When a tenant of a commercial premises, office, or residential property within your real estate portfolio stops paying rent, the financial impact can be significant — it affects cash flow and delays the recovery of the property if swift action is not taken.
In Spain, the law provides clear procedures for claiming unpaid rent, whether it concerns a single lease or property managers with multiple rental units or entire portfolios of homes and commercial premises, as long as the preliminary and judicial steps are properly followed.
This practical guide explains how to legally claim unpaid rent on corporate properties through to the enforcement stage, and how the assistance of a lawyer specialized in rent non-payment cases can help speed up the recovery of both the property and the outstanding rent.
Key differences between commercial and residential leases
For a company with multiple rental properties, it is essential to understand that claiming unpaid rent differs depending on whether the lease concerns commercial premises or residential dwellings. Understanding these distinctions helps determine how to claim unpaid rent with a greater chance of success.
In commercial leases, contracts tend to be more flexible and governed by the parties’ agreements. Clauses such as termination for non-payment, inclusion of additional guarantees, or bank guarantees are crucial to expedite any legal action and ensure the effectiveness of the claim.
When the landlord is a company that rents out several residential units, the Spanish Urban Leases Act (LAU) imposes certain extensions, but it is still possible to initiate a payment order or eviction process to protect the investment and regain possession. This combination of commercial and residential regulations requires a tailored legal strategy.
If the tenant is another company, it is even possible to claim the debt directly from the company’s directors when fraud or bad faith can be proven — a particularly relevant measure for large landlords or property management firms seeking effective recovery of unpaid rent.
In all cases, the best way to recover rent and regain control of the property is to thoroughly review each contract, whether it concerns a single commercial unit or an entire residential portfolio. Having specialized legal support ensures that any subsequent action to recover unpaid rent will be faster and more effective.
Steps to claim unpaid rent in corporate properties
Before initiating a legal procedure for unpaid rent in corporate properties, it is advisable to exhaust the extrajudicial route to avoid unnecessary costs and strengthen the landlord’s position if the case goes to court. The usual course of action is as follows:
- The first step is usually to send a burofax or reliable notice demanding the unpaid rent, which, in addition to requiring payment, will serve as key evidence in a potential eviction or debt claim. If the tenant is a company, the notification is sent to the entity and, if applicable, to its directors to establish proof of the debt.
- From there, the tenant has the deadline established in the contract or, failing that, a minimum of 30 days to settle the debt. In commercial leases, deadlines may be shorter, while in corporate housing leases, the LAU allows the process to begin once the term expires.
- In many cases, reaching a negotiation or professional mediation can avoid litigation, either through installment payment agreements or voluntary handover of the property, saving costs and speeding up property recovery for asset managers or large property holders.
If, despite these efforts, the tenant continues to default, the next step is to turn to the judicial route, selecting the most effective legal procedure to claim unpaid rent and recover possession of the property or property portfolio.
What to do when the previous steps do not work: legal channels for claiming unpaid rent
When amicable requests and mediation do not succeed, it becomes essential to activate the judicial route to recover rent from a corporate property or a property portfolio and protect the investment. The choice of procedure will depend on the amount owed, available documentation, and the complexity of the case:
- 1. Payment order procedure for commercial leases
Ideal when the debt is liquid and properly documented. It is quick and, although legal representation is not required at the initial stage if the amount does not exceed €6,000, having legal advice to streamline the process and plan the course of action can ensure a more favorable outcome.
- 2. Oral or ordinary proceedings (depending on the amount involved)
Recommended when, in addition to payment, damages are claimed or contract clauses are disputed. It allows obtaining a judicial resolution supporting the claim for unpaid rent.
- 3. Eviction proceedings against a tenant in arrears
The most common route, allowing recovery of the premises and the claim of unpaid rent in a single process.
- 4. Launch of the commercial premises
Once the judgment is issued, the date for forced eviction is set if the tenant does not voluntarily hand over the keys.
