Can a landlord lock out a tenant who violates their commercial lease?

| Jul 9, 2021 | Commercial and Residential Leases |

If you own a commercial property, the last thing you want to worry about is a tenant who neglects or refuses to pay rent. Sometimes there is a reasonable explanation for a tenant being late on their rent. You should do everything you can to establish communication and to make arrangements to ensure that you receive your rent payments.

However, what happens if there is a communication breakdown, and you feel the tenant is not making any effort of pay their rent?

What rights does a landlord have?

According to Arizona law, “when a tenant neglects or refuses to pay rent when due and in arrears for five days, or when a tenant violates any provision of the lease, the landlord or person to whom the rent is due, or the agent of the landlord or person to whom the rent is due, may re-enter and take possession or, without formal demand or re-entry, commence an action for recovery of possession of the premises.”

Once the landlord has taken possession of the property, if the tenant still doesn’t pay the rent, the landlord can lock the tenant out and seize the property. If the rent is not paid within sixty days after the seizure, the landlord can sell the property and use the proceeds to make up for the lost rent.

Commercial real estate makes a great investment opportunity that can produce lucrative monthly income usually without incident. If you start to have issues with your tenants, it is important that you understand your rights and what you can do to ensure that rent is paid.