Common Methods of Lease Forfeiture of Commercial Property
Whenever a landlord issues a property to a tenant, the two parties enter into a lease agreement. The lease agreement is valid for a specified duration of time. A common breach of the agreement is when the tenant fails to pay rent when it is due.
In this case, a landlord has the right to lease forfeiture of the commercial property, a service offered by firms such as MS Webb & Co.
Methods of Effecting Forfeiture
Before effecting the forfeiture, the landlord should engage the tenant. If further misunderstandings arise, the landlord can choose to take action. When a landlord intends to get a re-entry into their property, it is a sign that the landlord is ready to terminate the lease.
There are two ways a landlord can gain entry into their property:
A landlord can initiate court proceedings as a means to forfeit the lease. After the landlord gets a claim form, they can go ahead and gain physical re-entry. The landlord then can go ahead and ask for relief from the tenant to clear rent arrears.
This method is the most preferable among most landlords. It involves the physical entry of the landlord into the property. The landlord keeps the tenant away and gains possession of the property. Unlike the method of court proceedings, this method is easier, less expensive and more effective than through court proceedings.
However, the landlord should not possess the property while the tenant is in the property. The tenant and landlord can choose to trade goods in the property in place of the arrears through the process of rent arrears recovery.
Upon following the right procedure, these two methods can lead to forfeiture and eventually the termination of the lease.
Lease forfeiture of a commercial property is a delicate issue that requires expert handling. The processes involve different procedures which the two parties should follow to the letter. Failure to abide by the law could lead to loss of the right to forfeiture to the landlord.