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Updated over 5 years ago on . Most recent reply

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David Daynes
  • Rental Property Investor
  • UT (utah)
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Commercial tenant road to eviction

David Daynes
  • Rental Property Investor
  • UT (utah)
Posted

I have a medical commercial tenant who is not paying their rent. They also aren’t answering us which makes me nervous. In their lease, a late charge starts at day 10. I have been reading up on the road to eviction but it’s mostly deals with Residential. At what point do I get an attorney involved and what are the steps to get to changing the locks? Any idea on legal cost? During a pandemic I am certainly willing to negotiate with compassion but when they ignore you, it becomes tough. 

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Ronald Rohde
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
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Ronald Rohde
#3 Commercial Real Estate Investing Contributor
  • Attorney
  • Dallas, TX
Replied
Originally posted by @Account Closed:

What's the worst thing that could happen if you gave them an eviction notice and you somehow did it wrong?  Not much.  They might get a lawyer who tells you you did it wrong, so it's not enforceable.  Okay, didn't cost you anything.

But, on the other hand, it might work.  You really have nothing to lose.  So, what I'd do, is get an official looking tenant eviction for for your state, whether or not it's for residential, as long as it looks legal and scary.  And I'd post it on their door or hand it to them, and I'd also send it to them via USPS mail with delivery confirmation.

You can print out your own priority mail with delivery confirmation online at usps.com.  In order for it to work, you just have to choose package instead of letter.  Stick it in a padded envelope or small box, so it's considered a "package" by USPS.

You can't buy tracking for a letter online, which is why you have to go through this right now.  Then, you can just stick your package/letter in any USPS box or leave it for your letter carrier to take.  They can't avoid proof of service this way.

Then, see what happens.  At least that way, you would have proof you started the process.  And if you did it wrong?  Like I say, nothing bad will happen.  You'll be in the same boat, but no attorney fees until you can actually do anything, since the courts aren't open right now anyway.

But, it might work in getting you some money.  Worth a try.  That's what I'd to.  

 I'm going to disagree with this advice.

I would decide whether you want to keep this tenant or not. A lot of my clients are sending notice of breach, reserving their proper eviction rights, but trying to negotiate during the eviction. Will you be able to replace this tenant if they left? 

The reality is that its not a place for legal threats or scary packages. You need to know the law and apply it with measured risk in your business decisions.

  • Ronald Rohde
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