A commercial landlord in Nevada operates under a different body of law than a residential one, and the differences run in the landlord's favor. NRS Chapter 118A does not apply to commercial premises. Habitability obligations, the retaliation statute, the three-month deposit ceiling, and the seven judicial day pay-or-quit period all belong to residential tenancies alone. What governs instead is NRS Chapter 118C, a short chapter of 15 sections, plus the commercial provisions scattered through NRS Chapter 40, plus the lease itself.
That last item carries more weight than most owners realize. NRS 118C.200(6) states that a lease supersedes that section to the extent of any conflict, and NRS 40.2542 applies unless otherwise agreed in writing. In a Nevada commercial tenancy, the lease is the operative law on most questions, and the quality of the drafting determines the quality of the remedy.
This article covers what a Nevada commercial landlord can do when a business tenant stops paying or otherwise breaches, which remedies are self-executing and which require a court, and where the traps sit. If a tenant in one of your commercial properties is in default, the commercial lease attorneys at Hutchison & Steffen, a full-service, AV-rated law firm with nearly 60 attorneys serving Nevada and the Southwest; can advise you on the fastest lawful route to possession. Call 702.385.2500 in Las Vegas or 775.853.8746 in Reno, or reach the Firm at hutchlegal.com/contact.
NRS Chapter 118C applies only to the relationship between landlords and tenants of commercial premises, which NRS 118C.040 defines as any real property other than the residential premises covered by NRS 118A.140. NRS 118A.180 confirms the boundary from the other direction: Chapter 118A reaches only a dwelling unit or the structure it belongs to.
Why Commercial Tenancies Are Governed by Different Rules
For a commercial landlord, the protections a residential tenant relies on are absent. There is no warranty of habitability under NRS 118A.290 and no presumption of retaliation under NRS 118A.510. The security deposit is uncapped and carries no 30-day itemization deadline, because NRS 118A.242 does not reach commercial premises, and neither does the unlawful lockout remedy in NRS 118A.390. Chapter 118C substitutes a narrower set of tenant protections, and the lease can override several of them.
The tradeoff is that Chapter 118C is thin. It has no landlord's lien statute, which surprises owners who assume Nevada gives them a statutory claim on a defaulting tenant's inventory and equipment. It does not. Any lien on a commercial tenant's personal property in Nevada has to be created contractually in the lease and, to have real priority, perfected as a security interest under Article 9. That is a drafting decision, and it has to be made before the default rather than after it.
The Notice Periods for a Commercial Default
Commercial notice periods in Nevada are shorter than residential ones and they are calendar days rather than judicial days. For nonpayment of rent, NRS 40.2512(1)(a) sets the period at five days for commercial premises, compared with seven judicial days for residential property. That is a meaningful difference in practice, because a commercial five-day period can expire over a weekend.
For a breach of lease other than rent, NRS 40.2516 applies to real property generally, which includes commercial premises, and gives the tenant five days to cure. The notice must be in the alternative: perform or surrender. And the statute carries the same provision residential landlords sometimes miss. Where the violated covenant cannot afterward be performed, no notice need be given at all.
NRS 40.2514 supplies a three-day notice with no cure period where the tenant assigns or sublets contrary to the lease, commits or permits waste, carries on an unlawful business on the premises, maintains a nuisance, or violates Nevada's controlled substance statutes. Its text reaches a tenant of real property, so it is available in the commercial context.
Service is governed by NRS 40.280 in the same way it is for residential notices. The landlord may not serve these notices personally. Service must be by the sheriff, a constable, a licensed process server, or the agent of a Nevada-licensed attorney, and proof of service has to be filed before the court will issue an order to remove.
The Commercial Lockout Under NRS 118C.200
Nevada gives commercial landlords a limited self-help lockout right that residential landlords do not have, and it carries conditions that are easy to miss. Under NRS 118C.200(3), a landlord may change the door locks of a tenant delinquent in paying at least part of the rent, but only after providing the tenant with written notice of the delinquency and of the landlord's intent to change the locks, sent by certified mail with return receipt requested, at least three days before the locks are changed.
