My commercial tenant is repeatedly late in paying rent. Do I have legal grounds to discontinue the lease even after he pays the past due rent?
I just want to make sure that I am doing everything legally. We have a tenant in a commercial building that is 2 months behind in rent and has been habitually late paying rent for almost the entirety of the lease, which was initiated last April. We gave him a 45-day lease (not yet signed) on April 14th and again on April 17th. We were attempting to give him an opportunity to get caught up on rent by 5/31/2025 before offering a more long-term lease. At that time, he was 3 months behind in rent.
In the agreement, he was supposed to pay rent due for March on 5/1/2025—or at least make a payment toward the amount due. When I contacted him on 5/2/2025 to inquire about the rent, I got a return message saying he was unable to pay.
So, since technically there is no signed lease agreement at this time, am I proceeding correctly by providing a 14-day notice to quit for non-payment?
We are not really interested in proceeding with a lease agreement any longer. But, if he can repay the amount that is behind within 14 days, can we proceed with an additional notice to quit after? Since there is no longer a lease agreement, are we required to give him longer than 14 days to vacate if he manages to pay the amount in arrears?
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Since the tenant has not signed the new lease, and the previous one has expired or is operating on a month-to-month basis, you’re within your rights to treat this as a tenancy at will or a holdover tenancy under your state’s commercial lease laws.
Because this is a commercial property, most states don’t require the same long notice periods as residential leases. If your state allows a 14-day notice to quit for non-payment under commercial lease rules (and most do), then yes, you're proceeding correctly. Be sure the notice is in writing and clearly states the total amount due and the deadline for payment.
If the tenant pays the amount due within the 14 days and you still do not wish to continue the lease, you can follow up with a separate notice to quit without cause—usually a 30-day notice, but that can vary depending on your state and lease structure.
You are not obligated to continue a tenancy just because the tenant pays late. Since there’s no current signed lease, your approach to cutting losses now is legally sound. Keep documentation of everything—it will protect you later.
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I just want to make sure that I am doing everything legally. We have a tenant in a commercial building that is 2 months behind in rent and has been habitually late paying rent for almost the entirety of the lease, which was initiated last April. We gave him a 45-day lease (not yet signed) on April 14th and again on April 17th. We were attempting to give him an opportunity to get caught up on rent by 5/31/2025 before offering a more long-term lease. At that time, he was 3 months behind in rent.
In the agreement, he was supposed to pay rent due for March on 5/1/2025—or at least make a payment toward the amount due. When I contacted him on 5/2/2025 to inquire about the rent, I got a return message saying he was unable to pay.
So, since technically there is no signed lease agreement at this time, am I proceeding correctly by providing a 14-day notice to quit for non-payment?
We are not really interested in proceeding with a lease agreement any longer. But, if he can repay the amount that is behind within 14 days, can we proceed with an additional notice to quit after? Since there is no longer a lease agreement, are we required to give him longer than 14 days to vacate if he manages to pay the amount in arrears?
Lexi, Chatbot
Have you documented all the instances of late rent payments and communication with the tenant regarding the outstanding rent?
A lot of our conversations have been by text messages, but I do not have documentation of in-person conversations with him.
Lexi, Chatbot
Are there any specific clauses in the proposed lease agreement that address late payments or non-payment of rent?
I don’t think so, other than late fees—which we have never asked for until now.
Lexi, Chatbot
Is there anything else the Landlord-Tenant Lawyer should know before I connect you?
Not that I can think of right now.
Gurney P
Welcome and thank you for using AskALawyer. My name is Gurney, and I’m the attorney assisting you. I'm happy to offer guidance based on my experience as an attorney and former prosecutor.
Gurney P
Since the tenant has not signed the new lease, and the previous one has expired or is operating on a month-to-month basis, you’re within your rights to treat this as a tenancy at will or a holdover tenancy under your state’s commercial lease laws.
Because this is a commercial property, most states don’t require the same long notice periods as residential leases. If your state allows a 14-day notice to quit for non-payment under commercial lease rules (and most do), then yes, you're proceeding correctly. Be sure the notice is in writing and clearly states the total amount due and the deadline for payment.
If the tenant pays the amount due within the 14 days and you still do not wish to continue the lease, you can follow up with a separate notice to quit without cause—usually a 30-day notice, but that can vary depending on your state and lease structure.
You are not obligated to continue a tenancy just because the tenant pays late. Since there’s no current signed lease, your approach to cutting losses now is legally sound. Keep documentation of everything—it will protect you later.
So, if he is able to pay the past-due amount by the 14-day time frame, we can just follow up with a 30-day notice to quit?
He did see the new 45-day agreement. He and I went over it together over the phone. We agreed he would print it off and sign it—but that hasn’t happened yet.
Gurney P
Yes, exactly. If he pays the past-due rent within the 14-day notice period, you can still follow up with a 30-day notice to quit since the 45-day agreement was never signed.
Without a signed lease, he’s likely a month-to-month tenant, and you can terminate the tenancy with proper notice under your state’s commercial tenancy laws.
Ok. Thank you very much, Gurney, for your time! I appreciate your help! I hope you have a wonderful day.
Gurney P
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