Commercial evictions can occur in much less time than a residential eviction. If you start falling behind on the rent on your business location, you need to work fast. You will need to take a thorough and honest look at your business, its daily operations, prospects and the ability to bring more capital to the table.
Set up a meeting with your commercial property landlord and negotiate a payment plan over the next few months to make up for your present rent payment shortfall. Your landlord is more likely to be receptive to this type of negotiation if you are in an area with a sizable amount of rent vacancies. Also, if you have a solid recovery plan despite your present situation, a landlord may extend you a break.
If it looks like your business will fail and you plan on closing, your lease agreement may stipulate that you must pay all of the rent for the entirety of the lease. In fact, the landlord may sue you to recover the money that you owe. Officially, the landlord needs to find a replacement tenant but does not need to prioritize the task because you are still on the hook for the charges. You may be able to limit your liability for these charges by finding another tenant for the commercial space.
If you’re looking to avoid bankruptcy, overall debt renegotiation may be the answer. An attorney experienced in debt negotiation can be a powerful advocate that can save you money and help you retain a good credit rating.