Business Eviction

Avoid business eviction step-by-step. Insider secrets to saving your business.

There are many reasons you might be faced with a business eviction. Your lease contract will stipulate circumstances whereby you must leave the property. If your landlord has surprised you with the threat of eviction, then a careful review of this document is in order.

However the most common reason tenants face eviction has to do with their failure to pay the rent. Under these circumstances, the business owner is fully aware they may have to leave the premises. Likely the business is troubled with financial woes due to local competition, a failing business model or a poor general economy.

If this is your situation, there are several items you must know before your landlord confronts you directly. It may not be easy, but you should prepare ahead of time.

First you should be aware that many of the common practices used by landlords in the past are now illegal. For example, tenants cannot be intimidate or have their personal security threaten. Your landlord also cannot padlock your property, put your belongings out in the street, shut off the utilities, or harass you in any other way.

Today, business evictions are more of a legal matter than they were in the past. Your landlord is responsible for following the law if he or she wants to you off the property.

Before you even get your first eviction notice, you should try to negotiate a lower rate from your landlord. This may be easier than you think especially if you are having business troubles because of a bad economy. In down economic conditions, he is better-off taking less money from you now than trying to fill empty space later.

But sometimes this strategy does not work. In this case, you will start receiving eviction notices. These are legal documents giving you a deadline for making your rent payment. If you miss this deadline, the landlord will file the eviction petition in court. These eviction orders are the fastest moving cases in courts. And they move through the court, the sheriff's office or a marshal's office is responsible for handling the eviction.

Ramifications Of A Business Eviction

Losing your floor space can have harsh, long-term effects for your company.
Here are some of the ramifications of an eviction from your business property.

First, it gives your business the stigma of instability. You may lose customers because no one wants to do business with a company that may close tomorrow.

Second, it makes it necessary to find new property quickly. Finding exactly what you need for your business on such short notice may not be possible. You will then have the added problem of locating storage for your inventory.

Third, you will need extra marketing budget to advertise to your previous customers. Otherwise they won't know where you are. Further, there is a chance most of your customers won't follow you, and you will have to secure new ones. The cost of getting new customers is high. This is especially true if you are in retail. It will be like starting your business again.

Fourth, a new landlord will look into your history. Based on your eviction he or she may refuse to take you on as a tenant fearing that you may default on your rent.

Since many of these consequences are serious, is there anything a tenant can do to prevent this problem? The answer is "yes," but you will need good legal advice. Seek the services of a lawyer who has knowledge of these procedures.

You should know the law is not stacked against the tenant. There are fair recourses available in the face of possible business eviction. Like all areas of business, you must spend time gathering your resources and prepared to take the proper action. This is not a time to put your head in the sand and hope the problem will just "go away." Like all business problems, it will not be a pleasant experience, but if you deal with it head on, you have a much greater chance to come out of it successfully.

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