An expiration of the lease does not mean that the premises will automatically return to the lessor. In fact, many businesses fall into the situation that the lessee still continues to do business, leaving goods and equipment, not paying the amounts incurred but also refusing to hand over. The longer it lasts, the more the lessor loses the opportunity to exploit the property, incurs management costs and faces pressure to "get back" the premises themselves.
The problem is not only whether the enterprise has the right to reclaim the premises or not, but more importantly, how to exercise that right so as not to turn itself from the infringed party to the party with risky legal acts.
One of our recent settlements shows that the tenant continued to occupy the premises after the contractual relationship was determined to have been terminated, while there was a significant payment backlog. The party with the right to manage the site has repeatedly sent official dispatches, worked directly and set a deadline for handover but failed results, then had to prepare a detailed and complex reception plan with the participation of lawyers, bailiffs and related subjects.
The problem is not only whether the enterprise has the right to reclaim the premises or not, but more importantly, how to exercise that right so as not to turn itself from the infringed party to the party with risky legal acts.
The expiration of the contract is not the end of the dispute
According to the Civil Code, a lease of property is an agreement whereby the lessor assigns the property to the lessee for use for a period of time and the lessee must pay the rent. When the lease term ends, the lessee is obliged to return the leased property in a condition in accordance with the agreement, except for natural wear and tear or other contents approved by the parties. However, the right to request the return of the premises is only clear when the enterprise proves three issues.
First of all, it is necessary to prove that they are the subjects who have the right to receive the premises back. The requesting party may be the owner, the main lessee entitled to sublease, the unit assigned to manage the property or other entities with legal rights under the contract. In sublease, co-exploitation or service-based structures, the presentation of a third party's certificate of ownership may not be enough to prove that the requesting enterprise is the person who has the right to directly receive the property back.
Next, it must be proven that the tenant's right to use has actually ended. The contract may expire according to the date stated in the document, be terminated early due to a violation, or not renewed. However, if after the expiration date, the lessor still issues rent invoices, receives money regularly, continues to provide services or exchanges in the direction of agreeing to use, the lessee can invoke these acts to assume that the relationship between the two parties is still continuing.
Finally, it must be proven that the handover has been requested but the lessee has not done so. Official dispatches, emails, working minutes, certified delivery notices, delivery minutes, and messages between competent persons can all become important evidence. The longer the dispute lasts, the more the quality of the evidence dossier determines the position of the enterprise.
Therefore, the first question should not be "how to lock the premises door", but "whether the existing records are sufficient to prove the right to reclaim the premises or not".
Avoid accidentally renewing the contract by your own behavior
One of the common mistakes is that the lessor both insists that the contract has expired and continues to refer to the amounts incurred afterwards as "rent" or "contractual service charges". This representation can create inconsistencies: if the contract has been terminated, what is the basis for continuing to charge the contract?
Enterprises need to clearly classify receivables. Money missing before the expiration date of the contract is a debt under the contract. Electricity, water, management or operating costs incurred thereafter must be determined according to the actual documentation. Amounts arising from the lessee's continued use of the premises after the lease has been terminated may be claimed on the basis of reimbursement of benefits, damages, reasonable costs or mechanisms envisaged by the contract, but should not be arbitrarily called the rent of a contract that the enterprise also affirms is no longer valid.
If the lessor has previously requested or agreed to consider an extension, the final written request should state that the parties failed to sign the renewal agreement and that the negotiation process did not give rise to the right to continue use. Continuing to exchange to resolve disputes is also not considered as a waiver of the right to reclaim the premises.
This is not just a matter of words. Consistency in how a business defines its legal relationship can directly affect the scope of the lawsuit request and the tenant's ability to counter it.
The final dispatch must be a pre-procedural record
Before filing a lawsuit, the business should submit a final written request. This document should not have just a few lines of notice that the contract has expired. It needs to be constructed as a collapsed pre-proceedings file.
The official letter must first determine the origin of the lessor's rights to the premises; contracts, annexes or agreements permitting the lessee; time and grounds for termination; the process of the two sides having exchanged; times of requesting handover; the tenant's response or silence.
After that, the business must separate the obligations. The obligation to hand over the premises should not be included in the payment obligation. The lessee cannot use the reason that it is negotiating debts to continue to hold the premises, nor should the lessor make payment the only condition to be handed over.
The final requirements must be sufficiently specific: date and time of handover, representative involved, status of the premises, keys and access control devices, documents to be delivered, deadline for relocation of assets, amount to be paid, basis for calculation, account to receive money and focal point for confirmation. The official letter should also request the lessee to appoint a competent person to participate in the handover.
