The government’s moratorium on action against commercial tenants with rent arrears from the pandemic has ended and there is now no opportunity to refer rent arrears disputes to arbitration.

As a result, landlords are now able to take action for non-payment of rent, including the forfeiture of leases, debt claims at court, enforcement agents attending properties, and the service of Statutory Demands.

Without government restrictions, in addition to the cost of living crises and soaring energy bills, such claims are only likely to increase. This means that tenants need to act now to protect themselves.

How can commercial tenants protect themselves against claims from their landlords?



  1. Pay current rents as they fall due each month/quarter

By ensuring your current rent is paid on time, this may protect against the landlord’s ability for forfeit for any existing COVID arrears. Some landlords may not have pursued Covid arrears for some time, but it is not safe to assume that the issue has gone away.

  1. Seek a negotiated solution for COVID arrears

Whilst the safest way to avoid action may be to pay the arrears in full, there remains merit in seeking to reach a commercial settlement with your landlord.  To a landlord, being paid part of the arrears now is often preferred to engaging in lengthy, costly, and uncertain litigation.

  1. Check previous communications

Did your landlord informally agree to a rent deduction/holiday/deferral which can now be referred to? This may fetter their ability to enforce.

  1. Take action now

It’s important to ensure that you take advice from your solicitors and surveyors before any action is commenced, as you may be able to steer a path away from litigation.

  1. Remember, tenants can still take action

If any action is taken by your landlord, you can still take action. For example, if your landlord forfeits the lease, you can apply to court for relief to get your lease reinstated. Take advice from your solicitors if your landlord forfeits by changing the locks or serving proceedings at court.

  1. Look into if you can surrender your lease

Finally, if payment of current rent arrears on an ongoing basis is unlikely to be realistic, consider whether there is an opportunity to break or surrender your lease to stop further liabilities being incurred.

Get In Touch

James specialises in advising on and resolving all aspects of commercial landlord and tenant disputes, regularly involving dilapidations, forfeiture, the contentious aspects of lease renewals, service charge issues and the operation of break clauses.

Written By

Published: 24th January 2023
Area: Rent Disputes - Tenants

How We Can Help

Property Disputes

We’re known as skilled and confident litigators for all types of real estate disputes – We’ll help you weigh up the risks and rewards – and push for the result that makes good business sense.

Rent Dispute Resolution

It’s no secret that commercial rent arrears have surged throughout the last 12 months, and with the Government’s Code of Practice for Commercial Property Relationships published in June 2020, it’s important for both commercial landlords and tenants to be able to negotiate agreements for the future.

Landlord & Tenant Advice

Commercial landlord and tenant issues can seem complicated and baffling. Not to us. Our landlord and tenant solicitors have experience from both perspectives, meaning we can help you avoid the worries of overly intricate negotiations and lease documents. With the assistance of our team, tenancy relationships run smoothly and support the financial interests of both parties.

Our Latest Commercial tenants Updates

Our experts are here to answer any questions you might have

If you’d like to speak to a member of our team, please fill out the enquiry form. We will aim to reply to your query within 2 hours

Need to talk to someone sooner? You can call use at the number below

Call Us: 0330 024 0333