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Master
Your Commercial
Landlord Tenant
Law Easily with Our Plain English Guide
Many
commercial landlords run into costly legal problems because they don't
know their commercial landlord tenant law well enough. Learn your
important commercial landlord tenant laws today so that you can manage
your property smoothly and avoid any painful mistakes.
Many
landlords start off with renting out their residential property and may
gradually move on to commercial property. However managing commercial
tenants is a whole different story and that's where you have to spot
the important differences.
How
is a Commercial Lease Different from a Residential Lease?
If you are a commercial landlord, then we have
some good news for you.
While there are many similarities between a commercial lease and
residential lease, residential landlords generally have to follow
stricter laws set up to protect the average residential tenant.
That's why if you're a residential landlord, you are required by law to
maintain your rental property according to the health and safety
standards in your area. You will also have to go through a lot more
trouble and waiting to evict any problem tenants.
On the other hand, commercial leases are viewed as agreements between
competent business people so commercial landlord tenant law grants
commercial landlords a lot more power and freedom as long as they do
not abuse it.
How
do You Handle Security Deposits for Commercial Tenants?
There is no
limit to the amount of security deposits you can collect as
long as it is stated in your lease agreement and you commercial tenant
agrees to it. When it comes to residential tenants, most areas will
only allow you to collect a maximum of 2 month's rent.
More
importantly, you have a lot more freedom to decide what the
security deposits can be used for when you are a commercial landlord.
Most landlords will usually collect 1 to 3 month's rent as
security deposits. They may also ask for a letter of credit from the
bank if their tenants are not financially stable or request costly
property improvements.
More
importantly, you have a lot more freedom when it comes to deducting
security deposits under commercial landlord tenant laws.
Most landlords will usually collect 1 to 3 month's rent as
security deposits. They may also ask for a letter of credit from the
bank if their tenants are not financially stable or request costly
property improvements.
When it
comes to residential tenants, you can generally only make use
of their security deposits for unpaid rent and property damages caused
by your tenants.
How
do You Handle Property Repairs for Commercial Properties?
The good
news for commercial landlords is that your tenants are usually
responsible for any property repair and maintenance. You are not
responsible for keeping the condition of your commercial property in
habitable condition - It's the duty of your tenants to do that.
You are given the freedom to negotiate with your commercial tenants who
will be responsible for which repairs in your rental agreement.
Residential landlords have not have this luxury as the laws in most
countries will slap them with a duty to maintain their rental property.
This means that they will have to maintain their residential property
according to the local health and safety standards and pay for all
repairs unless the damage is caused by their tenants.
How
do You Evict Your Commercial Tenants Quickly and Legally?
Although
evicting your tenants is never a pleasant experience, it is often
quicker and easier when it comes to commercial tenants.
With residential tenants, you will have to give them a written notice to quit
before
you can go to court and file a lawsuit. This notice will grant your
tenants a few days to fix up their problems before you can bring your
case to court.
For commercial tenants, you usually do not have to give them this
written notice before filing a lawsuit to evict them. However, we do
recommend that you still give them a written notice and the chance to
fix any issues before you head to court so that you can save on any
unnecessary trouble and legal fees.
Depending largely on the terms of your commercial agreement, you may
even be given the right of self-help when you are faced with errant
tenants.
This means that if your commercial tenants cause any major problems and
break the terms in your agreement, you may be allowed to take drastic
actions such as changing the locks of your property or cutting off the
electricity and water supply to chase them off your property.
However the commercial landlord tenant laws in some areas have strict
guidelines that you must follow before you are allowed to self-help so
make sure you understand your local laws before taking any action.
Read
what our visitors have to share below OR Scroll down to
add your own comment
How do You Make Use of the Commercial
Landlord Tenant Law to Manage Tenants?
The good news is that commercial landlords are granted a lot more privileges and rights to manage their tenants. How do you make sure of this extra freedom to manage your tenants quickly and easily? Share your valuable experience with everyone here - We will love to hear your tips, comments and real life stories:
What Our Visitors Have to Say on Managing Commercial Tenants
Click on the links below to read the valuable tips that our other visitors have to share:
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