Evicting Commercial Tenants in Massachusetts

Evicting commercial tenants is a different process than a residential eviction, which are more common in Massachusetts. Although commercial evictions often occur through the same court procedure, the underlining law is different.

With the existing eviction moratorium expected to expire in several weeks, commercial evictions will likely resume soon and, given the economic repercussions of COVID-19, be heavily litigated in the months ahead.

Filing a Commercial Eviction Case

Commercial eviction cases are generally through the same eviction process as residential cases, known as summary process. Summary process cases move at a much quicker pace than other civil cases.

Such cases are generally filed in District Court, but may be filed in Superior Court if the owed rent is at least $25,000.

Importantly, commercial evictions may not be brought in Housing Court.

Under Massachusetts law, business entities (ex. corporations, limited liability companies) and trusts must be represented by an attorney in court (except for small claims cases).

As most commercial landlords exist as a business entity or trust, it is important to have an attorney handling the case. Courts can and will dismiss an eviction if a non-attorney attempts to handle it on their own.

Fewer Defenses for Commercial Tenants

Compared to residential evictions, there are far fewer defenses available for tenants in commercial evictions . The law allows landlords to make commercial tenants largely responsible for the care and maintenance of the rented premises. Many laws protecting residential tenants, such as the onerous security deposit law, do not apply to commercial tenancies.

Final Thoughts

Evicting a commercial tenant must be done with care and with knowledge of the applicable laws and summary process rules. If you need assistance with such a matter, contact me for a consultation.

Commercial Evictions in Massachusetts: 5 Things to Know

Commercial evictions in Massachusetts concern property that is not used for human habitation, such as a store or office space. Similar to residential property, an owner of commercial property must bring a formal court action (known as “summary process”) for obtaining possession from a tenant.

This is where the similarities between commercial and residential evictions end. Read on for important information that one should know about commercial evictions in Massachusetts.

No Right to Housing Court for a Commercial Eviction Case

Housing Court is a popular forum for resolving residential property disputes in Massachusetts. A residential landlord is permitted to file an eviction in Housing Court, and if an eviction is filed in another court, either party (tenant or landlord) has the right to transfer it to Housing Court.

Housing Court, however, does not have jurisdiction over commercial evictions in Massachusetts. These cases must be brought in District Court or Superior Court.

Commercial Property Is Often Rented “As Is”, Which Limits the Available Defenses in a Commercial Eviction Case

Residential property comes with an implied warranty of habitability. A landlord can only rent property that is fit for human habitation: a responsibility that cannot be waived. Residential property must also comply with the state sanitary code.

Commercial property, in contrast can (and most often does) get rented “as is.” In such a case, the tenant is generally responsible for the care and maintenance of the property. As such, problems arising from conditions in the rental property are limited as defenses to commercial evictions in Massachusetts.

Commercial Leases Often Require the Waiver of a Jury Demand

Tenants in residential evictions have the right to a jury trial. Most commercial evictions require tenants to waive their right to a jury trial if an eviction case ever becomes necessary. As a result, commercial evictions typically move at a much faster pace than residential cases.

Counterclaims Are Not Allowed in Commercial Evictions

Counterclaims are not allowed in commercial evictions. As such, a tenant defending a commercial eviction is much more limited in the potential defenses they can raise in such a proceeding.

Commercial tenants, however, are free to file a separate lawsuit against a landlord and ask that it be consolidated with the eviction.

Massachusetts’s Security Deposit Law Does Not Apply to Commercial Tenancies

As I’ve written, Massachusetts’s security deposit law is a trap for unwary residential landlords, and can result in steep penalties if violated. This law, however, does not apply to commercial tenancies. A commercial landlord can accept a security deposit without having to comply with the numerous requirements of the residential security deposit law.

Massachusetts’s security deposit law often comes up in residential evictions, and is a problem if the landlord has not followed this law. For commercial evictions, however, this law does not apply.

That’s not to say that a commercial landlord can do whatever they want with a security deposit. Chapter 93A, which prohibits unfair and deceptive business practices, can apply if a commercial landlord acts unreasonably with a security deposit.

Conclusion

If you need assistance with commercial evictions in Massachusetts, contact me for a consultation.