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  Courts usually apply the same judicial consideration to a dispute of $1 or $50M, whereas for commercial landlords, rent arrears of $1 are bearable, but anything over $50 can be stroke inducing. Often landlords adopt the immediate, aggressive and highly satisfying response of kicking out the tenant, changing the locks and using a security guard to bar the door. There is some fancy legal footwork that the tenant can use to seek relief from forfeiture, but the court will usually not give any such relief if the tenant owes rent and does not repay it before the hearing, which understandably, is not an option for most defaulting tenants. The landlord’s legal and other costs are claimed from the tenant. Like administering electric shock treatment, landlords often find it hard to stop and the blitzkrieg continues with the issue of court proceedings. At that stage, there is an overwhelming urge on the part of the landlord to stop spending money, impose unreasonable, humiliating terms of s...

The first sign that your tenants will stop paying rent is that they will start being nice to you. Treat birthday cards, chocolates and even enquiries as to your health with suspicion.  Landlords may not be universally popular, but they can take comfort in the fact that courts love (or at least don’t dislike) them and hate commercial and retail tenants who cannot pay.  Nevertheless, court actions do cost money, especially if the proceedings are defended, and as much as judges love landlords, they can go all legal.  For instance, they can find that your Notice of Default was defective because: it is not clear enough;  it does not give enough time;  it contains an incorrect important fact or figure;  it is issued to the wrong person; or  it is not served in accordance with the lease.                                                  ...