How Can a Commercial Lessor in Florida Recover Funds when the Tenant Wont Pay

How Can A Commercial Lessor In Florida Recover Funds When The Tenant Won’t Pay?

Published On: January 21st, 2019Last Updated: January 21st, 2019Categories: Business, Commercial, Hard Money, Investment Properties, Leases, TenantsTags: , ,

Are you about to become a commercial lessor in Florida? Congratulations! You should know that a Florida statute (F.S. § 83.08) gives commercial lessors a statutory remedy for missed rent payments. The statute allows the lessor to put a lien against property on the leased premises.  Eventually, almost all lessors are forced to deal with tenants failing to pay rent. You don’t just have to accept the missed rent as a loss though. The statute allows commercial lessors in Florida the automatic right to get a lien on all property within the premises owned by the tenant.

Now, it doesn’t mean you can just storm in and seize property. Obviously, there’s a process for the actual property seizure. In order to enforce the lien, lessors just have to file a “distress for rent” complaint to start the proceedings to actually seize the tenant’s property in an effort to cover the cost of missed rental income.

This is one time when a lease is especially important. The statutory remedy is only available during the period of time written in the commercial lease agreement. Some lessors make a lease agreement for one year, and then assume that the business would prefer to stay put and fail to have the tenants sign another lease. Lessors should remember that when the lease if over, the statutory remedy of a lien is no longer an option.

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