Eminent domain lets the government take private property for public use, but what happens if you rent instead of own? When landlords lose their property, tenants often face displacement. While landlords receive compensation, tenants must secure relocation funds or negotiate lease buyouts.
Knowing your rights helps you prepare if your rental home or business faces seizure.
Tenant rights in an eminent domain case
When the government takes a property, tenants have legal protections. If you signed a lease, the government must honor its terms or pay compensation for the remaining time. Some leases include eminent domain clauses that outline what happens if the property is taken. Ohio law provides relocation assistance or compensation for moving costs.
Compensation for displaced tenants
Relocation assistance helps tenants cover moving costs. Ohio law provides financial aid for residential tenants to help with rent increases at a new location. Business tenants receive compensation for moving equipment, fixtures, and inventory. However, the law does not guarantee reimbursement for lost profits or business goodwill.
Challenges tenants face
Tenants struggle to secure fair compensation in eminent domain cases. Unlike property owners, they do not receive payment for the land. Finding comparable housing or commercial space at the same price can be difficult. Tenants who understand relocation benefits and negotiate with the condemning authority reduce financial losses.
Protecting your rights as a tenant
If eminent domain affects your rental, check your lease for relevant clauses. Keep records of expenses related to your move, and research relocation assistance programs. Compensation may cover more than just moving costs, including rent differences or business re-establishment expenses.
