Commercial Landlord and Tenant Disputes: How to Navigate Issues and Preserve Relationships

Commercial landlord and tenant relationships are often long-term and commercially valuable. A reliable tenant is gold dust for a landlord, just as a supportive and pragmatic landlord can be invaluable to a business tenant. When things work well, both sides benefit from stability, certainty and mutual trust.

However, disputes can and do arise. Changes in trading conditions, differing interpretations of lease terms or unexpected costs can quickly strain even strong relationships. The key is knowing how to navigate disputes effectively, protect your legal position and, where possible, preserve the working relationship.

At Salehs Solicitors, our Commercial Litigation team regularly advises both landlords and tenants across Manchester and the North West, helping them resolve disputes with a commercial and practical approach.

Why Commercial Relationships Matter

Unlike residential lettings, commercial leases are often bespoke, complex and tied closely to business success. A breakdown in the relationship can have serious financial and operational consequences for both parties.

For landlords, a good tenant provides:

• Consistent rental income

• Long-term occupation and reduced void periods

• Better care of the property

For tenants, a good landlord offers:

• Stability and certainty for business planning

• Willingness to engage constructively when issues arise

• Flexibility during challenging trading periods

  
  

Because so much is at stake, disputes should be handled carefully and strategically.

 

Common Causes of Commercial Landlord and Tenant Disputes

Most disputes stem from misunderstandings or disagreements over lease obligations. Some of the most common issues include:

Breaches of Lease Obligations

Both landlords and tenants have ongoing responsibilities under a lease. Disputes often arise where one party believes the other has failed to comply, such as:

• Failure to repair or maintain the property

• Unauthorised alterations or changes of use

• Breach of covenants relating to assignment or subletting

Early legal advice can help clarify whether a breach has occurred and what remedies are available.

Break Clauses and Disputes

Break clauses are a frequent source of conflict. They are often subject to strict conditions, and even minor non-compliance can invalidate a break.

Common issues include:

• Disagreement over whether conditions have been met

• Timing errors when serving notice

• Outstanding rent or compliance with repair obligations

  
  

Both landlords and tenants benefit from legal guidance well in advance of exercising or responding to a break clause.

Dilapidation Disputes

Dilapidations claims commonly arise at the end of a lease, but can also occur during the term.

Typical disputes relate to:

• The scope of repair obligations

• The cost and extent of remedial works

• Whether claims reflect actual loss

  
  

Handled poorly, dilapidations disputes can escalate quickly. A proportionate and evidence-led approach is often key to resolution.

Rent and Service Charge Disputes

Disputes over rent arrears, service charges and insurance costs are increasingly common, particularly during periods of economic uncertainty.

Issues often include:

• Whether charges are properly recoverable under the lease

• Lack of transparency or supporting documentation

• Disagreements over reasonableness of costs

  
  

Clear communication and early intervention can often prevent these disputes from becoming entrenched.

Termination of Tenancies

Termination can be contentious, whether through forfeiture, break clauses or lease expiry. Mistakes at this stage can be costly and, in some cases, irreversible.

Legal advice is essential to ensure the correct process is followed and rights are preserved.

Practical Steps to Managing Disputes Constructively

While not every dispute can be avoided, many can be resolved without damaging the wider relationship. Key principles include:

• Acting early rather than allowing issues to escalate

• Understanding your rights and obligations under the lease

• Keeping communication clear, professional and documented

• Taking a commercial view rather than a purely legal one

Alternative dispute resolution methods, such as negotiation or mediation, can often deliver faster and more cost-effective outcomes than court proceedings.

A Balanced, Commercial Approach to Landlord & Tenant Disputes

Whether you are a landlord seeking to protect an investment or a tenant trying to safeguard your business premises, the goal is often the same: resolve the issue efficiently while preserving value.

At Salehs, we understand the importance of maintaining good commercial relationships wherever possible. Our Commercial Litigation team takes a pragmatic approach, combining legal expertise with an understanding of the commercial realities facing both parties.

Speak to Salehs’ Commercial Litigation Team

If you are experiencing a commercial landlord or tenant dispute, or if tensions are starting to arise, early advice can make all the difference.

A timely conversation with the Salehs Commercial Litigation team can help you understand your options, protect your position and work towards a sensible resolution that supports your long-term interests.