Landlord and tenant disputes – resolving issues in commercial tenancies

Landlord and tenant disputes can arise from a variety of issues ranging from rent arrears to breaches of lease terms. Navigating these disputes requires a clear understanding of the lease agreement and the rights and obligations of the parties. At Fosters Solicitors, we help clients resolve such disputes efficiently and with minimal disruption.

In the commercial property sector of England and Wales, landlord and tenant disputes may involve complex lease structures and high-value interests. Whether it’s a disagreement over rent, service charges, maintenance obligations, or termination/break clauses, it is essential that businesses understand the legal framework governing their tenancy. These issues can impact operational continuity, so resolving them quickly and effectively is crucial.

Common causes of landlord and tenant disputes

Commercial tenancy disputes can stem from a variety of sources. The most frequently encountered issues include:

• Non-payment of rent – Landlords may take legal action to recover arrears or seek forfeiture of the lease.
• Repairs and dilapidations – Tenants and landlords often disagree on responsibility for repairs and the condition of the premises.
• Service charges – Disputes may arise regarding the calculation, reasonableness, or scope of charges.
• Lease renewal – Tensions may occur when a landlord refuses to renew a lease or proposes significantly different terms.
• Break clauses and termination – Whether a break clause is validly exercised is a frequent area of litigation.

Understanding commercial lease agreements

A commercial lease is a legally binding contract outlining the relationship between landlord and tenant. It typically includes terms related to:

• Length of the lease.
• Rent obligations.
• Maintenance and repair duties.
• Rights of access and subletting.
• Break clauses and renewal options.

Disputes often emerge when one party fails to meet their contractual obligations or when the lease terms are ambiguous. Seeking legal advice early is critical.

Legal framework for dispute resolution

In England and Wales, various statutory frameworks govern landlord and tenant disputes, including:

• Landlord and Tenant Act 1954 – Provides security of tenure and outlines lease renewal procedures for business tenants.
• Law of Property Act 1925 – Governs property rights, including forfeiture and assignment provisions.
• Housing and Planning Act 2016 – Includes penalties for rogue landlords and regulates certain aspects of enforcement.

The Landlord and Tenant Act 1954 is especially significant, giving business tenants rights to renew their leases unless explicitly excluded.

Methods of resolving disputes

Disputes can often be resolved without litigation through:

1. Negotiation – Direct discussions between parties, ideally with legal representatives present.
2. Mediation – A neutral third party helps reach a voluntary settlement.
3. Arbitration – A binding process where an arbitrator decides the outcome.
4. Court proceedings – Reserved for cases where no settlement is possible.

The courts generally expect parties to explore alternative dispute resolution (ADR) before proceeding to trial.

Remedies available to landlords and tenants

• For Landlords:
  • Forfeiture of the lease.
  • Recovery of rent arrears.
  • Damages for breach of lease.
• For Tenants:
  • Relief from forfeiture.
  • Claim for breach of quiet enjoyment.
  • Dispute resolution or declaratory relief.

Expert insights

Commercial property solicitors recommend the following to minimise disputes:

• Negotiate clear and fair lease terms from the outset.
• Conduct regular inspections and maintain written communications.
• Keep accurate records of repairs, maintenance, and payments.
• Use professional valuation and surveying services when needed.

At Fosters Solicitors, we have a team of Commercial Property Solicitors who provide expert lease services. Our experienced Litigation & Dispute Resolution team can help support you through all types of property dispute, whether relating to commercial or residential premises.

Contact us for more information.

Benefits and challenges of commercial tenancy disputes

• Benefits:
  • Can clarify rights and responsibilities for future dealings.
  • May lead to renegotiated lease terms.
  • Enables enforcement of legal remedies.
• Challenges:
  • Can disrupt business operations.
  • Often expensive and time-consuming.
  • May strain professional relationships.

FAQs

What are landlord and tenant disputes?

Landlord and tenant disputes are legal disagreements between commercial property landlords and their tenants, often involving rent, repairs, or lease termination.

How can a commercial lease dispute be resolved?

Disputes can be resolved through negotiation, mediation, arbitration, or, if necessary, litigation.

What rights do commercial tenants have?

Tenants have rights under the Landlord and Tenant Act 1954, including the right to lease renewal unless excluded by contract.

Can a landlord evict a tenant from commercial premises?

Yes, but only under specific conditions, such as breach of lease or non-payment of rent, and usually through the process of forfeiture.

What is a break clause in a commercial lease?

A break clause allows either party to terminate the lease early, provided certain conditions are met.

This article was produced on the 1st September 2025 for information purposes only and should not be construed or relied upon as specific legal advice.