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What if my Tenant does not repair my Commercial Property?

In commercial property leases, there are usually provisions which require the Tenant to carry out certain repairs to the Property. But what happens if a Tenant has caused damage to a Landlord’s commercial premises and but do not repair the damage? Our Commercial Property Solicitors discuss the options below.

Damage to a commercial property is usually a breach of the Covenant to Repair contained within the Lease, entered into by the Landlord and Tenant. Of course, not every Lease is the same, and so we suggest that if you’re unsure you get it reviewed.

In these instances, a Landlord has a number of options in order to remedy this situation which will include:

  • The Landlord or his appointed agent will enter the commercial premises in order to carry out the repair works and recover the costs from their Tenant. The Lease must however contain an express right for the Landlord to enter the premises for these purposes.

 

  • The Landlord may forfeit the Lease with the Tenant on grounds of the repair breach. In order to forfeit, the Landlord must serve the Tenant with a Section 146 Notice for Forfeiture as per the Law of Property Act 1925. The Tenant will be afforded the opportunity of serving a Counter-Notice and apply for relief if relevant. An example of a Tenant’s relief would be that the Landlord has not repaired part of the premises which they are obligated to do so and as such, the Tenant is withholding carrying out their own;

 

  • The Landlord can claim damages from their Tenant for breaching their obligations to repair which will be capped to the amount of the premises being restored.

 

For further information on how Josiah Hincks can assist you in dealing with a Tenant who is not repairing your premises, please get in touch with our Commercial Property Landlord and Tenant Solicitors.