Can Commercial Property Management Company Lock Out Tenants?

In larger types of office buildings, warehouses or industrial parks the actual building owners use commercial property management companies. These individuals represent the owners in leasing, collection of rent, maintenance and all other aspects of property management. In situations where a tenant breaks a lease the commercial property management company may have options to terminate the lease or lock out the tenants based on the terms of the lease or rental contract.

Understanding the Terms

The specific remedies or actions that the commercial property management company or a building owner can take against a tenant should be detailed and explained within the terms of the lease. Most commercial leases are long and complex and include a significant amount of legal terminology. Having an attorney that is familiar with commercial real estate review your lease is important to know if you have options as the tenant.

Non-Payment Notifications

In addition to the possible lock out of a tenant, most leases will also indicate any prior actions that the management company has to take before a lock out can occur. Typically these will include notices that must be sent to and received by the tenant before a lock out could take place. These notices also have to provide a time designation for making the lease payment and any penalties or late fees that are required. In most cases these late payments and fees have to be paid in full by the date indicated in the notice and cannot be paid on an installment basis.

Breaches of the Lease

As with non-payment issues, if the tenant is violating or breaching some other clause within the lease agreement the commercial property management company may take action. Locking out the tenant is rarely the first step, notifications are typically required that allow the tenant to correct the breach. Often this occurs if the office or rental space is being used outside of the intended purposes or if sub-letting, noisy equipment or other usage violations occur.

Legal Help

If the commercial property management company or the building owner does lock out a tenant without proper grounds the tenant can take legal action. This can include a lawsuit for wrongful denial of occupancy and any monetary damages that may have occurred because of that situation occurring. Speaking with an attorney will provide you with a clear understanding of both the terms of your lease and the options you have for moving forward.