Commercial vs. Residential Evictions: Key Legal Differences Explained

While both commercial and residential evictions proceed through the Housing Court of New York City, the two processes differ in important ways. A landlord who seeks to initiate an eviction must understand the rules of court, available defenses, and how to proceed with intentionality to achieve their desired result. 

Tenant Protections Are More Robust Under Residential Lease Agreements

Residential tenants in New York City are afforded many protections- such as rent stabilization, retaliatory eviction prohibitions, and various warranties that are typically not included in commercial lease agreements. 

For example, commercial tenants cannot stop their rent payments because their landlord has failed to live up to their end of a lease agreement. When the landlord does not repair a broken item, that does not give the tenant the legal right to stop paying rent- unless the lease agreement specifically states that the tenant gains this right in a particular circumstance. In other words, the rented space does not need to be habitable for a tenant to be obligated to pay rent. 

Commercial Leases Matter – Look to the Agreement During a Dispute

When a commercial tenant and the property owner or landlord are involved in a dispute, the lease agreement itself will determine the outcome of the case. State and local laws governing the landlord/tenant relationship are less important. In matters of eviction, the landlord and the tenant need to lean on the agreement- for better or worse.

However, one defense available to commercial tenants in the event of a dispute is to request an injunction from the New York Supreme Court. This defense is available in situations where the tenant has been accused of defaulting on the lease agreement. Commonly, a tenant may be accused of failing to provide theagreed-uponn upkeep and care for their unit or leased space. The injunction would be the tenant’s response to a Notice to Cure provided by the landlord or property owner. 

Known as a “Yellowstone” injunction, this defense mechanism stops the cure period in its tracks. A landlord is effectively unable to terminate the lease during the period where a judge will determine whether a default of the lease terms happened. The Housing Court of New York City tends to move its cases quite quickly. On the other hand, the Supreme Court of New York is known for a much more deliberate pace for its cases. This is to the advantage of a tenant. 

“Self Help” Evictions: Forbidden in Residential Evictions, Complicated in Commercial Settings

A “self-help” eviction relates to a landlord’s ability under a commercial lease to take possession of a property without going to court first. It is not a method that a residential landlord can legally employ. Commercial landlords must be careful about how and when a self-help eviction is utilized. A lease agreement that specifically allows a landlord to retake property in the event of a default is the basis for any self-help eviction.

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A New York City commercial and residential evictions lawyer, Knox Law Group puts clients first. Contact our office today for a free case review.