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Updated 4 months ago on . Most recent reply

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Anthony Goulbourne
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How to get out of the commercial lease!? Tenant didn’t pay after 4 months free

Posted

hi I have this new tenant in my small commercial space to open up their nail/beauty salon. Gave them four months of free rent to renovate and get their business up and running. While there have been some setbacks mainly due to their incompetence by fleshing paper towel down the toilet And causing backup. I was able to get that fixed and pass the bill onto them. However, she is for the most part not communicative and hasn't got her business insurance or business permits in place as of yet and I just want to know how do I get out of this lease before it gets worse?

should I just give her back her deposit and have her sign a document releasing her of the  obligations & give the space back?

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Theresa Harris
#3 Managing Your Property Contributor
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Theresa Harris
#3 Managing Your Property Contributor
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Never give them free rent up front-do that at the end of the lease.  Also never give them keys if you require certain things under the terms of the lease (eg proof of insurance, business permit, etc).  Give them notice that they are in violation of the lease for non-payment and if they don't give you the back rent in full within the time required by your local laws, then start filling for eviction.  Do not return any of the deposit as that goes to damages and unpaid rent.

  • Theresa Harris
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