What to do if a commercial tenant fails to pay the rent, even if it was already lowered by landlord to help.

There is a contract in effect that still has 11 months left on it but how to realistically collect. Everything falling apart in this economy does not allow me to spend money on an attorney. There are money leaks from every angle (my husband was laid-off, my business is not selling and now my tenants are not paying).
In Leasing Property - Asked by Maria P. - Dec 16, 2008
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Answer(s)

Ronald S.
Developer
Rocklin, CA

Sit down with the tenant and find out what is going on and what their plan is. You probably don't have a choice but to get an attorney unless you want to just let them walk if that is what they want to do. It stinks but you are not alone. I have several hundred thousands of dollars in judgements that are not worth the paper they are written on.
Good luck.

Dec 16, 2008
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Rob H.
Developer
Saint Louis, MO

If they still have a solid business model, start taking a percentage or start having them sign notes personally at some modest interest rate. If they are broke, the list of vendors will already be stacking up against them and you can chase it or start finding a new tenant which is usually the smarter thing to do and start the eviction process quickly.

Dec 18, 2008
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Chris S.
Broker/Agent
Coeur D'alene, ID

Many counties have some form of legal aid available. At the very least your county should have the paperwork available to file notice and start the eviction process.
My vote ... get them out of the building sooner rather than later.

Jan 16, 2009
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