Commercial Landlord and Tenant Disputes
For commercial properties, common disputes are around:
- Non-payment of rent– this can be due to cashflow problems or a misguided attempt to bring the landlord to the table to make repairs or negotiate.
- Sub-letting– many companies who are downsizing want to sub-let the space they are no longer using. Landlords are wary of this and the impact that their property being rented at sub-market rates might have.
- Service charges– these charges can cause issues, especially for the retail sector where shopping centre charges are very high.
- Break clauses– Landlords are keen to ensure that the tenant has complied with all the contractual terms governing their right to leave a property early. The landlord might use any error in the execution of that break clause to refuse to allow the tenant to exit the property with litigation to follow.
- Dilapidations– This is a common cause of dispute. The tenant is obliged to return the property to its original state when leaving. Often the tenant has made numerous changes to, and usually upgraded, the property. However, if the property is not returned to its original state the landlord may use this to withhold their deposit.
- Lease Assignment– This occurs when the tenant wants to leave and pass their lease on to someone else. This is problematic for the landlord if he thinks the new tenant is not as financially strong as the original one.
The Resolution
Seeking early specialist advice and placing together a measured strategy is normally the key to obtaining the most favourable outcome. Our solicitors have extensive experience in providing composed legal advice to partners, landlords, tenants, trustees and representing them in negotiations and/or legal proceedings.