A commercial lease dispute can disrupt business operations, especially when the business premises are central to generating revenue. This article outlines practical steps to take when a disagreement arises under a commercial lease in Australia and how, as a tenant, you can approach it in a measured way. Disputes often develop from unclear terms or changing commercial conditions, and they can escalate quickly if handled poorly. Understanding the usual approach helps businesses respond with control, not panic.

Review the Lease and Clarify the Dispute

The first step is to review the lease carefully and identify the exact source of the disagreement. Commercial leases often include detailed clauses on rent and repairs. They also set out permitted use and termination rights. Pinpointing the relevant clause can help determine whether the issue is contractual or procedural.

Disputes often arise from differing interpretations rather than clear breaches. Notice requirements and timeframes are also important, because missing a step can affect legal rights. A clear understanding of the lease keeps discussions focused on the real issue.

Keep Clear Records of Communication

Good record keeping is essential during a commercial lease dispute. Written correspondence, including emails and formal notices, can become central if the matter escalates. Keeping a clear timeline of events helps show what occurred and supports consistent decision-making. If discussions happen verbally, follow up in writing to confirm what was said. This reduces the chance of later disagreement about commitments. Clear records also help legal advisers assess the situation accurately.

Try to Resolve the Issue Early

Many commercial lease disputes can be resolved through early discussion. Raising concerns before positions harden often leads to more workable outcomes. In an ongoing lease, both landlords and tenants may benefit from keeping the relationship functional. Early conversations may lead to temporary arrangements or updated timeframes that suit both parties. Informal resolution isn’t always possible, but a reasonable approach can reduce tension and may assist if the dispute later progresses to mediation or a formal process.

Understand Formal Resolution Options

If early discussions fail, it helps to understand the formal pathways available. Mediation is commonly used for commercial lease disputes and provides a structured environment to explore solutions with an independent facilitator. Depending on the lease, the next step may involve a relevant court or statutory forum. Knowing the likely pathway early will help with better planning and reduce rushed decisions.

Seek Legal Advice Early

Early legal advice can provide clarity during a commercial lease dispute, particularly where financial exposure is significant or obligations are unclear. Legal guidance can also help avoid procedural mistakes. Seeking advice early often prevents smaller issues from becoming harder to resolve. It also supports better decisions throughout the process.

Conclusion

A commercial lease dispute doesn’t have to derail a business. Review the lease carefully, keep clear records, and try to resolve the issue early by seeking legal advice when it becomes necessary. These steps can help businesses manage disputes with greater control.

 

• Next