What to Do When a Commercial Tenant Stops Paying Rent

 Posted on December 30, 2025 in Commercial Litigation

Very few situations create more stress for commercial landlords than a tenant who stops paying rent. Your mortgage, property taxes, insurance, and maintenance costs don’t magically disappear just because your tenant has financial trouble. And the longer the situation continues, the more money you lose.

The good news is that Illinois law provides landlords with clear remedies when commercial tenants default on their lease obligations. The faster you act, the better protection you give yourself. Our Oak Brook, IL commercial landlord’s attorneys can help you move forward in 2026 so that you can protect your business dealings with the best odds of recovering unpaid rent. 

How Common Is Commercial Rent Delinquency Right Now?

If you are dealing with a tenant who has fallen behind on rent, you are not alone. Commercial rent delinquency has increased substantially in recent years, affecting landlords across all property types.

According to Reggie Booker with the Mortgage Bankers Association, commercial real estate mortgage delinquency rates increased in the third quarter of this year thanks to higher vacancy rates and slower rent growth. 

These numbers reflect real challenges that tenants face, including rising operating costs, inflation, and shifting consumer habits. Understanding why your tenants may be struggling could help you make accurate financial predictions, but it does not pay your bills. Instead, you need to know your legal options.

What Is the First Legal Step When a Commercial Tenant Misses Rent?

Before you can take legal action against a nonpaying tenant in Illinois, you must provide proper written notice. For nonpayment of rent, this means serving a five-day notice as required under 735 ILCS 5/9-209. 

The Illinois Five-Day Eviction Notice

The five-day notice informs the tenant that they have five days to pay all past-due rent or face eviction proceedings. This notice is not optional. If you skip this step or serve the notice incorrectly, any eviction case you file could be dismissed, forcing you to start over and lose additional time.

How Does the Five-Day Eviction Notice Need to Be Served?

Illinois law is specific about how you must deliver this notice. Valid methods include handing it directly to the tenant and sending it by certified or registered mail with a return receipt. Simply posting the notice on the door is generally not sufficient and could invalidate your entire case.

What the Five-Day Notice Must Include

Your notice should clearly state the total amount of rent owed, the time period covered by that amount, and that the tenant has five days to pay in full or vacate. Vague or incomplete notices can create problems later in court.

Can You Lock Out a Commercial Tenant Who Does Not Pay?

It might be tempting to change the locks, shut off utilities, or remove a tenant's property to force them out. Do not do this. Illinois law prohibits landlords from using self-help eviction methods, even for commercial properties.

735 ILCS 5/9-101 prohibits landlords from forcibly entering and removing a tenant from a property. If you take matters into your own hands, you could face liability for damages, and the tenant might have grounds to countersue you regardless of how much rent they owe.

The only legal path to removing a nonpaying tenant is through the court system. After your five-day notice expires without payment, you can file a forcible entry and detainer action in the circuit court where the property is located.

What Else Can Illinois Landlords Do When a Tenant is Late on Rent?

Beyond eviction, Illinois landlords have additional options when a commercial tenant defaults on rent. You may sue for all rent currently due, and depending on your lease terms, you may also be able to recover rent that would have been owed for the remainder of the lease term. Your lease may also entitle you to recover attorney fees, court costs, and other damages related to the default.

If your lease includes a personal guarantee from the business owner, you may have additional avenues to collect unpaid rent even if the business itself cannot pay. Reviewing your lease with an attorney early in the process helps you understand exactly what remedies are available.

Call an Oak Brook, IL Commercial Business Attorney Today

Dealing with a tenant who will not pay rent is frustrating, but acting strategically protects your investment better than acting emotionally. A DuPage County commercial business lawyer for landlords at Lindell & Tessitore, P.C. can help you pursue unpaid rent and protect your property rights. Call 630-778-3818 to discuss your case in an initial consultation.