Rules around eviction from commercial property

Eviction from commercial property in the United Kingdom is quite a complex process that can be difficult to negotiate. It’s governed by a distinct legal framework compared to residential tenancies, so landlords and commercial tenants must understand the eviction process rules.  

This comprehensive guide will outline the key legislation, explain how to follow the strict commercial eviction notice period and offer practical advice for commercial landlords.

Understanding the legal framework around eviction from commercial property

The eviction process for commercial tenants is governed by key legislation such as the Landlord and Tenant Act 1954. This legislation provides commercial tenants with security of tenure, meaning they have the right to renew their lease at the end of its term, subject to certain conditions such as paying rent on time and fulfilling the tenancy agreement. 

Security of tenure is important for commercial tenants because their business often relies on the property they rent. It could be a warehouse or even a shop on the high street, and moving could have serious consequences. Commercial landlords can exclude security of tenure, but they must put this in the tenancy agreement, communicate it clearly and follow the correct process. 

While landlords must be mindful of the security of tenure, they can still terminate a lease and pursue eviction as long as they follow strict guidelines. 

How long is the commercial eviction notice period?

Landlords must give tenants at least three months’ notice before the original lease term expires to complete the eviction from commercial property correctly. When a fixed-tenancy end date has already passed, and a tenant is paying their rent in full and using the premises for business reasons, they have the right to remain in the property until the landlord provides them with a new lease or serves them with a section 25 notice for possession. If that is the case, landlords must provide a six to twelve-month commercial eviction notice period.

Reasons for eviction from commercial property

A landlord can only start the eviction from commercial property based on certain grounds highlighted in the lease agreement or the Landlord and Tenant Act 1954. Some of the most common reasons include:

• Missing rent payments: Persistent failure to pay rent is one of the most frequent triggers for eviction. Landlords must provide evidence of missed payments and follow the correct notice procedures before pursuing eviction.
• Breach of lease terms: This can include unauthorised subletting, failure to maintain the property, or using the premises for purposes not permitted under the lease. Landlords should document this to help build a strong legal case.
• Landlord’s intention to redevelop or occupy: Landlords may decide they want to redevelop or occupy the property for their own business. They can do this under the Landlord and Tenant Act 1954, but must provide compelling evidence to support these claims.

Evictions often require formal court proceedings, particularly if the tenant disputes the grounds for eviction. Therefore, landlords must clearly document payment records and conversations with the tenant, regardless of the reason behind the intended eviction. 

They will need to have evidence of the lease breaches (if applicable) that support the eviction actions. These documents will help the landlord during court proceedings and help avoid further problems during the eviction process for commercial tenants.

The eviction process for commercial tenants 

The commercial property eviction process is complex. Landlords need to be careful and follow a process to ensure everything is as smooth as it possibly can be. Below is a rough overview of the typical process landlords follow when evicting commercial tenants.

Reviewing the lease agreement

Before starting the eviction from commercial property, landlords need to read the lease agreement carefully. This will allow them to confirm whether or not the tenant has breached any of its terms. Some of the more common breaches are in the list above. The lease will also specify the notice periods and procedures for termination, which must align with statutory requirements.

Serving the commercial eviction notice

Landlords must serve a formal commercial eviction notice, often under Section 25 of the Landlord and Tenant Act 1954. The notice must clearly state the grounds for eviction and provide the tenant with a reasonable period to respond or rectify the issue.

Possible court proceedings

If the tenant does not vacate the property after the notice period or disputes the eviction, landlords may need to apply for a court order. The court will assess whether the grounds for eviction are valid and whether the landlord has followed the correct procedures. Thorough documentation, including copies of the lease, notices served, and evidence of the tenant’s breach, is super important at this stage.

Enforcing the ruling

If the court grants an eviction order and the tenant still refuses to leave, landlords may need to instruct bailiffs to recover the property. This is a last resort, as it can be time-consuming and costly.

Practical advice for landlords

Navigating the eviction process for commercial tenants can be daunting, but careful planning and an understanding of the legal requirements can streamline the process. Here are some practical tips for landlords:

1. Seek professional legal guidance: Sorting out an eviction from commercial property can be quite confusing, complex and time-consuming. Landlords may wish to seek professional legal advice. It will streamline the process and reduce the chances of mistakes, which could cause delays or financial losses. Working with a legal expert in commercial property will give you confidence that everything, such as the commercial eviction notice, is correct.
2. Document everything: Documents provide solid support for landlords in every aspect of renting properties, and eviction from commercial property is no different. Keep records of all communication, lease copies and other paperwork involved. This will be invaluable if the case proceeds to court.
3. Understand notice periods: Statutory and contractual notice periods vary depending on the grounds for eviction. Ensure that any commercial eviction notice complies with these timelines to avoid invalidating the process.
4. Prepare for court: Sometimes, court is unavoidable. Getting organised ahead of the court date will be super important.

Eviction from commercial property is a complex process. Landlords need to have a clear understanding of the legal requirements so they don’t trip themselves over. This will cause more significant problems to their property investment. The Landlord and Tenant Act 1954 is key.

By correctly completing a commercial eviction notice and documenting the evidence, landlords can navigate the eviction process for commercial tenants with confidence. It’s also a good idea to consider legal advice regardless of your experience with commercial tenant eviction. It can help save money in the long run.

To safeguard your property investment even further, it’s worth considering commercial landlord insurance. This can be tailored to your needs. Contact us at 01788 818 733 or get a quote online to secure the right coverage for your commercial property today.