Breach of covenant disputes

One of the most frequent issues landlords face. If your tenant is behind on rent, it can disrupt your cash flow and jeopardise your business. You have several legal remedies to recover the arrears or take possession of the property.

If a tenant sublets your property without permission or makes alterations without your approval, they may be in breach of the lease. Protecting your rights as the property owner is essential, especially when changes could lower the property’s value or create additional liabilities.

Tenants are often required to keep the property in a good state of repair. If they neglect these obligations, it could cause significant deterioration to your property, leading to costly repairs.

In cases of serious breaches, you may have the right to forfeit the lease, which effectively means ending the tenancy and taking possession of the property. This can be a powerful remedy, but it must be handled carefully to avoid any claims from the tenant.

If your tenant has fallen behind on rent, legal proceedings can be initiated to recover the outstanding payments. The court can also order the tenant to pay interest on the arrears and reimburse your legal costs.

If your tenant has made unauthorised modifications or is subletting without permission, an injunction can be sought to prevent further breaches. The court may also order the tenant to restore the property to its original condition.

In situations where the breach has caused financial loss, you can seek compensation from the tenant for any damages incurred.

Your lease may give you the right to sublet or assign the property, subject to your landlord’s consent. However, if your landlord unreasonably withholds or delays this consent, they may be breaching the terms of the agreement. This can hinder your ability to make business decisions, such as moving to a more suitable premises or restructuring your company.

Most commercial leases require the landlord to insure the property and ensure that it’s properly protected. If your landlord fails to maintain the required insurance coverage, you could face significant financial risks in the event of damage to the property, which may disrupt your business.

Many commercial leases place the obligation to repair or maintain certain parts of the property on the landlord, particularly for structural repairs. If your landlord neglects these duties, the property’s condition can deteriorate, potentially affecting your business operations and the safety of your staff and customers.

If your landlord refuses to give consent for subletting or assignment without a valid reason, you can apply to the court for permission. The court can override the landlord’s decision if it’s found to be unreasonable, allowing you to proceed with your business plans.

When a landlord’s failure to fulfil their obligations causes you financial loss, you may be entitled to claim damages. For example, if the landlord’s failure to insure the property results in business interruption or damage, you can seek compensation for your losses.

If your landlord fails to carry out essential repairs or maintenance, you may seek an injunction from the court. This would compel the landlord to fulfil their obligations and carry out the necessary work. In some cases, you may also be able to arrange the repairs yourself and recover the costs from the landlord.

In more severe cases, where the landlord’s breaches have significantly impacted your business or made the premises unfit for use, you may be able to terminate the lease. This can free you from ongoing obligations under the agreement and allow you to move to more suitable premises.