Do Eviction Moratoriums Apply to Commercial Properties?
But people who rent commercial space are also in trouble, especially if that space was used to house their businesses. In Nevada, for example, landlords can start evicting commercial tenants on July 1.
Here is a comprehensive outline of how eviction moratoriums apply to commercial properties in each of the ten most populous states.
What’s considered a commercial property?
Commercial property is land or a building used to generate a profit.
A local liquor store, retail outlet, medical center are examples of commercial properties.
Some multifamily housing buildings are also considered commercial property. This means that some units are occupied by residents, and other space in the same building is used for commercial property.
One thing that's confusing about eviction moratoriums is that they place an emphasis on property used as housing. Mixed-use buildings could be considered residential, and therefore, subject to more protections, than buildings that are entirely commercial.
What’s an eviction moratorium?
An eviction is the process of removing a tenant from a property. Evictions can be related to lack of proper rent payments, a breaking of lease agreements, damage to property or other concerns.
Eviction laws vary by state. But regardless of where an eviction is happening, a landlord cannot just say, "Get out." The process involves notices, court proceedings and in some cases, law enforcement. A general overview of each state’s eviction laws can be found here.
A moratorium on evictions means a temporary prohibition of removing people from their rentals – whether they are commercial or residential units.
As Covid-19 spreads, many states issued eviction moratoriums for residential properties. Most are less concerned about commercial properties. Here are what some states have said about commercial properties, and the Coronavirus.
California
Commercial tenants cannot be evicted until July 28th, 2020.
The state’s governor, Gavin Newsom, issued an Executive Order that suspended all evictions in the state if the eviction is related to non-payment of rent due to COVID-19 related loss of income until July 28th, 2020.
Florida
Commercial tenants cannot be evicted if non-payment of rent is the issue until July 1st, 2020.
Georgia
Commercial tenants could be evicted as of June 12th, 2020.
Illinois
The state’s governor, J.B. Pritzker, originally only issued a moratorium on residential evictions but later updated it to include all evictions, even commercial. He has since extended these moratoriums.
Michigan
Commercial tenants can be evicted unless they are using their property for residential purposes.
New York
Commercial tenants can be evicted as of June 20th, 2020.
North Carolina
Commercial tenants can be evicted as of June 20th, 2020.
Ohio
Commercial tenant evictions started June 30th, 2020.
The state’s governor, Mike DeWine, issued an Executive Order that requested all commercial landlords suspend evictions and rent payments for small business tenants.
Pennsylvania
Commercial tenants cannot be evicted until July 10th, 2020.
The state’s governor, Tom Wolf, specified in his Executive Order that this moratorium only applies to tenants who have either not paid rent or are staying beyond their lease’s end date. All other lease defaults can result in eviction.
Texas
Commercial tenants can be evicted. The state’s Supreme Court issued an order expiring the state’s original moratorium. While eviction proceedings are now underway, plaintiffs must submit a sworn petition that the property is not included in the CARES Act’s moratorium on evictions. Specifics on the CARES Act’s covered properties can be found here.
If you rent a commercial space and are threatened with eviction, you may want to reach us to us to chat.
This article is intended to convey generally useful information only and does not constitute legal advice. Any opinions expressed are solely those of the author, not LawChamps.
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