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5 common grounds for commercial lease termination

On Behalf of | Oct 9, 2024 | Commercial Landlord Tenant Law |

Owning commercial real estate involves ensuring your investment remains profitable. A significant challenge you might face is dealing with a tenant who breaches the lease agreement. Addressing this concern can be complicated, but knowing when and how you can legally terminate a lease is a crucial first step.

Here are five common grounds for lease termination in Arizona:

Non-payment of rent

If your tenant consistently misses rent payments or falls behind, you have the right to terminate the lease. Keep thorough records of payment lapses and any communication regarding them.

Violation of lease terms

Leases have specific terms and conditions that both parties must follow. If a tenant breaches these terms – whether by subletting without permission or making unauthorized alterations – you may have grounds to end the lease. Document any violations and notify the tenant to fix the issue.

Illegal activities

Illegal activities on the premises are a clear violation of the lease and state laws. These activities range from operating without proper licenses to more serious criminal actions. Immediate termination is often necessary to protect your property and other tenants.

Property damage

Tenants causing significant property damage can face lease termination. This includes deliberate destruction or neglect that results in major repair costs. Documentation of the damage and any repair estimates will be important.

Health and safety violations

Non-compliance with health and safety regulations can pose risks to the property and other occupants. Such violations can justify lease termination. Regular inspections and clear communication can help mitigate such issues.

The legal process

Understanding the grounds is just the beginning. The termination process involves several legal steps. First, give the tenant proper notice with the reason and time to fix the issue. Keep records of all communications and evidence, which are crucial if the matter goes to court. If the tenant does not comply, start formal eviction proceedings by filing a lawsuit and possibly attending a court hearing.

Seeking legal assistance

Lease termination can be complex and unique. Consulting a legal professional can help ensure you follow the correct procedures and protect your interests.

Being informed and prepared is critical to successfully managing your commercial property. Do not hesitate to seek help to manage these challenges effectively and maintain the integrity of your investment.