One way to turn a profit from commercial buildings is to rent them out. This is something that you have done successfully for years.
For the most part, your professional relationships with tenants have run smoothly. Unfortunately, one of your tenants has recently stopped paying rent on time.
What are your options in such a scenario?
Get to the bottom of the issue
It’s possible that there is a fairly simple reason why the tenant has stopped paying on time. Perhaps they have changed banks and the non-payment is down to an administrative error.
In some cases, the tenant may just have a temporary cash-flow problem. You may be able to come to an agreement where they can get caught up quickly. Communication is key in any business relationship, including between commercial landlords and tenants.
Exploring other options
Sadly, discussions aren’t always enough to get to the button of the issue and resolve it. There may come a time when you need to explore your legal options. If your tenant is no longer able or willing to pay, then it may be in your best interests to terminate the lease. There are a number of ways that you may go about this.
Ideally, you and the tenant will come to a mutual agreement to terminate the lease so that you can quickly find a replacement. If communications have broken down completely, then you may need to look into alternatives such as actions for a breach of the lease agreement.
As a commercial landlord, you have a host of legal rights. When dealing with tenant issues, it’s important to have experienced guidance behind you.