Each element of that notice matters. Certified mail with return receipt requested is the method the statute names, and three days must actually elapse before the locks change. NRS 118C.200(4) adds a second obligation: upon changing the locks, the landlord must post written notice on the front door naming the individual who will provide a replacement key, available during the landlord's regular business hours, on payment of the delinquent rent.
The consequences of skipping a step are concrete. Under NRS 118C.200(5), a tenant excluded in violation of the section may recover possession or terminate the lease, and may also recover actual damages, plus one month's rent or $500, whichever is greater, plus reasonable attorney fees and court costs, less any delinquent rent the tenant owes. The tenant's procedural route is fast: NRS 118C.210 lets the tenant file a verified complaint for reentry in justice court, post a bond equal to one month of rent, obtain an ex parte temporary writ of restitution, and be heard between the first and fifth judicial day after issuance. A landlord who ignores the writ is in contempt.
NRS 118C.200 also bars a commercial landlord from interrupting utility service the tenant pays directly to the utility, and from removing doors, windows, locks, or furnishings except for bona fide repair or replacement promptly completed. Construction, bona fide repairs, an emergency, and removal of contents from premises the tenant has abandoned are the recognized exceptions to the exclusion rule.
Commercial Summary Eviction Under NRS 40.2542
Nevada has a separate summary eviction statute for commercial premises, and it is narrower than the residential one. NRS 40.2542 was added in 2019, when Senate Bill 151 removed commercial premises from NRS 40.253 and gave commercial tenancies their own track. The critical limitation: NRS 40.2542 reaches nonpayment of rent only.
The mechanics differ from the residential process in four ways. The statute applies unless otherwise agreed in writing, so the lease can alter it. The tenant's deadline to file a contesting affidavit is at or before noon of the fifth full day following the day of service, or the fourth full day for a short-term tenancy. Service requires the landlord to attempt personal delivery in the presence of a witness, and if that fails, to post conspicuously and mail by overnight mail before delivering to the sheriff or constable, who must serve within 48 hours. And removal happens within 24 hours after the officer receives the order, with none of the 24-to-36-hour posting window that applies to residential lockouts.
Everything else has to go through a formal action. NRS 40.254, the summary track for holdovers, no-cause terminations, and lease-covenant breaches, applies only to dwelling units, public housing, mobile homes, and recreational vehicles. A commercial holdover or a commercial breach of lease must be brought as an unlawful detainer action under NRS 40.290 through NRS 40.420. That is a fuller proceeding with pleadings, a right to jury trial under NRS 40.310, and a longer calendar.
Nevada courts have shown they will police the line. In Anvui, LLC v. G.L. Dragon, LLC, 123 Nev. Adv. Op. 25 (2007), the Nevada Supreme Court reversed a commercial summary eviction because ambiguous lease language about the landlord's default remedies raised a genuine issue of material fact amounting to a legal defense, which meant the landlord had to proceed under the formal statutes instead. Ambiguity in a default clause converts a two-week remedy into a multi-month lawsuit.
Where the Case Gets Filed, and Why Owners Should Split the Claims
NRS 118C.220 sets a jurisdictional rule that is genuinely useful to a commercial landlord. Justice court has jurisdiction over an action concerning exclusion of a commercial tenant or summary eviction of a commercial tenant in which no party is seeking damages. If the landlord combines summary eviction with a claim to recover contractual damages, jurisdiction shifts to the court that has jurisdiction over the amount in controversy.
The provision that makes this workable is NRS 118C.220(3). Neither NRS 40.430 nor res judicata nor collateral estoppel bars a landlord's contractual damages claim brought after a summary eviction, or a summary eviction brought after a damages claim. A Nevada commercial landlord can take possession quickly in justice court and then sue for unpaid rent, holdover damages, and the cost of restoring the premises in district court, without the first proceeding extinguishing the second.
That sequencing decision should be made deliberately. Recovering the space fast preserves its value and lets the owner re-let. Chasing possession and money in a single action is often slower and, where the tenant is a going concern with assets worth pursuing, more expensive than it needs to be.
