Disputes between landlords and tenants are common in both commercial and residential property. While many issues can be resolved through negotiation or alternative dispute resolution, some disagreements escalate to court proceedings. Understanding what to expect when a landlord and tenant dispute reaches court can help both parties make informed decisions, manage risk and protect their legal and commercial interests.
This article explains when landlord and tenant disputes typically reach court, the stages of the court process, likely timescales and costs, and the key considerations landlords and tenants should keep in mind throughout.
When do landlord and tenant disputes reach court
Most landlord and tenant disputes arise from disagreements over contractual obligations set out in the lease or tenancy agreement. Common issues include rent arrears, disrepair, service charge disputes, dilapidations, possession proceedings and disagreements over lease termination.
Court proceedings usually become necessary where informal resolution has failed or where urgent relief is required. For example, landlords may need to act quickly to recover possession or enforce rent obligations. Tenants may bring claims where serious disrepair affects the use of the property or where unlawful eviction is alleged.
In residential matters, disputes are typically heard in the county court, although some complex or high value cases may be transferred to the High Court. Commercial landlord and tenant disputes may also be heard in either court depending on the value and complexity of the claim.
Pre action steps and early resolution
Before starting court proceedings, parties are expected to take reasonable steps to resolve the dispute. This may include following a relevant pre action protocol, exchanging information and exploring settlement options such as negotiation or mediation.
For landlords, this stage often involves ensuring that all statutory and contractual requirements have been met, particularly in possession claims. For tenants, early legal advice can help clarify rights, obligations and potential defences.
A strong pre action strategy can resolve disputes more quickly and at lower cost. Courts can penalise parties who unreasonably refuse to engage in settlement discussions, particularly when awarding costs.
Starting court proceedings
If the dispute cannot be resolved, proceedings are started by issuing a claim at court. The claimant sets out the legal basis of the claim and the remedy sought, such as possession, payment of arrears or damages for disrepair.
The defendant then has the opportunity to file a defence. In some cases, counterclaims are raised, for example where a tenant alleges disrepair in response to a landlord’s claim for rent arrears.
The early stages of the case are important. The way claims and defences are pleaded can affect the scope of the dispute, the evidence required and the likelihood of settlement.
Case management and evidence
Once proceedings are underway, the court will manage the case through procedural directions. These may include disclosure of documents, exchange of witness statements and, in some cases, expert evidence.
In disrepair cases, expert reports are often required to assess the condition of the property and the cause of any defects. In commercial disputes, evidence relating to service charges, rent reviews or dilapidations can be extensive and complex.
Parties must comply with court directions and deadlines. Failure to do so can result in sanctions, including adverse cost orders or the striking out of claims or defences.
Costs and timescales
Timescales vary depending on the type of dispute and the court involved. Some possession claims can be resolved relatively quickly, while more complex landlord and tenant disputes may take many months or longer to reach a final hearing.
Costs are an important consideration. Legal fees, court fees and expert costs can add up, particularly in contested cases. While courts often order the unsuccessful party to pay a proportion of the successful party’s costs, recovery is rarely complete.
Understanding the potential costs exposure at an early stage allows landlords and tenants to make informed decisions about settlement and strategy.
Settlement opportunities
Most landlord and tenant disputes settle before reaching a final hearing. Settlement can occur at any stage, including after proceedings have started. Mediation and without prejudice negotiations are commonly used to reach agreement.
Settlement may offer greater certainty, reduce costs and preserve commercial relationships. For residential tenants, settlement can provide security and avoid the stress of court proceedings. For landlords, it can result in faster resolution and reduced financial risk.
Experienced legal advisers can help parties assess when settlement is appropriate and negotiate terms that protect their interests.
The court hearing and outcome
If a dispute proceeds to a hearing, the judge will consider the evidence and legal arguments from both sides before reaching a decision. In possession cases, the court may grant or refuse possession, make suspended orders or adjourn proceedings.
In claims for damages or other remedies, the court may award sums due, make declarations or grant injunctions. Court judgments are binding and enforceable, although there may be limited rights of appeal.
How Penerley can help
Penerley advises landlords and tenants on a wide range of property disputes, from early stage advice through to court proceedings. We act for both commercial and residential clients, providing practical and strategic guidance tailored to each situation.
If you are facing a landlord and tenant dispute or want advice before matters escalate to court, contact Penerley today. Our experienced team can help you understand your options, manage risk and achieve the best possible outcome.
