How much notice does a commercial landlord have to give?18-12-2023 | Legal Issues
Commercial landlords must give tenants at least three months’ notice before the original lease term expires. 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 will 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. In such instances, commercial landlords must provide six to twelve months’ notice.
At CIA Landlords, we are a landlord insurance brokerage that has been working closely with the best providers to offer customers comprehensive commercial landlord insurance for over two decades. Here, we take a closer look into how much notice a commercial landlord has to give.
Why evict a commercial tenant?
Let’s start by highlighting the reasons why commercial landlords may want to evict a tenant.
Firstly, you will want your tenants to pay you the rent for using your commercial property. Providing you give tenants 7 days’ notice, landlords are allowed to go forward with Commercial Rent Arrears Recovery (CRAR) without going through the courts. CRAR involves sending in enforcement agents to enter the premises and recover the tenant’s business goods and then sell them to cover the non-payment of rent.
A commercial property tenancy lease should have clauses in it which oblige tenants to be responsible for the state of repair of the property. If you discover that your commercial property is in a state of disrepair and it has deteriorated due to your tenant’s negligence, you can serve them with a Section 146 notice that gives them time to remedy the issue.
What if a commercial tenant breaks the lease provisions?
Another major cause of commercial property leases being forfeited is tenants breaking the lease provisions. Tenants breaking lease provisions can lead to landlord possessions by peaceful re-entry. Examples of tenants breaking lease provisions can include
- The expiration of the reasonable notice period for tenants to repair covenants
- If the tenant has consistently failed to pay the rent
- Or any other breach set out in the lease
What is ‘peaceful re-entry’ by a commercial landlord?
Peaceful re-entry is when a commercial landlord attends the property in person, re-enters, and changes the locks. If the tenants are obstructive or evasive, the next stage is going to the courts to get bailiffs in.
A break notice in the lease
Sometimes there is a ‘break notice’ where according to the amount of time specified in the lease, the tenant has the right to terminate the lease before its expiry date.
But a landlord can contest a break notice if they believe they have a statutory ground of opposition.
What is a notice to quit?
A notice to quit is when either a commercial landlord or a tenant serves one period’s notice. Some commercial property leases will be periodic tenancies, such as monthly rolling tenancies.
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