How to remove a commercial property tenant - 9 Things to Consider

When it comes to commercial properties, matters between tenants and landlords must be handled very carefully. It is very important that you are provided with the best legal assistance possible, so that you know, whatever your role in the matter, what your rights are as a landlord or tenant.

Security of tenure
The Landlord and Tenant Act 1954 protects all commercial business tenants. At the end of the lease, the tenants have a statutory right to require their landlord to grant them a lease with similar terms to the existing lease.

If the tenant wants to leave at the end of the term, it must be discussed before the lease is signed. Make sure they understand that they are going to contract out of those security of tenure provisions provided by the Landlord and Tenant Act 1954.

What if the tenant wants to leave and contract out?
If the tenant wants to contract out, they will need to sign a declaration that confirms that before they complete their lease with the landlord, they were served a notice explaining that they were going to have to contract out of their security of tenure provisions, and they would sign a declaration to confirm that they had been served their notice, and they understand that at the end of their lease term, they would have no protection and would have to vacate.

What happens if the tenant doesn’t contract out?
If the tenants don’t contract out of the 1954 act, they are still protected by law. At the end of the lease term, they will have a right for the landlord to grant them a new lease.

If, as a landlord, you haven’t excluded security of tenure, and you haven’t contracted out of the act, there are specific grounds for possession. You would have to prove to a tenant or the court if:

• You want to occupy or redevelop the property
• The tenant isn’t paying rent or breaches the lease
• You want to rent out the entire property

A tenant must sign the declaration before the lease is completed. If it is signed:
• less than 14 days before the lease is completed, they must swear a Statutory Declaration in front of an independent solicitor
• over 14 days before the lease is completed, they sign a Simple Declaration that doesn’t need to be in front of a solicitor

A copy of the notice that was served to the tenant, and the declaration they signed, will be attached to the back of the lease, so everyone knows what was agreed and whether the tenant has to vacate or not.

How do I raise the issue of contracting out my tenant?
If you’re a landlord with an agent, they will raise the issue with you and the tenant. If you found the tenant yourself, your solicitor will need to raise the issue with the tenant or their solicitor before the lease is agreed.

Get a fixed-fee initial consultation to discuss your options
It is recommended that you take out legal advice when entering into a new commercial lease, whether you are a tenant or landlord. The importance of a lease can’t be understated as they last for a long time, so you should make sure that you are prepared!

If you need any more advice about your rights as a commercial tenant or landlord, our experienced solicitors are on hand to help guide and advise you through the process.