Commercial Real Estate Disputes
My Commercial Tenant Stopped Paying Rent. What Are My Options in Texas?
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Short answer
A Texas commercial landlord whose tenant stops paying rent can send a default notice, change the locks under Property Code § 93.002, file an eviction suit for possession in justice court, sue for unpaid and future rent in county or district court, and pursue anyone who signed a personal guaranty. The lease decides the order: it sets the grace period, whether notice and a cure period are required, and whether remaining rent can be accelerated. The goal decides the tool. If the space is worth more re-let, possession comes first. If the tenant is solvent and the market is soft, the money claim and the guaranty matter more.

Start with the lease, not the statute
Every option below is shaped by the lease. Before doing anything, find and read these clauses: the rent due date and any grace period; the definition of default and whether a written notice and a cure period are required before the default is complete; the remedies section, including lockout, re-entry, termination, acceleration and reletting; the notice clause, which says where and how notices must be sent; the attorney's fee clause; and the guaranty, if one was signed. A landlord who skips a required notice or sends it the wrong way can lose an otherwise clear case.
Also check the ledger. Confirm exactly what is unpaid, whether any late fees are charged the way the lease allows, and whether earlier late payments were accepted without objection. A pattern of accepting late rent can be argued as a waiver of strict compliance unless the lease has a non-waiver clause, and most do.
Option one: a written default notice and demand
The first step in nearly every case is a written notice of default that tracks the lease: it names the missed payments, cites the lease section, states the cure period if there is one, and says what happens next. Send it exactly as the notice clause requires, usually certified mail or overnight courier to the notice address, and keep the proof.
This notice does three jobs. It completes the default under the lease, it starts any cure clock, and it is the first exhibit in any later suit. Where the lease requires it, it is also the trigger for a guarantor's liability. A demand letter from counsel can be combined with it.
Option two: change the locks
Texas allows a commercial landlord to change the door locks of a tenant who is delinquent in paying at least part of the rent, without going to court first. Property Code § 93.002(c)(3) permits it, and § 93.002(f) requires the landlord to post a written notice on the front door giving the name and an address or phone number where a new key can be obtained. The landlord must provide the key only during the tenant's regular business hours and only if the tenant pays the delinquent rent. The lease can modify these rules.
A lockout is fast and inexpensive, and it often produces payment within days. It also carries risk. A lockout that is done when the tenant is not actually delinquent, or without the required notice, or that goes further than changing locks (cutting utilities the tenant pays for, removing doors or fixtures, seizing equipment) exposes the landlord to the tenant's actual damages or one month's rent or $500, whichever is greater, plus attorney's fees, and the tenant can regain possession through a writ of reentry from the justice court. The full set of rules is in whether a commercial landlord can lock out a tenant in Texas.
A lockout does not end the lease or collect the debt by itself. It changes the tenant's incentives. A landlord who wants the space back for good still needs a termination under the lease or an eviction judgment.
Option three: evict
An eviction suit, called forcible detainer, asks the justice court for a judgment of possession. The landlord must first give written notice to vacate. Property Code § 24.005 sets the default at three days, and for a tenant whose only default is nonpayment and who was not late before that month, the notice must be a notice to pay rent or vacate. The lease may set a shorter or longer period. The suit is filed in the justice court for the precinct where the property sits, and the court decides possession only: it cannot rule on title and does not hear counterclaims.
Since January 1, 2026, Chapter 24 and Rule 510 of the Texas Rules of Civil Procedure provide for a sworn petition, a possible summary disposition without trial when the facts are not genuinely disputed, a trial within 10 to 21 days when they are, and a five-day window for either side to appeal to county court, where the case is tried again from the start. The steps and timing are in how commercial eviction works in Texas.
Eviction gets the landlord possession with a court order behind it, which matters when the tenant is still operating, has valuable equipment on site, or is likely to claim a wrongful lockout. The justice court can award rent only up to the limit Rule 510 allows for a joined rent claim; larger money claims go to a separate suit.
Option four: sue for the rent and damages
The money claim is a breach of contract suit in county court at law or district court, depending on the amount. What the landlord can recover depends on the lease and on one statute that overrides it.
- Past-due rent, late charges and interest as the lease provides.
- Future rent. If the lease allows acceleration, the landlord may claim the rent for the rest of the term, reduced to present value in most leases. If the lease instead has the landlord terminate and relet, the measure is the difference between the contract rent and what reletting brings in, plus reletting costs.
- Mitigation. Under Property Code § 91.006 a landlord must mitigate damages when a tenant abandons the premises in violation of the lease, and a lease clause waiving that duty is void. In practice the landlord must show reasonable efforts to relet, and the tenant may try to prove the landlord could have done more. How that plays out is covered in must a commercial landlord mitigate damages after a tenant leaves.
- Attorney's fees under the lease, or under Chapter 38 of the Civil Practice and Remedies Code for a breach of contract claim that meets its requirements.
The suit must be filed within four years of the breach under Civil Practice and Remedies Code § 16.004. Each unpaid installment is usually treated as its own breach for that purpose, but the practical advice is to decide quickly, because evidence and collectability both fade.
Option five: the guarantor
If an owner or parent company signed a personal guaranty, the landlord can usually sue the guarantor together with the tenant or separately. A guaranty must be in writing and signed under the statute of frauds, and Texas courts read it strictly in the guarantor's favor, so its exact scope matters: whether it covers the whole term or a fixed amount, whether it survives amendments and renewals, and whether it ends when the tenant surrenders in good standing. The details are in personal guaranties on commercial leases.
