Learning How Much Does an Eviction Cost a Tenant of a Commercial Space
A bad tenant could leave a small business with far more than a bad taste in their mouth.
If you have enough of your tenant’s antics, you might consider evicting them. Usually, you have to fill out an eviction notice. However, you must research the process for a commercial space.
That said, the cost of eviction for commercial properties can be higher than for residential ones.
So how much does an eviction cost a tenant of a commercial space? Read on to learn more.
Average Cost of Evicting a Tenant from a Commercial Space
Commercial eviction expenses can vary depending on certain factors. We’ll be talking more about these factors in the next section.
But as a general estimate, it can range anywhere from $3,500 to $10,000 or more. This includes legal fees, court costs, and lost rent during the eviction process. It also includes any additional damages or repairs that may be necessary.
Factors That Affect the Cost of Eviction
The tenant eviction costs from a commercial space depend on several factors. Below are some of the most important factors to keep in mind.
The Type of Eviction
There are two types of eviction, namely unlawful detainer (UD) and lockout eviction. UD is for tenants who have breached their lease agreement. Meanwhile, lockout eviction is for tenants who have abandoned the property.
Laws and regulations vary from state to state, so the cost of eviction will depend on where you live. Some states are landlord-friendly. This means that they favor landlords over tenants in eviction cases.
The Length of the Eviction Process
Depending on your state’s laws, the time it takes to evict a tenant can affect the total cost. Some states have a longer eviction process. This could mean additional legal fees and other expenses.
Hiring an Attorney
In most cases, landlords need a lawyer to handle the eviction process. The cost of hiring an attorney can vary widely.
Keep in mind though that hiring them is often necessary for navigating complex legal proceedings. They’ll help you learn more about commercial tenant evictions as well.
Aside from the direct costs of eviction, there are other potential expenses when dealing with a difficult tenant. Below are just some of these other considerations.
Evicting a tenant means losing out on rent for an extended period. This can have a significant impact on a landlord’s cash flow and bottom line.
Unfortunately, some tenants may cause damage to the property during the eviction process. This can happen if they are angry or retaliating. This can result in extra repair costs for the landlord.
Releasing and Re-Renting
Once a tenant gets evicted, landlords must find a new tenant to fill the vacancy. This can also come with associated costs. These include property advertising and potential loss of rental income during the search.
How Much Does an Eviction Cost a Tenant?
So, how much does an eviction cost a tenant? The answer to this can vary depending on the factors we mentioned above.
All parties can suffer huge financial losses during these times. This is why it is important to understand your rights and to seek legal help.
Take control of your situation and don’t let an eviction cost you more than it already has. Consider reaching out to a legal aid organization or housing counselor for guidance and support.
And before you go, be sure to read through some of our other helpful posts!