Commercial Evictions
When you own and/or manage leased commercial property, you are often required to balance your business relationships with protecting your financial interests. If a tenant fails to comply with the terms of the lease agreement, you may be forced to put your financial interests first and pursue a commercial eviction. It is crucial for landlords to understand that commercial evictions differ in several important respects from residential evictions. Working with experienced Florida commercial real estate attorneys at Lieser Skaff can help you protect your investment and ensure that the eviction process proceeds as quickly and efficiently as possible.
When Can You Evict a Non-Residential Tenant in Florida?
As is the case with a residential eviction, a commercial landlord cannot simply change the locks or remove a tenant from leased property without process, regardless of the nature of a dispute. To legally evict a commercial tenant, you generally must follow the laws and procedures set forth in Chapter 83 of the Florida Statutes which require you to have a legal reason to pursue eviction, such as:
Failure to Pay Rent:The most common basis for a commercial eviction is the tenant’s failure to pay rent when it becomes due according to the terms of the lease agreement. This is also one area in which commercial evictions often differ from residential evictions, because commercial leases frequently include triple net lease provisions, meaning that the requirements payments cover everything, including utilities, maintenance, insurance, and taxes. Simply calculating the amount owed can be challenging and can lead to disputes. Nevertheless, if a tenant fails to make the required payments, the landlord usually has the right to demand payment or pursue eviction.
Breach of Lease Terms: Even if the tenant is current on all rent-related payments, a dispute may arise if the tenant is in violation of another lease term. Common examples of lease violations include:
- Operating a type of business that is not authorized.
- Violating maintenance obligations.
- Failing to maintain required insurance coverage.
- Subleasing without approval.
- Engaging in conduct that violates the law or local regulations.
Holding Over After the Lease Ends: Commercial tenants are expected to surrender possession of the property when the lease expires unless both parties agree to extend the tenancy. If a tenant refuses to vacate after the lease terminates, that tenant may become what Florida law refers to as a “holdover tenant” or “tenant at sufferance.”
The Importance of the Commercial Lease
Although many aspects of a residential lease are governed by state law in Florida, commercial leases are predominantly governed by contract law. As such, each commercial lease agreement is negotiated by the parties and contains unique terms and conditions agreed upon by the parties. Those terms and conditions determine the rights and obligations of each party, including crucial aspects of the lease such as rent obligations, notice requirements, default provisions, and available remedies in the case of a default.
For landlords contemplating a commercial eviction, understanding the terms of the lease from a legal perspective is a crucial first step. Unfortunately, landlords frequently make the mistake of initially pursuing an eviction without the assistance of an experienced attorney, only to find that they failed to comply with contractual notice and/or opportunity to cure requirements which can result in a costly delay or outright dismissal of the case.
Having an experienced commercial eviction attorney review the lease agreement, determine whether the tenant defaulted, and identify an effective legal strategy is the best way to enforce your rights and protect your financial investment.
Understanding Florida's Commercial Eviction Process
Commercial evictions generally proceed through the county court in the county where the property is located and while each case is unique, the process typically follows several steps, including:
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- Providing the Required Notice: Most commercial lease agreements include a notice requirement that requires the landlord to provide a written notice to the tenant identifying a default. Depending on the type of default, the notice may also include a demand for payment or an opportunity for the tenant to cure the default within a specified time. A mistake made at this stage of the process can result in the need to restart the process, causing you to lose valuable time and money.
- Filing the Eviction Documents: If the tenant does not comply with the demand or cure the default, the next step is to file a formal eviction action seeking possession of the property. The complaint must set forth the legal basis on which you are seeking eviction and possession of the property.
- Service of Process: After the lawsuit is filed, the tenant must be formally served with the summons and complaint. Florida law contains specific requirements governing service of process, and failure to comply with those requirements may delay the proceedings. The tenant then has a statutory time period within which to file a formal response.
- Tenant Response: The tenant may file a response setting forth defenses to the alleged default. Sometimes, a tenant will also file a counterclaim against the landlord. While some counterclaims are legitimate legal disputes, filing a counterclaim is also a common stall tactic used by tenants. Nevertheless, if a counterclaim is filed, the landlord must file a timely response. Failing to properly respond to a counterclaim can directly impact your rights and your financial interests. If the tenant fails to respond to the complaint, you can request a default judgment.
- Court Proceedings: Often, non-residential landlord-tenant disputes can be resolved through out-of-court negotiations, but when negotiations are unsuccessful, the matter will proceed to a final hearing. The court will evaluate whether the tenant violated the lease and, if so, whether the landlord complied with all legal and procedural requirements throughout the eviction process. If the landlord prevails, the court enters a judgment awarding possession of the property along with a writ of possession directing the sheriff to restore possession of the premises to the landlord.
Why Legal Representation Matters in a Commercial Eviction
Non-residential lease disputes often involve complicated lease agreements, long-term business relationships, and substantial financial interests. Evicting a commercial tenant does always not involve the same streamlined process that a residential eviction does. On the contrary, each eviction is as unique as the contract upon which the dispute is based. Proceeding without the advice and guidance of an experienced attorney can lead to costly and time-consuming mistakes.
At Lieser Skaff, we have over two decades of experience handling commercial evictions. We are well versed in the law and procedures involved as well as the common pitfalls that landlords often encounter during the eviction process. We carefully review the lease agreement to ensure that you have solid legal grounds upon which to pursue eviction, and we ensure that all pre-filing notice requirements are met before moving forward. If a counterclaim is filed, we will respond appropriately without letting it derail the eviction process. When a favorable out-of-court resolution is possible, we will negotiate an agreement on your behalf, but we will prepare your case from the outset to prevail in court. In short, we provide valuable guidance throughout the commercial eviction process and beyond to ensure that your rights and your financial interests are protected.