they doing well, or simply scraping by? If your commercial tenant is on the brink of bankruptcy, bringing a court order against them is unlikely to result in you getting your money back. Having evidence that they're struggling might also help you to engage them in conversation.

Consider forfeiture

If you're worried about tenant abscondment, you are entitled to act before your tenant can disappear by ending their lease early using the forfeiture clause of their commercial lease. This gives you the option to take back the property if your tenant has breached their contract by not paying rent. It is extreme – only do it if you're happy to lose the tenant and risk the property sitting empty. It's also worth bearing in mind that your tenant can make a court appeal for relief from forfeiture, which could result in their lease being reinstated.

If you've gone through all that and your tenant disappears, it's time to call in the experts. Your early research will make the debtor tracing process easier, as you've probably already spoken to their friends and family. For help and advice on tracing people, speak to Dukes Bailiffs – with over 26 years' experience, our team can help to find your rogue tenant.