For debts, enterprises should attach a comparison table showing each period, invoice, due date, paid amount and remaining amount. An unexplained aggregate number can feel tough, but it's easy to refute in litigation.
At the same time, the document needs to reserve the right to request late payment interest if there are grounds, compensation for damages, reasonable costs and other legal measures. In particular, it should be clearly stated that continuing negotiations does not mean extending the lease period or exempting the obligation to hand over.
Can I unlock myself and take the tenant's property out?
This is the biggest risk boundary.
Businesses often think that the contract has expired, they have the right to change the lock, cut off the electricity, take the goods out or let another unit take over. But the right to reclaim property does not mean the right to organize self-coercion by all means.
If the premises are still controlled by the lessee, there are still assets, records, goods or equipment inside, arbitrarily entering, moving or causing loss of property may give rise to disputes over compensation. The risk increases if the assets belong to a third party, are being pledged, leased, deposited, or have important business data.
The presence of the police, local authorities or bailiffs also does not automatically turn a self-organised activity into legal coercion. Local agencies may participate in ensuring order or recording incidents within the scope of their functions, but do not replace effective judgments and decisions and judgment enforcement processes.
Bailiffs can make micro-certificates to record actual events and behaviors that they directly witness. However, a micro-certificate is a source of evidence, not a permit to open a door, move property, or certify that the entire lessor's behavior is legal. Therefore, if inviting a bailiff, the appropriate content is to record the current status of the premises, the assets present, the delivery and receipt of notices, the presence or absence of the parties and the progress of the working session.
In case the lessee voluntarily hands over, the enterprise can receive it on the basis of a clear record. If the tenant objects, locks the door, or denies access, the safe bet is usually to turn to litigation rather than trying to create a unilateral "handover".
When the negotiation is no longer effective, the enterprise can initiate a lawsuit to request the lessee to return the premises, pay debts, pay interest on late payment if eligible, and compensate for damages.
Suing is not only to ask for money
When the negotiation is no longer effective, the enterprise can initiate a lawsuit to request the lessee to return the premises, pay debts, pay interest on late payment if eligible, and compensate for damages.
Damage should not be determined emotionally. Enterprises need to prove the relationship between the delay in handover and actual losses, such as losing the opportunity for a new partner to hire, having to compensate a third party, incurring protection, management or repair costs. New contracts, offer letters, expense documents, and conversations with potential customers can be more valuable than a general statement that the business is "severely damaged."
In the course of the proceedings, if there is a risk that the lessee will change the current status, dismantle the equipment, transfer the disputed property or cause irreparable damage, the enterprise may consider requesting the Court to apply appropriate temporary emergency measures. The selection of measures must be based on the actual situation, the scope of the dispute and the security obligation set forth by the procedural law.
After the judgment or decision takes effect, the forced handover of the premises shall be carried out through the judgment enforcement agency according to statutory procedures. This is the state coercion mechanism, which is different in nature from the lessor mobilizing personnel to get back the property.
Risk management must start from the signing of the contract
Disputes over premises are often seen as a matter of handling after the contract ends. In fact, most of the risks have been formed from the date of signing.
The contract should clearly stipulate the procedures for handover upon expiration, the time of relocation, the status of return, the responsibility for the abandoned property, the amount of money to be paid during the delay in handover, the obligation to compensate, the right to inspect the current status, the address to receive the notice and the method considered to have been validly delivered.
Businesses should also have a mechanism to remind them to expire several months in advance and ask the tenant to confirm the plan to renew or leave. If the extension is agreed, a clear document must be signed before the old term ends. If not renewed, any subsequent invoices, correspondence, and minutes must be consistent with the position that the right to use has ended.
The deposit also needs to be designed to cover not only the obligation to pay but also the obligation to hand over, repair damage and relocate the property. However, the deduction of the deposit must be based on the basis of the contract and documentation, which cannot completely replace the right to claim compensation or reimburse the premises.
Reclaiming ground is a legal process, not a confrontation
When the tenant deliberately fails to pay the premises, the natural reaction of the business is to want to act quickly. But the more hurried, the easier it is for businesses to create a new dispute about property, order, damage or how to approach the premises.
An effective solution must follow a controlled sequence: verify the right to the property, finalize the time to terminate the contract, standardize the debt, keep evidence, submit the final request, organize the voluntary handover if possible, and promptly initiate a lawsuit when necessary.
What businesses need to get back is not only the key to the premises. Enterprises must also maintain their legal position. A site that is quickly regained but by a risky method can open the door for many years of disputes; Conversely, a well-prepared process can make the tenant realize that continuing to occupy is no longer a beneficial tactic.
