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What Happens When Your SMB Faces Eviction? Understanding Commercial Lease Disputes

For small and mid-sized businesses (SMBs), a commercial lease is more than a real estate contract – it is often the physical foundation of their operations. But what happens when the landlord threatens to evict? Commercial lease disputes can escalate quickly, and Florida law provides clear procedures for both landlords and tenants. As a tenant, understanding your rights can be the difference between protecting your business and being forced out prematurely or unlawfully.

Circumstances Under Which a Landlord CAN Evict Your Business

Florida law governs commercial evictions under Chapter 83, Part I, Florida Statutes. A landlord may initiate eviction proceedings in the following situations:

These eviction actions require court involvement – a landlord must file a formal complaint and cannot remove a tenant using “self-help” methods like changing locks or cutting utilities. (For more, see our blog Unlawful Commercial Evictions: A Cautionary Tale for Commercial Landlords Wanting to Use Self-Help to Retake Possession of Leased Property).

Circumstances Under Which a Landlord CANNOT Evict Your Business

Even if your business falls behind on rent or has otherwise breached the lease, your landlord cannot bypass the legal process. Florida law does not allow landlords to use force or deception to reclaim property.

In Ardell v. Milner, a Florida court sided with a dentist whose landlord changed the locks without a court order. The landlord argued the tenant was not paying rent, but the court ruled that even nonpayment does not automatically give the landlord the right to repossess the property.

A landlord who tries to bypass legal process – by locking out the tenant, cutting off utilities, or otherwise making the space unusable – may be liable for damages. Courts have consistently held that the statutory eviction process is the exclusive remedy for landlords, regardless of the terms of the lease. Even if your lease includes a clause allowing the landlord to re-enter upon breach, Florida law overrides that clause.

If a landlord uses self-help and you lose business or access to important records, you may be entitled to recover monetary damages, lost profits, and even attorneys’ fees. 

Common Defenses Available for Tenants Facing Eviction

If you receive an eviction notice, do not panic – there may be valid defenses available:

  1. Improper Notice: If the landlord failed to provide the required three-day or fifteen-day notice before filing the eviction suit, you can argue that the eviction is premature and should be dismissed.
  1. Rent Was Withheld Lawfully: If your lease requires the landlord to make repairs and they fail to do so, you may be entitled to withhold rent. But be careful: you must first provide written notice, allow at least 20 days for repairs, and state that rent will be withheld until the issue is fixed. This defense only applies if the premises are rendered “wholly untenantable”, meaning unusable for your business.

In Katz Deli of Aventura v. Waterways Plaza, a deli successfully argued constructive eviction due to the landlord’s failure to fix a leaking roof, which led to water pouring into the space. Because the landlord failed to act, the court agreed the space was no longer usable.

  1. Constructive Eviction: Constructive eviction occurs when a landlord’s wrongful actions or neglect force a tenant to abandon the premises. Examples include:

To use this defense, you must leave the premises within a reasonable time. Waiting too long can undermine your claim, as in Bass v. Wollitz, where a tenant stayed for years despite major water intrusion.

  1. Waiver by the Landlord: If your landlord accepts full rent after knowing about a breach (like nonpayment), they may waive their right to evict for that reason. To use this as a defense, you must raise it in your initial written answer to the eviction complaint—otherwise, it’s considered waived.

Related blogs and case analyses:

What If the Property Is Foreclosed?

If your landlord loses the property to foreclosure, you still have rights. Under the federal Protecting Tenants at Foreclosure Act, most tenants are entitled to:

Oral leases or leases without end dates may be terminable at will, meaning you still get the 90-day notice, but no guarantee beyond that. (For more regarding foreclosure, see our blog Protecting Tenants at Foreclosure Act).

What Tenants Should Do When Facing Eviction

  1. Review your lease for notice requirements, repair obligations, and default provisions.
  2. Document all communications and issues, especially related to maintenance or access.
  3. Respond quickly to notices, and do not ignore court filings.
  4. Deposit rent into the court registry if required. Failure to do so can waive your defenses.
  5. Consult a business litigation attorney experienced in commercial landlord-tenant disputes.

Conclusion Eviction can be stressful and disruptive – but Florida law offers protections for tenants, especially when landlords overstep their legal boundaries. If you are facing eviction, act early to understand your rights, preserve your defenses, and protect your business. When in doubt, consult legal counsel who understands both the law and the commercial realities facing SMBs like yours. Contact our team if you would like to schedule a consultation.

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