In Arizona, businesses that rent commercial property are obligated to pay their rent on time just as residential renters are. The property owner has the right to initiate a legal action if they are not receiving the rent when it is due.
For many, it is a last resort to move forward with legal action. However, if the failure to pay the rent is a persistent problem or has lingered for an extended time-period, it is imperative that the property owner knows their options.
Commercial tenants must adhere to certain requirements
A commercial property owner has the right to expect the rent will be paid on time. If its not paid on time, the owner can inform the tenant that they have five days to pay, otherwise, they may have to leave. They do not need to make a formal demand or reentry to do so.
Even if the tenant chooses to leave, the landlord still maintains the right to be paid for the past due rent. If the renter does not pay, the landlord can move forward with an eviction.
They can also place a lien on the personal property that is left behind. It can then be seized to secure payment for unpaid rent. If there is a seizure and the rent has not been paid for 60 days, the landlord can sell the personal property.
Weighing alternatives can be beneficial
It can be difficult to fill a commercial space and when a property owner or manager has a relatively reliable tenant, they do not want to initiate an eviction unless it is necessary. There are solutions to consider like giving an extension on the rent or considering other workable ideas.
Commercial real estate law differs from residential real estate law. It is wise to have a grasp of how to address these issues as seamlessly and effectively as possible while still recovering what is owed.