Choosing among the options
| Goal | Usual first move | Main risk |
|---|---|---|
| Get paid quickly, keep the tenant | Default notice, then lockout if the lease allows | Lockout error creates tenant damages claim |
| Get the space back to relet | Notice to vacate, eviction suit | Appeal delays possession; money not collected |
| Recover the full loss from a solvent tenant | Damages suit, with the guarantor | Mitigation reduces recovery; time and cost |
| Tenant has failed, assets gone | Guaranty claim; secure deposit and any contractual lien | Guaranty limits or defenses |
Example
Suppose a Fort Worth landlord leases 6,000 square feet of flex space to a logistics company for five years. In month 20 the tenant pays half the rent, in month 21 nothing. The lease has a five-day grace period, a 10-day written cure period, acceleration and a personal guaranty from the owner capped at 12 months of rent. The landlord sends the cure notice by certified mail on day six. The tenant does not cure. The landlord now has a completed default. Because the market for flex space is strong, possession is worth more than a long collection fight. The landlord posts the § 93.002 notice and changes the locks, which brings the owner to the table within two days. The parties sign a termination agreement: the tenant surrenders in 30 days, the landlord keeps the deposit, the owner pays six months of rent under the guaranty over a year, and the landlord releases the rest once the space is relet. No lawsuit is filed. That outcome was available because every step followed the lease.
Mistakes that cost landlords
- Locking out a tenant whose default is something other than rent. Section 93.002 permits a lockout only for delinquent rent.
- Sending the default notice to the premises when the lease names a different notice address.
- Accepting partial rent after the notice to vacate without a written reservation of rights.
- Removing or selling the tenant's property without following the lease and the abandoned-property rules in § 93.002(e).
- Leaving the space dark for months with no marketing, then claiming the full remaining rent.
- Telling the tenant the lease is terminated and then suing for future rent as if it were not.
When to bring in a litigator
Before the lockout and before the notice to vacate. Those two steps are where the lease, § 93.002 and Chapter 24 have to line up, and a mistake at that stage either hands the tenant a claim or sends the landlord back to the start. A litigator can also tell the landlord whether the tenant and guarantor are worth suing, and can structure a payment plan or termination agreement so that a later default is easy to enforce. Tina Wysk represents commercial landlords and tenants in lease disputes in Dallas-Fort Worth; the firm's real estate litigation practice handles lease defaults from the first notice through judgment and collection.
Questions on this topic
How long do I have to wait before acting on unpaid commercial rent in Texas?
As long as the lease says, and no longer. Texas has no statutory grace period for commercial rent. If the lease has a grace period or a notice-and-cure clause, the default is not complete until those run. If the lease has neither, the tenant is in default the day after rent is due, though most landlords still send a written notice to start a clean record.
Can I lock out a commercial tenant and also sue for the rent?
Usually yes. A lockout under Property Code § 93.002 is a possession remedy and does not by itself waive the money claim, and most leases state that remedies are cumulative. Check the lease for an election-of-remedies clause, and keep the notice on the door and the key available as the statute requires so the lockout itself is not challenged.
Can I accelerate the rest of the lease when a commercial tenant defaults in Texas?
Only if the lease allows it. Texas enforces acceleration clauses in commercial leases, but the landlord still must mitigate under Property Code § 91.006 when the tenant has abandoned the premises, so the accelerated amount is reduced by what reasonable reletting produces. Many leases also require the accelerated rent to be discounted to present value.
What if the tenant offers a payment plan?
Put it in writing, with a reservation of rights. A written forbearance agreement can set the schedule, confirm the amount owed, keep the default and the guaranty alive, and state that one missed payment lets the landlord proceed without a new notice. Accepting partial payments informally risks an argument that the landlord waived the default.
Do I need a lawyer to file a commercial eviction in Texas?
Not in justice court. Rule 510.3 lets an individual appear personally or through an authorized agent, and lets a corporation or other entity appear through an owner, officer, employee, property manager or other authorized agent. A landlord that expects an appeal, a separate suit by the tenant, or a lockout dispute is usually better served by counsel from the first notice, because the county court appeal is a full new trial and the money claims are filed elsewhere.
Sources
- Tex. Prop. Code § 93.002 (lockout for delinquent rent, front-door notice, key during business hours, tenant remedies, abandoned property)
- Tex. Prop. Code ch. 24 (§ 24.005 notice to vacate and pay-or-vacate form; § 24.004 justice court jurisdiction; § 24.005106 summary disposition; § 24.005107 appeal)
- Tex. R. Civ. P. 510 (2026) (eviction procedure, rent claim joinder limit, appeal and trial de novo)
- Tex. Prop. Code § 91.006 (duty to mitigate; waiver void)
- Tex. Civ. Prac. & Rem. Code § 16.004 (four-year limitations period for debt and contract claims)
- Tex. Civ. Prac. & Rem. Code § 38.001 (attorney's fees on a claim for an oral or written contract)
Legal sources last checked November 6, 2026. Statutes and rules change; the date matters.
This guide is general information about Texas and federal law for business owners, not legal advice about your situation. Statutes, rules and court decisions change, and small facts change outcomes. Reading it or contacting Tina Wysk through this site does not create an attorney-client relationship.

