Commercial Landlord & Tenant Disputes

Landlord and tenant disputes can arise from various issues related to the lease agreement, property conditions, financial matters, and personal interactions such as;

• Rent payment disputes including late or missed payments and rent increases;
• Security deposit issues;
• Property maintenance and repairs;
• Lease agreement violations;
• wanting possession of a unit;
• Quiet enjoyment disputes;
• dilapidations;
• Noise and nuisance complaints;
• Lease renewal and termination;

Preventing disputes between landlords and tenants from escalating requires proactive communication, clear agreements, and a mutual understanding of rights and responsibilities. The following can help maintain a harmonious relationship and avoid conflict;

• A clear lease with transparent policies and comprehensive terms;
• Open communication including regular updates and an accessible way to contact;
• Prompt maintenance repairs with regular inspections and in a timely manner;
• Provide notice of any entrance necessary in a timely manner;
• Conflict resolution policy outlining a procedure for handling disputes.

When lease breaches occur in landlord and tenant rent disputes, there are several legal remedies available for both parties.

For landlords this could include forfeiture, monetary damages, remedial works to property, security deposit deduction or injunctive relief to prevent action – depending on the breach,

For tenants this could include court orders requiring the landlord to perform specific actions such as repairs or comply with lease terms, monetary damages such as the return of the security deposit or compensation, termination of the lease or rent abatement if the property becomes uninhabitable due to conditions such as lack of heat or water.

A landlord may terminate a lease agreement due to a tenant’s breach of its terms, such as non-payment of rent or unauthorised property use. The process typically begins with the landlord identifying a breach and reviewing the lease agreement to ensure it contains a forfeiture clause allowing termination under specified conditions. The landlord may also need to provide the tenant with written notice, detailing the breach and a period to remedy it. If the breach is not rectified within the specified time frame, the landlord may proceed with forfeiture, which may involve obtaining a court order to regain possession of the property or to change the locks. It is essential for landlords to follow legal procedures meticulously to avoid wrongful eviction claims and potential liability.

A tenant can challenge a landlord’s decision to terminate a lease if they believe the termination is unjustified or improperly executed. A tenant may argue that no lease term was breached or that the alleged breach was remedied within the allowed period. Tenants can also contest the termination if the landlord did not follow the legal procedures required for forfeiture, such as providing proper notice. In these circumstances, tenants may seek to resolve the dispute through mediation or defend themselves in court if legal action is pursued by the landlord.

Break clauses in commercial leases allow landlords or tenants to terminate the lease early, typically after a specified period, by providing written notice within a defined timeframe without facing a penalty.

For tenants, they offer flexibility to relocate or adjust to changing business needs but usually come with conditions such as paying all due rent and meeting lease obligations. For landlords, they provide an opportunity to re-evaluate tenant arrangements, though they must consider potential income loss and the property’s condition upon tenant exit.

If a commercial tenant owes you rent, start by reviewing the lease agreement to understand your rights and any specified procedures for dealing with non-payment. Communicate with the tenant to discuss their financial situation and negotiate a payment plan if feasible. If the tenant is unresponsive or unwilling to pay, you may issue a formal demand for payment or consider mediation to resolve the issue. As a last resort, you maybe able to obtain possession of the property.

If you cannot pay rent on your commercial property, you should review the lease agreement to understand any relevant clauses and obligations, then communicate proactively with the landlord to discuss the situation and negotiate temporary relief options, such as a rent reduction, deferral, or payment plan. You may also with to explore government assistance programs or loans that support businesses during financial hardship.

If these efforts fail, you may consider exercising a break clause, or seeking legal advice to explore further options, such as lease renegotiation or mediation, to avoid eviction or litigation.

If a tenant is refusing to pay rent despite having the financial means, start by reviewing the lease to ensure they have no legitimate grievances, such as maintenance issues, that could justify their reasons for withholding payment. Communicate with the tenant to understand their reasons and attempt to resolve any underlying disputes amicably. If the tenant continues to refuse payment without a valid reason, you can issue a formal demand for payment, highlighting the lease terms and potential consequences of non-compliance.

A company voluntary arrangement (CVA) is an agreement between a company and its creditors to restructure debt and allow the business to continue operating while repaying creditors over a specified period.

If your tenant enters into a CVA, it could impact your contract by altering the terms of rent payments or reducing the amount owed. As a landlord, you might have to accept reduced payments or changed lease terms, and any existing arrears might be included in the CVA. A CVA requires approval from creditors, making it essential to assess how the proposed terms will affect your financial interests and legal rights.