Commercial investments are more reliable investment options than residential premises. However, they are not immune to the effects of inflation, and your tenants could start defaulting on their commercial payments. As a commercial property owner, regaining your property and renting it out to another party is the easiest way out. One of the ways to get your property back is using the right to forfeiture of the commercial lease once it comes to an end. Although it seems like an easy thing, doing it the wrong way has its consequences that include prosecution. It is essential that you seek legal help before you set out on the mission to get your property back.
What Is Forfeiture?
Forfeiture refers to the right of a landlord to repossess their property after a breach of contract. The breach of contract could be due to non-payment, insolvency, or any other issues according to the agreement. The landlord should, however, issue a notice to the tenant before going to recover their property.
Exercising the Right
Before you exercise your right, you should formally demand the rent. You should allow the tenant between two and four weeks before you can exercise your right. Once the period lapses, you can exercise your right. Should the tenant offer you any payment, engage a lawyer for legal advice. The common ways of enacting forfeiture include:
You need to get permission from a court of law to exercise your right. The court will issue you a document indicating that you have the right to possess your property.
This process involves going to your property in the absence of the tenants and installing a new door-locking system. If there are any goods in the property, you should handle them according to CRAR guidelines.
Although you have the right of property forfeiture to terminate a commercial lease or when a tenant defaults on rent payments, forfeiture is a sensitive area of the law. Therefore, you should involve an attorney before and during the process of getting your property back.