Damages, Mitigation, and Lease Clauses That Do Not Survive
A Nevada commercial landlord suing on a breach of lease is bringing a breach of contract claim, and the ordinary contract rules apply. The written lease carries a six-year limitation period under NRS 11.190(1)(b). Expectation damages are the measure, and consequential damages are recoverable only where they arose naturally from the breach or were reasonably contemplated by both parties when the lease was signed, the Hadley v. Baxendale standard Nevada adopted in Conner v. Southern Nevada Paving, Inc., 741 P.2d 800 (Nev. 1987).
Mitigation is the argument a defaulting tenant will make. Conner holds that a party cannot recover for a loss it could have avoided through reasonable efforts, and that the duty begins when the breach is discovered. Nevada places the burden of proving a failure to mitigate on the breaching party, but a landlord who documents genuine re-letting efforts closes the issue and one who documents nothing invites it.
Liquidated damages clauses in commercial leases are vulnerable in Nevada, and for a reason that catches owners off guard. Such a provision is prima facie valid under Mason v. Fakhimi, 109 Nev. 1153, 1156, 865 P.2d 333, 335 (1993), and the party challenging it carries the burden. The threshold question is what defeats it: Khan v. Bakhsh, 129 Nev. 554, 558, 306 P.3d 411, 414 (2013) confines liquidated damages to situations where contractual damages are uncertain or immeasurable, and a rent stream is neither. The Firm's article on breach of contract lawsuits in Nevada covers the wider damages framework these claims are litigated under.
Guaranties deserve a separate look before a default becomes a lawsuit. A promise to answer for the debt or default of another is void under NRS 111.220(2) unless it is in writing and subscribed by the guarantor. Owners frequently discover at the worst moment that the personal guaranty they relied on was never signed, or was signed by someone without authority, or was released by a lease amendment nobody circulated to the guarantor.
Abandoned Property Left Behind by a Commercial Tenant
When a commercial tenant leaves inventory, fixtures, or equipment behind, NRS 118C.230 controls the disposal, and the timeline is specific. The landlord must send notice of intent to dispose by certified mail with return receipt requested to the tenant at the tenant's present address, or the last known address if the present one is unknown, and 14 days must elapse from mailing before the property may be disposed of.
The landlord may charge the reasonable and actual costs of inventory, moving, and safe storage before releasing the property. Vehicles go through the separate procedure in NRS Chapter 487. Disputes over the amount of those costs are resolved under the NRS 40.2542 procedure. And, consistent with the rest of Chapter 118C, a contract between the landlord and the owner of the property supersedes the statute.
Getting this wrong turns a recovered space into a conversion claim. Where a tenant's equipment has real value, the 14-day clock and the certified mail requirement are worth following exactly, even when the tenant has clearly walked away.
What to Fix in the Lease Before the Next Default
Because Nevada lets the commercial lease override much of Chapter 118C and NRS 40.2542, the terms of the lease decide what remedies a landlord actually has when a tenant defaults. A commercial lease attorney reviewing a portfolio form will look hardest at the following provisions:
- A default and remedies clause with no internal ambiguity, given that Anvui turned on exactly that defect
- An express contractual lien on the tenant's personal property, since Nevada supplies no statutory one, backed by a UCC-1 filing where the collateral justifies it
- A written personal or corporate guaranty that satisfies NRS 111.220(2), with a clause preserving the guaranty through amendments and extensions
- A damages provision that recovers actual unpaid rent, holdover rent, and restoration costs rather than a liquidated figure that Khan v. Bakhsh puts at risk
- An attorney fee provision, because Nevada follows the American Rule and fees are recoverable only by statute, rule, or agreement
- Notice provisions that state addresses, method, and effective date, so a lockout notice under NRS 118C.200 is not litigated on delivery
Most of these provisions cost nothing to include at signing and cannot be added once a tenant is already in default.
