Enforcing a Landlord’s Repairing Obligations in a Commercial Lease

If you are a commercial tenant, your lease may set out that your landlord has to keep the structure and shared parts of the building in repair. When that does not happen, it can have a serious, detrimental effect on your business.

This article helps you understand your rights when things go wrong, as the first step to getting them put right.

What is the landlord responsible for?

In some commercial leases, the landlord is responsible for maintaining and repairing:

• the structure of the building;
• its exterior; and
• any common areas, such as shared entrances or stairwells.

The lease is the starting point to understand who is responsible for what. Generally, the landlord must carry out repairs within a reasonable period as soon as they become aware that something is wrong.  The lease may say the tenant should notify the landlord of any issues the tenant becomes aware of.

In some cases, the landlord’s duty begins as soon as a defect arises — even if no one has reported it.  A key case that confirmed this was British Telecommunications plc v Sun Life Assurance Society plc (1995), where the landlord was found liable for failing to repair external brickwork, even though the tenant had not given any notice of it.

If you are a tenant experiencing a repair issue that you think is the landlord’s responsibility to repair, it is important that you notify the landlord in writing and keep records.  The landlord may only become liable for any losses you incur because of the disrepair once they know about it, and a reasonable period to fix the problem has passed, and it has not been resolved.

Are there any implied obligations?

Some leases are silent on who is responsible for what.  This can make it difficult to establish who has a duty to repair and to compensate the other.  Courts are reluctant to imply extra responsibilities beyond what’s written in the lease. However, landlords may still have a duty to take reasonable care of parts of the building they retain control over — for example, if a landlord-controlled roof leaks into a tenant’s space.

This was confirmed in Stonecrest Marble Ltd v Shepherds Bush Housing Association Ltd (2021), where the court declined to imply a repairing duty that contradicted the lease’s express wording.
If the lease is unclear, you should seek specialist legal advice on how it is likely to be interpreted.

What can a tenant do if the landlord doesn’t carry out repairs?

If your landlord is not meeting their obligations, you may be able to:

Seek an order to make them carry out the work

This is known as “specific performance” and is ordered by a court if a landlord is in breach of their obligations and sets out that they must repair the property.

Claim damages

You may be able to seek financial compensation for:

• any loss you’ve suffered (for example, if your business was disrupted),
• and a reduction in the rent whilst the property is in disrepair.

The goal is to put you in the position you would have been in if the repairs had been done properly and on time.

Set off against rent

In some older leases, tenants can deduct repair costs or compensation from their rent. However, most modern leases specifically prevent this, so it is not usually an option.  You should not withhold rent unless the lease specifically says you can – otherwise the landlord may be able to take steps to end your lease or recover the money from you.

End the lease (repudiation)

In very serious cases, a tenant may argue that the landlord’s failure to repair has fundamentally breached the lease, allowing the tenant to walk away.

Contact our Property Disputes solicitors today

Disputes over repairs can be extremely draining on your commercial resources — especially when they start to affect your day-to-day operations. If you’re unsure of your rights or how to take things forward, we’re here to help. Contact our experienced Property Litigation team today by calling 0330 404 0768,  using our online enquiry form or emailing Kirsteen.Durrant@ashtonslegal.co.uk.