All Forum Posts by: Michael S.

You’ll need to compare local lease rates; totally depends on where you are.

NNN is the way to go for sure. TI allowances will be around $50/sf to the tenant if you build a shell space so figure for that. Commercial is very different so consider the loss of efficiency by trying to figure out a very different busyness for only a couple of tenants - it'll absorb quite some time (different laws, different leases, different marketing, etc)

Also you’ll want to consider how you’ll break apart the utilities etc if it’s combined with the residential can be tricky.

I purchased a commercial office building this year that was poorly managed. The tenants were on month-to-month leases for years and had very little if any deposits. After renovating the building for the last few months we noticed the tenants on October 4th that their month-to-month agreements would term on November 30th (so nearly 60 days notice). One of the tenants, without providing their contractual 30 day notice, abandoned their space on November 2nd and have not paid rent. They have no deposit to offset. I reached out to them prior to their late rent date, letting them know they were approaching a late rent fee. I then noticed them about the late fee, and then delivered their 3-day default notice on the 7th.

My question is it seems like proceeding with an eviction (unlawful detainer) doesn't make sense as they've already vacated. Should I still follow that process or is there a more appropriate process to follow to collect the last months rent and late fee for a tenant that has abandoned the property?

I purchased a commercial office building this year that was poorly managed. The tenants were on month-to-month leases for years and had very little if any deposits. After renovating the building for the last few months we noticed the tenants on October 4th that their month-to-month agreements would term on November 30th (so nearly 60 days notice). One of the tenants, without providing their contractual 30 day notice, abandoned their space on November 2nd and have not paid rent. They have no deposit to offset. I reached out to them prior to their late rent date, letting them know they were approaching a late rent fee. I then noticed them about the late fee, and then delivered their 3-day default notice on the 7th. 

My question is it seems like proceeding with an eviction (unlawful detainer) doesn't make sense as they've already vacated. Should I still follow that process or is there a more appropriate process to follow to collect the last months rent and late fee for a tenant that has abandoned the property?