One of the many buildings that Larry Landlord has in his repertoire is a four-unit commercial property that boasts Psychic Salutations as one of his tenants. Sally, the mastermind of Psychic Salutations, has been a faithful tenant for about three years now. She dutifully pays her rent on time, minds all of Larry's restrictions and even provides him a free reading every now and then when he is feeling blue.
Larry notices while paying the water bill for his property one day that there is a strange spike in the amount of water usage on the property. He does a little bit of investigating around the property that morning and hears what sounds like a shower in the back of Sally's unit. Larry knocks on Sally's door later that afternoon to question her about what he heard. Sally breaks down and says, "I knew you were coming. I am having a tough time and now living in the unit. I sense you will be trying to evict me..."
Q: Can Larry evict Sally?
A: Unfortunately for Sally, her psychic abilities are correct and Larry can evict her for transforming the commercial property into a residential space. Intrinsic to every commercial lease is a clause that states the property is to be used for a specific legal purpose. Odds are, using a commercially zoned property for residential use is not legal or prescribed in her lease agreement. If Larry takes pity on Sally, he could be opening up a legal "can of worms" in terms of liability. Larry can and should evict Sally for failing to abide by the terms of her lease agreement.
Q: What if Larry lets her stay there for just a little bit longer until she gets back on her feet?
A: Larry may be opening himself up to a waiver defense if he feels kind-hearted and continues to allow Sally to stay on the property with knowledge that she is living on the property. Sally can argue that she detrimentally relied on Larry's kindness and thus he forfeited his right to evict her on the grounds that she is living there. Lucky for Larry though, there is a high likelihood the court will still rule in his favor because most commercial leases have a no-waiver clause.
If you have a commercial property and would like to make sure the lease provides adequate protection, contact The Rad Firm at 310-461-3766 to review your lease agreement.