At this stage, having the support of lawyers specialized in debt recovery and/or civil and commercial law is almost essential. Even in procedures under €6,000, where it is legally possible to start without a lawyer, it is enough for the tenant to oppose the claim or for other items to be included for it to become mandatory to have a lawyer and solicitor. Therefore, it is highly advisable to have legal advice from the outset, even in lower-value cases, to design the most effective strategy and ensure that every legal step is correctly executed.
Precautionary measures and securing actions
While the legal proceedings for unpaid rent in corporate properties are ongoing, the landlord may request precautionary measures to ensure rent collection and prevent the tenant from depleting their assets before judgment. The most common measures include:
- Preventive seizures of the tenant’s bank accounts or assets.
- Registry annotations limiting or preventing the sale of assets belonging to the debtor company.
- Retention of deposits or guarantees if agreed upon in the lease contract.
Applying these measures allows the landlord to act more securely and reduces the risk that the debtor company (or even an individual, in the case of large holders with multiple dwellings) attempts to avoid payment. This way, the investment is protected, and the recovery of unpaid rent is facilitated, providing peace of mind throughout the judicial process.
Execute the sentence and effective recovery
After obtaining a favorable ruling, the sentence execution phase begins, ensuring that the debt is effectively collected. At this stage, various actions are carried out for the recovery of unpaid rents, particularly valuable for owners with multiple rental apartments or large corporate property holders:
Thanks to these actions, the owner can recover the rent of a commercial property or a portfolio of residential units even when the debtor company tries to delay payment or empty its assets.
Prevention: solid contracts and solvency control
Beyond resolving a conflict, the best way to avoid a commercial rent default is to prevent it from the start. A well-drafted contract and prior verification of the tenant’s solvency will minimize risks and any subsequent legal action. Key recommendations:
- Include clear jurisdiction clauses, remedies for non-payment, and payment deadlines.
- Request bank guarantees or personal guarantees to back the lease, especially in commercial leases or for large holders with multiple properties.
- Assess the tenant’s solvency before signing and anticipate potential difficulties.
Even if there have been no defaults, having a lawyer specialized in commercial leases is a preventive measure, as they can help draft or strengthen contracts and guarantees, protecting your property against future risks.
Frequently Asked Questions
If the tenant does not oppose, the commercial property can be evicted in 4–6 months. With opposition, the process may extend up to a year, depending on the court’s workload.
In eviction procedures for delinquent tenants and in claims for rents exceeding €6,000, it is mandatory, and for amounts over €2,000, the intervention of a legal representative is required. Beyond complying with regulations, having a lawyer from the start ensures the process is managed correctly and speeds up the recovery of owed rents.
Yes, damages can be included in the claim if property damage or losses resulting from non-payment are proven: compensation for deterioration, business losses, or any financial harm suffered.
If the leasing company has liquidity problems or is at risk of insolvency, precautionary measures such as preventive seizure of accounts or registry annotations can be requested. As lawyers specializing in unpaid rents, we can guide you on the best ways to recover commercial property rent without unnecessary complications.
To avoid commercial rent non-payment, include clauses for termination due to non-payment, require guarantees, and assess the tenant’s solvency. We recommend a legal review of the contract by a specialized lawyer to help reduce risks and facilitate future claims in case of breach.
Free lawyer consultation – Lawyer specializing in rent defaults
At BUFET GÓMEZ FERRÉ we offer a free and confidential initial consultation with our litigation lawyers in Barcelona, specialists in commercial rent defaults and recovery of unpaid rents of any scale, with over 25 years of experience.
We can help you assess your case, design a personalized strategy, and guide you on how to act quickly to maximize the chances of a favorable outcome.
Our law firm operates under a success-fee model, adjusting fees to the success of the procedure and the individual circumstances of each client. For more information about our specialized services in debt recovery and how to ensure collection of your rents, do not hesitate to contact us.