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General Landlording & Rental Properties

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Shin Bo
  • Philadelphia, PA
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Terminating a long time commercial tenant - etiquette?

Shin Bo
  • Philadelphia, PA
Posted Jul 11 2019, 09:31

Hello everyone,

We purchased a commercial property about 5 years ago and inherited a commercial tenant who has been kind of a pain in the butt and we do not wish to resign the tenant when their lease expires at the end of the year.  Is there a good way to approach this process to minimize blow back? Or should I just give them their 30 days notice and be done with it.  I'm in PA for whats it worth. 

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Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
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Patricia Steiner
  • Real Estate Broker
  • Hyde Park Tampa, FL
Replied Jul 11 2019, 09:42

I recommend sending the tenant a letter now advising that the lease will not be renewed when it expires on (date). Offer that you have decided to go in a different direction with the property and that you wanted to give them as much notice as possible to allow for a seamless transition to a new location.  Wish them continued success, sign, and be done.  

I would send one copy by regular mail and one by certified mail with proof of delivery.  

And, won't it be a great way to start off the New Year without them!

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Shin Bo
  • Philadelphia, PA
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Shin Bo
  • Philadelphia, PA
Replied Jul 13 2019, 10:03

Yeah I feel like that would be the proper way to do this. But I also feel like as soon as this tenant receives that letter she is not going to pay rent anymore. 

Literally just today she called me demanding someone come take a look at her air conditioning unit. I told her that she is a commercial tenant and that her lease states that she is responsible for the maintenance of her air conditioning unit and repairs. She ignores that and says if she is going to call somebody she's going to deduct it from the rent. I told her if that happens we are going to head to court and she says fine. Easily the most unreasonable tenant I have ever dealt with. 

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Wesley W.
  • Rental Property Investor
  • The Vampire State
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Wesley W.
  • Rental Property Investor
  • The Vampire State
Replied Jul 13 2019, 11:18

Wow.  Seems like you are going to have problems with her one way or another, so I say just proceed as planned with the termination and if she stops paying rent, start eviction proceedings.  Hopefully your lease provides for the recovery of legal fees for such.

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Shin Bo
  • Philadelphia, PA
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Shin Bo
  • Philadelphia, PA
Replied Jul 14 2019, 08:27

Yeah, when we purchased the property the previous landlord mentioned that she was quite the character, but she paid relatively on schedule so we tried to accommodate to maintain a good working relationship but she is getting on my last nerve. 

I hired a plumber to do work at her unit in the past and he put it crudely but probably accurately "she must have been really hot back in the day to expect people to bend over backwards for her like that"