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Commercial Litigation Landlord Tenant Law Litigation

COVID-19: Should Landlords Apply Security Deposits to Unpaid Rents?

There are currently several bills in various stages of being passed into law in several states as of early April, which would restrict, on a temporary basis, the eviction of commercial tenants from their leased premises for failure to pay rent, Whether these bills get signed into law and survive judicial scrutiny remains to be seen. The question then is whether a landlord may enforce the security deposit section of its lease and take the deposit should the tenant miss a rent payment.

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Many landlords of shopping centers and other commercial buildings have been asking whether landlords can begin eviction proceedings or exercise other lease or legal remedies now that tenants have missed April rent payments. While there are currently several bills in various stages of being passed into law in several states as of early April, which would restrict, on a temporary basis, the eviction of commercial tenants from their leased premises for failure to pay rent, the current restrictions only apply to residential tenants throughout the country.

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