Guide: When it comes to repossession: what are your options?

Repossession

When faced with a tenant who has fallen into rent arrears or broken the terms of a lease, there are a number of ways to successfully evict them. We take a look at the options available to commercial landlords who wish to regain possession of a property.

Mutual agreement

If both landlord and tenant agree, a commercial lease can be terminated before the fixed term of the lease has come to an end. This is also known as surrender and is effected when the tenant delivers possession and it is accepted by the landlord. For example, by deed such as a written document or by the tenant surrendering the keys to the landlord.

Break clauses

Break clauses are terms in the lease that are expressly worded to allow one or both parties to exit the lease before the lease is due to be renewed. These can be useful when entering into a new agreement and should be specific about the terms, for example, at what point the lease can be terminated or for how long the tenant is liable for the rent if they exercise their right to terminate early.

Peaceable re-entry

This a quick and effective way of evicting a tenant and regaining possession of a commercial property when the lease has been breached due to non-payment of rent. Re-entry is usually conducted outside of business hours, during which time an inventory of goods is carried out and the locks are changed to ensure that the landlord has possession of the premises.

Forfeiture of lease

When evicting a tenant for a breach of lease other than rent arrears, a Section 146 notice should be served to the tenant. This specifies what the breach is, whether anything can be done to remedy this and that the landlord intends to forfeit the lease. Forfeiture can only be carried out if there is a clause in the lease allowing for this and the landlord has not waived their right to forfeit.

In difficult situations when a landlord and tenant face disagreements, getting experienced Enforcement Agents involved can help to make the process of repossession swift and simple. With more than 25 years' experience, Dukes are well placed to assist commercial landlords in complex circumstances. To discuss how we can help with tenant eviction, contact Dukes Bailiffs today.