When Commercial Tenants Default: Legal Strategies for Landlords in Kansas and Missouri
A commercial lease default can place landlords in a difficult position, often forcing them to make fast decisions that can have lasting legal and financial consequences. Whether the default is due to non-payment of rent, abandonment of the premises, unauthorized subletting or failure to maintain insurance, landlords need to understand their rights, obligations, and remedies under the lease and the law.
In the Kansas City area — where jurisdiction may fall under either Kansas or Missouri law depending on the property’s location — landlords must also be aware of the key legal distinctions between states. A skilled real estate attorney can help navigate these differences and craft a strategy that protects the landlord’s interests while minimizing disruption.
Step 1: Review the Lease Agreement
The lease is your roadmap. Begin by thoroughly reviewing its default provisions to determine:
- What constitutes a default
- What notice (if any) is required before enforcing remedies
- The time period the tenant has to cure the default
- The remedies available to the landlord, including termination, reentry or recovery of damages
Many leases contain a “grace period” for late payments or a requirement that the landlord give written notice of default with a specific cure period. Landlords who act before satisfying these notice requirements risk claims of wrongful eviction or breach of contract.
Step 2: Communicate with the Tenant
It’s often beneficial to open a line of communication with the tenant before proceeding with legal action. In some cases, the default may be temporary or unintentional — such as a clerical error or cash flow timing issue. Discussing the issue may lead to an informal resolution, such as a temporary rent deferral or payment plan.
If the tenant appears uncooperative or has abandoned the premises, you may need to proceed directly to enforcement.
Step 3: Serve a Notice of Default and Demand for Cure
If informal discussions fail, the next step is to serve a formal notice of default. In both Kansas and Missouri, the lease often governs the notice procedures, but landlords should be cautious about strict compliance. This notice should:
- Specify the nature of the default (e.g., non-payment, violation of use clause)
- Reference the relevant lease provision
- Give the tenant a specified time to cure (if required)
Failure to follow the proper procedures may limit the landlord’s ability to later recover damages or regain possession.
Step 4: Decide Whether to Terminate or Enforce
Once the notice and cure period has expired, landlords must decide how to proceed. You generally have two options:
- Terminate the Lease
If the lease allows, you can declare it terminated and demand that the tenant vacate the premises. You may then:
- Repossess the property
- Re-let the space
- Seek damages for unpaid rent and costs to re-lease
Note that commercial landlords are typically expected to mitigate damages by making reasonable efforts to re-let the premises.
- Continue the Lease and Sue for Rent
In some cases, you may wish to keep the lease in effect and sue the tenant for unpaid rent as it comes due. This may be appropriate if the tenant has not abandoned the premises or if the lease specifically allows for ongoing rent collection.
Landlords may also want to explore whether the tenant has other real property interests or collateral that could be pursued. In these cases, creditor’s rights become a key area of strategy, especially if the tenant is insolvent or considering bankruptcy.
Step 5: Repossession and Eviction
If the tenant does not voluntarily vacate, you will need to initiate formal eviction proceedings. Missouri and Kansas have different procedures and timelines for commercial evictions, and mistakes in the process can delay repossession or expose the landlord to liability.
For example, in Missouri, landlords must typically file an unlawful detainer action, whereas Kansas allows for a forcible detainer proceeding. Each state also handles post-eviction damages and possession of abandoned property differently.
This is where having legal counsel familiar with commercial leases/disputes and local eviction laws is crucial.
Step 6: Consider Additional Claims or Liens
If the tenant has failed to pay for improvements or services related to the leased premises, other third parties — such as contractors or suppliers — may file a mechanic’s lien, adding another layer of complexity to the dispute. Landlords should monitor for such filings, especially if tenant improvements were part of the lease deal or buildout.
Moreover, landlords themselves may have a lien or claim for possession of the tenant’s personal property under state law or the lease. However, these rights must be carefully exercised to avoid claims of conversion or wrongful seizure.
Landlords involved in a construction dispute/mechanic’s liens context should coordinate with legal counsel to ensure all notices and filings are properly handled.
Step 7: Plan for the Future
Once possession is regained and the immediate financial issues are resolved, landlords should use the experience as an opportunity to review and strengthen their leasing practices:
- Include stronger default and remedy provisions
- Require personal guarantees for small or high-risk tenants
- Conduct more rigorous credit checks
- Establish clearer timelines for rent escalation and notice delivery
In some cases, a lease default may also trigger broader legal concerns, especially if the property is subject to development pressures or government acquisition. For example, landlords facing the possibility of eminent domain may need to evaluate how a tenant default affects valuation or negotiation with government entities.
Final Thoughts
Commercial lease defaults are never convenient, but they can be managed effectively with a clear strategy, proper documentation, and sound legal guidance. Whether you are dealing with a tenant who has fallen behind on rent, abandoned the premises, or triggered a construction dispute, knowing your rights — and acting quickly — can prevent a bad situation from becoming worse.
Because your legal options can vary significantly depending on whether your property is located in Kansas or Missouri, working with a real estate attorney who understands the nuances of local law is essential. An attorney experienced in commercial leases/disputes, creditor’s rights, and related areas like mechanic’s liens or eminent domain can help you protect your investment and move forward with confidence.