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  1. #1
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    Default How to Evict a Commercial Subtenant With No Written Lease

    My question involves an eviction in the state of: North Carolina

    We are the sole leaseholder in a commercial space. For the past few years we have shared our space with another business without involving them in any type of written lease or sublease - an arrangement which was approved by the landlord -, our arrangement was entirely verbal.

    The other business is current on their share of the rent, however they have become increasingly uncooperative and our working relationship is no longer sustainable. Additionally, we need the space they occupy to support our growth.

    It is unlikely they will cooperate with any suggestions/requests to leave the premises within 60-days - a reasonable amount of time that has been recommended we offer them - so we anticipate the need to take legal action. How should we proceed from here to ensure that 1) they leave the space within 60-days, and 2) we do not expose our business to any legal risk.

    Thank you in advance.

  2. #2
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    What are the terms of your verbal lease with the subtenant.

  3. #3
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Quote Quoting jk
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    What are the terms of your verbal lease with the subtenant.
    There are no explicit terms regarding eviction. Their presence was originally intended to be temporary arrangement that has continued indefinitely.

  4. #4
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    so:


    What are the terms of your verbal lease with the subtenant.


    You didn't answer the question.

  5. #5
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Has this subtenant paid you rent? If so, how much and how often? There have to be terms. Or did you just say, "sure, you can operate here, you don't have to pay me or anything"? If you want useful advice or commentary you are going to have to disclose more details than you have. There is a reason you need to provide more details. For example, the terms will determine what kind of notice you have to give to terminate the subtenancy. Nobody discusses terms for eviction when they enter into a verbal leasing arrangement. That is not the question and it doesn't matter. The law determines this. So, what were the terms of the verbal lease agreement between you?

  6. #6
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    The only major explicit terms are that the subtenant pay 40% of the monthly rent (including CAM, RE tax, trash, etc.) and utilities. They pay their %age of the rent directly to the landlord.

  7. #7
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Quote Quoting keyissues
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    They pay their %age of the rent directly to the landlord.
    why?

    if they are your subtenant, why would they give any money to your landlord? You are their landlord. You should be receiving the money.

    do you have a written lease with the landlord? Does it give you exclusive control of the entire space?

  8. #8
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Quote Quoting jk
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    why?

    if they are your subtenant, why would they give any money to your landlord? You are their landlord. You should be receiving the money.
    I'm not sure. I was not with the company at the time this arrangement was entered into. I've since asked the subtenant to pay their %age of the rent to us, with us paying the full rent directly to the landlord, but the subtenant refuses.

    Quote Quoting jk
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    do you have a written lease with the landlord? Does it give you exclusive control of the entire space?
    Yes to both questions.

  9. #9
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    keyissues;860825]I'm not sure. I was not with the company at the time this arrangement was entered into. I've since asked the subtenant to pay their %age of the rent to us, with us paying the full rent directly to the landlord, but the subtenant refuses.
    Hold on. What do you mean you were not with the company. What company? You said you were the tenant. Now it sounds like a company you work for is the tenant.

  10. #10
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    Default Re: How to Evict a Commercial Subtenant With No Written Lease

    Quote Quoting jk
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    Hold on. What do you mean you were not with the company. What company? You said you were the tenant. Now it sounds like a company you work for is the tenant.
    No I didn't.

    From my OP:

    We are the sole leaseholder in a commercial space. For the past few years we have shared our space with another business
    To clarify, "we" in my OP refers to the company I'm with - my company is the leaseholder/tenant. The subtenant is also a company, as is the landlord.

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