What is the process for resolving disputes between the landlord and tenant?

Published: 10/10/2024

In the UK commercial property sector, disputes between landlords and tenants are typically resolved through a structured process that aims to avoid lengthy and costly legal battles. Here’s an overview of the key steps involved:

1. Negotiation:
Initial Discussions: The first step is usually direct negotiation between the landlord and tenant. Both parties attempt to resolve the issue informally through open communication, aiming for a mutually agreeable solution.
Mediation: If direct negotiations fail, the parties may engage in mediation, where a neutral third party helps facilitate discussions to reach a voluntary agreement. Mediation is less formal and cheaper than going to court.
2. Alternative Dispute Resolution (ADR):
Arbitration: In cases where mediation doesn’t work, arbitration is a common method. An independent arbitrator is appointed to review the evidence and make a binding decision. Arbitration is more formal than mediation but usually faster and more private than court proceedings.
Expert Determination: For specific technical disputes, such as rent reviews or valuation issues, an expert in the field (like a surveyor) may be appointed to make a binding decision.
3. Legal Action:
Court Proceedings: If ADR methods fail, the dispute may escalate to formal legal action. The case is brought before a court where a judge will make a binding decision. This route is usually a last resort due to the time, cost, and adversarial nature of court cases.
Property Tribunal: For certain types of disputes, such as those involving lease renewals or service charges, the case might be brought before a property tribunal. Tribunals are less formal than courts but still provide a legal resolution.
4. Lease Clauses:
Dispute Resolution Clauses: Many commercial leases include specific clauses outlining how disputes should be resolved, including mandatory arbitration or mediation. It’s important for both parties to review and understand these clauses at the outset of the lease.
5. Legal Representation:
Solicitors: Throughout the process, both parties typically engage solicitors who specialize in commercial property law to advise them on their rights and obligations, and to represent them during negotiations, ADR, or court proceedings.
Resolving disputes through negotiation or ADR is often preferred due to the lower costs and quicker resolutions compared to court proceedings. However, the specific approach will depend on the nature of the dispute and the willingness of both parties to cooperate.