Washington State Commercial Landlord Legal Options During COVID-19
During these unprecedented times, Washington State commercial landlords have faced and are continuing to face great difficulty while the State and local eviction moratoriums remain in place. Although commercial eviction related activities are prohibited until Governor Inslee’s orders expire on March 31, 2021, commercial landlords still have alternative remedial options to address tenant nonpayment and lease violations.
Here are 5 options and our recommendations for commercial landlords:
Maintain open communication with tenants – Try to understand the financial position of the tenant and, likewise, give the tenant a better understanding of your position as a landlord. Speak with the tenant and ask them to communicate their difficulties and potential rent issues so you can navigate the situation together.
Negotiate a payment plan with tenant for past-due rent – Tenants have different financial situations, so payment arrangements for past-due rent should be tailored to the tenant’s ability to pay. Once the payment plan has been established, put it in writing with clear details and time frames.
Modify the lease – Determine if there are terms of the agreement which can be changed for the benefit of both the tenant and landlord. Common examples include lease term modification, rent abatement, rent reduction, and rent deferral.
Evaluate the tenant’s situation (and location) to determine if an eviction moratorium exception exists – Under the current eviction moratoriums, eviction is prohibited unless a tenant poses a significant and immediate risk to health, safety, or property and/or engages in criminal activity on the rental property.
Consider filing a lawsuit for breach of contract (not an eviction) – While this option would not remove the tenant from the space, it could put you as the landlord in a better position to collect back rent and remove the tenant once the moratoriums have concluded.
While these are some of H+G’s recommendations for commercial landlords, each individual must analyze what is best for their situation on a case-by-case basis. Landlords should reach out to their legal counsel to ensure they are complying with the terms of their lease agreements and all landlord-tenant laws, including the then existing eviction moratoriums (if applicable), to avoid delays and additional damages. This information is intended for educational purposes only, not legal advice. If you are a commercial landlord interested in exploring your options, please reach out to our office for legal advice based on your situation.