How Hutchison & Steffen Represents Nevada Commercial Landlords
Hutchison & Steffen is a full-service, AV-rated law firm serving Nevada and the Southwest from offices in Las Vegas and Reno. For nearly three decades the Firm has represented owners, landlords, and property managers in evictions, lease disputes, and unlawful detainer actions, and has handled the commercial litigation that follows when a defaulting tenant has assets worth pursuing. The Firm works the owner's side of these matters through its Landlord/Tenant practice and its Business Law and Commercial Litigation practice.
Commercial tenancy disputes rarely stay contained. The Firm also handles Nevada real estate matters, corporate and commercial transactions including the lease and guaranty drafting that prevents these disputes, and creditor's rights matters when a defaulting tenant files bankruptcy. Owners who also hold residential rental property should read the companion guide to Nevada landlord-tenant law and the NRS 40 eviction process. Owners considering a negotiated exit rather than a contested proceeding can review the Firm's article on when to mediate a legal dispute or its alternative dispute resolution practice. Entities restructuring how they hold commercial property may find the article on Nevada LLC formation and asset protection useful, and owners reviewing their coverage should read the Firm's article on a common trap in commercial insurance policies. You can also meet the attorneys who handle these matters or review all practice areas.
Frequently Asked Questions About Nevada Commercial Lease Disputes
Can a Nevada Commercial Landlord Lock Out a Tenant Without Going to Court?
Yes, within limits. NRS 118C.200(3) permits a commercial landlord to change the locks on a tenant delinquent in paying at least part of the rent, but only after written notice of the delinquency and of the intent to change the locks, sent by certified mail with return receipt requested, at least three days in advance. The landlord must then post notice on the front door identifying who will provide a replacement key on payment of the delinquent rent.
How Many Days Is a Commercial Pay-or-Quit Notice in Nevada?
Five days under NRS 40.2512(1)(a), and they are calendar days rather than the judicial days that apply to residential property. Residential tenants get seven judicial days under NRS 40.2512(1)(b). A commercial landlord should confirm the lease does not extend the period, because a written agreement can alter the default rule.
Does Summary Eviction Apply to Commercial Property in Nevada?
Only for nonpayment of rent, and only under NRS 40.2542. Senate Bill 151 removed commercial premises from NRS 40.253 effective July 1, 2019 and created the separate commercial track. A commercial holdover or a breach of a lease covenant other than rent has to be brought as a formal unlawful detainer action under NRS 40.290 through NRS 40.420.
Does a Nevada Commercial Landlord Have a Lien on the Tenant's Equipment?
Not by statute. NRS Chapter 118C contains no landlord's lien. Any lien on a commercial tenant's inventory, fixtures, or equipment in Nevada has to be created in the lease itself and, for priority against other creditors, perfected as a security interest under Article 9 of the Uniform Commercial Code.
How Long Does a Nevada Commercial Landlord Have to Sue for Unpaid Rent?
Six years for a written lease under NRS 11.190(1)(b). Under NRS 118C.220(3), a claim for contractual damages is not barred by an earlier summary eviction, so a landlord can recover possession first and pursue the money afterward without losing the damages claim.
Contact Hutchison & Steffen About a Commercial Lease Dispute
If a business tenant in one of your Nevada properties has stopped paying, breached a covenant, or held over past the term, Hutchison & Steffen can advise you on which remedy fits and handle the matter from notice through judgment and collection. The Firm represents commercial landlords in Las Vegas, Henderson, Summerlin, North Las Vegas, Reno, Sparks, Carson City, and statewide Nevada.
Las Vegas: 702.385.2500 | Reno: 775.853.8746 | hutchlegal.com/contact
Las Vegas: Peccole Professional Park, 10080 W. Alta Drive, Suite 200, Las Vegas, NV 89145. Reno: 100 W. Liberty Street, Suite 765, Reno, NV 89501.
This post is for general informational purposes only and does not constitute legal advice. Commercial lease disputes turn on the specific language of the lease and the facts of the default, and the outcome of any matter depends on its own circumstances. Prior results do not guarantee a similar outcome. Consult a qualified Nevada attorney about your situation.
