Your commercial tenant failed to pay lease. You have heard that things aren’t going very well for them, but now it is apparent. As a property manager your own duty and obligation is to solve the issue as quickly as possible. When the tenant failed to pay by the due date they have efficiently breached the lease and you are entitled to evict the tenant from the property or home. An eviction lawsuit commonly known as an Unlawful Detainer action is a fairly straightforward legal process. The important thing for property managers to know would be that the steps involved in this process are essential and must be followed to the notice of the law. A real estate lawyer representing both parties in the action frequently occurs. If your property manager has adopted the law, given proper notice, and it has a detailed file of all of the correspondence involving the tenant and their company the particular unlawful detainer action should go fairly smoothly and the landlord or owner should prevail.
The First Step Is To Solve Rent Payment Issue If Possible
If at all possible the property manager should make every effort to get the tenant to make the rent payments and bring their lease current. If this involves waiting a few extra times for payment maybe this would be the best course of action instead of filing a lawsuit. Your individual company policies and best practices will dictate this action, but it would be better for all parties to resolve before lawsuit.
Three-Day Notice Drafted
If a transaction is not forthcoming then a ‘three-day observe to pay or quit’ must be prepared and properly served on the tenant. This notice must be in a specific legal format. A commercial proprietor, landlord or property manager can choose between different types of 3-day notices; 1) specifies the precise amount of rent owed; or 2) estimates the amount of lease owed – usually when a tenant is paying a percentage rent.
If the lease requires the tenant to pay for rent and other separate amounts intended for triple net or CAM charges, the property manager should get the correct advice on whether or not two separate plus distinct notices are required to be offered. For example , if the property manager or even landlord accepts an overpayment of the rent because they have miscalculated and the tenant overpaid estimated rents plus CAM charges this may lead to a tenant victory in the unlawful detainer action. This would also possibly give the tenant the right to attorneys’ costs. It is critical to be correct in this action.
The Three-Day Notice Must Be Correctly and Legally Served
The renter is deemed served when they are personally served with the three-day observe, or a responsible person at the place of business is personally served on the property. In the event no one is available the homeowner or property manager can connect the notice to the front entry door of the business premises while at the same time sending a copy of the three-day notice by certified mail come back receipt requested. The landlord or even property manager must then prepare a ‘proof of service’ in the correct format which states in pertinent part that the ‘three-day notice’ had been served on the tenant, or explain the method of service.
The Property Manager or Landlord Has a Three Day Waiting Period Required for Service to work
After properly serving the three-day notice a three day waiting period begins on the next business day. If the third day falls on the weekend or holiday the three day waiting period is extended to another business day.
If the tenant decides to pay all rent due at this point or even corrects any outstanding violation from the lease terms then the eviction process ceases. If the tenant makes part payment the landlord or real estate manager can accept partial transaction but must notify the renter that they are not waiving their rights to proceed with an eviction.
In case the tenant has violated the particular lease by way of some criminal act or conduct then the eviction process continues.
At the end of the three day waiting around period the landlord or home manager may go forward with filing and serving a complaint plus summons.
Summons and Complaint are Prepared and Served
In the event that the renter has failed to cure their outstanding rent violation, or failed to remedy any other violation that they have been property or home notified of, then the landlord or property manager may proceed with filing and serving the subpoena and complaint to the tenant. A 3rd party not involved with the action, usually a registered process server can be hired for a fee to function the papers on the tenant. The particular summons, complaint and proof of support must then be filed using the court clerk’s office together with a copy of the lease, and then real estate served three-day notice and its proof of service.
Technical Mistakes Can Cause Delays
If the landlord or property manager has taken this process on by themselves there is a possibility that they have made a technical error in the processing, preparing, helping, and filing these documents. There are many technical areas of the law which should be followed or will result is usually substantial delays if they are not. The tenant who hires an attorney will likely find these technical errors, when the court doesn’t find the errors. This will likely result in delays which means money to the property owner. The best course of action in these situations is to hire an eviction attorney to help prevent delays and additional expenses for the owner.
Court Proceedings Require that All Parties Appear in Front of a Judge
If the tenant does not contest the eviction
A properly served renter has five days to oppose the eviction. If substituted program was used then the tenant might have fifteen days to file a reactive pleading to the action. If the tenant fails to oppose the eviction the particular landlord or property manager can seek a default judgment of possession of the premises. This will probably be granted and the case is going to be referred to the Sheriff’s office regarding tenant lockout (see below).
If the tenant contests the eviction
When the tenant hires an attorney and competitions the eviction then things will require a while longer. The tenant is going to be granted more time to prepare and there will be approximately thirty-day period in which a test will be set. If the landlord benefits then the tenant will have to pay the rent and other losses most likely which includes attorneys’ fees. If the tenant benefits the landlord may have to pay attorneys’ fees. In this situation a property manager really needs to be represented by advice.
The Landlord or Property Supervisor has the Right to Lockout the Tenant
Assuming a landlord victory the particular county sheriff will post the ‘Five-Day Notice to Vacate’ the premises on the tenant’s door or even entry into the business. On the sixth day the sheriff meets the particular landlord or property manager on the property.
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The landlord or property or home manager then receives a receipt of possession of the property. If the tenant is still there when the sheriff comes, the sheriff will then physically remove the tenant. The landlord or house manager will now have a locksmith come and change the locks to keep the particular tenant out.
Notice to Declare Property
If the tenant leaves behind individual property there are state statutes that will deal with this specific issue. The homeowner or property manager must provide the tenant fifteen days after the lockout period to claim any belongings from the property, or if the tenant left before the lockout, eighteen (18) days after the mailing of the “notice of belief of abandonment” to the tenant’s last known address. The particular notice must describe the property with specificity so the tenant can determine it, and the notice must also explain the storage costs. A prudent practice for a landlord or home manager would be to photograph and record all of the tenants’ belongings so that there was not a later dispute.
It is not legal for a landlord or property manager to hold a tenant’s personal house as security for payment of money awarded by a court judgment.
Unclaimed Property Disposed of or Sold
When the fifteen day waiting period is over the landlord or property manager can dispose of the tenant’s personal property if it is worth less than $750 or $1. 00 per sq . foot, whichever is greater. If the property is worth more the homeowner or property manager must auction it through a public sale held after properly published notice with the proceeds turned over to the county, minus expenses.
Although this article provides briefly touched upon this process you should see that this is not a simple process, but is really a process which should be taken seriously and professionally. It is always a best practice to have eviction attorney help a homeowner and/or a property manager through this technique.