Commercial Dispute Resolution Frequently Asked Questions

My tenant is not paying his rent, what can I do?

Before you talk to your tenant, you should seek legal advice immediately. Not all remedies are available to every landlord and you should call us to talk about what options are available to you.

Briefly, the remedies available to a landlord if the tenant breaches payment of rent covenants are:

  1. Commercial Rent Arrears Recovery (CRAR).
  2. Forfeiture.
  3. Debt Action.
  4. Bankruptcy or Winding-up.
  5. Pursue a former tenant, a guarantor or surety. And the following factors should be taken into consideration when deciding which remedy to pursue: How much rent is outstanding and how long it has been in arrears?

Can the defaulting tenant pay?

If it is an old lease, is the original tenant under a continuing liability and/or did any previous assignees give the landlord direct covenants? If it is a new lease, is there an Authorised Guarantee Agreement (AGA) in existence?

What are the consequences of pursuing third parties?

What does the Lease state (eg for forfeiture to operate there must be an express clause allowing for the same, or that particular remedy cannot be used)?

Call us for advice tailored to your lease and circumstances.