Can a Landlord Change the Locks on a Commercial Property?

Property access and lock changing can be quite a contentious subject, so commercial landlords and tenants need to understand the laws and regulations surrounding these issues. The legal landscape can be intricate and complex, with the potential for various scenarios and outcomes depending on the specific circumstances.

It’s crucial to be aware of the potential legal ramifications of actions taken by either party, as missteps can lead to disputes, financial losses, and damage to business relationships. So, can a landlord change the locks on a commercial property? Let’s find out.

What is the difference between commercial and residential leases?

Firstly, it is essential to understand the difference between commercial and residential leases. A residential lease resembles the typical renting situation where a landlord rents out their property for someone to live in. 

A commercial lease involves a landlord renting property for business use, such as an office building, warehouse, or retail shop on the high street. This advice article addresses the commercial side. Specifically, answering the question: can a commercial landlord change the locks on a property?

Can a landlord change the locks on a commercial property?

The circumstances under which a landlord can change the locks on a commercial property differ from those of a residential property. In contrast to residential tenancies, where landlords must obtain a court order to change the locks, commercial landlords in the UK have the authority to change the locks without prior court approval.

Landlords may be tempted to change the locks immediately after the tenant breaches the lease agreement, like failure to pay rent, but there are strict legal procedures landlords must follow.

Also, it’s important to remember that changing the locks can have a substantial negative impact on a business, potentially resulting in significant losses and expenses.

Forfeiture

A forfeiture clause within the lease agreement may permit the landlord to end the lease if the tenant violates any of the agreement’s terms. A violation may involve situations such as failing to pay rent, a tenant’s neglect of maintenance duties or there’s damage to the property.

However, the commercial landlord cannot dive straight in. To exercise their right to change the locks at the commercial property, the landlord must take legal action through a court or serve a Section 146 notice. The correct legal procedures must be followed before forfeiture and changing of locks at the commercial property can occur.

The Section 146 notice must detail the breach and give the tenant time to rectify the situation. In the written notice, it should detail a reasonable deadline for the tenant to fix the problem. If the tenant fails to fix it within the time period, then the landlord can change the locks on a commercial property. The tenant can apply for relief from forfeiture through court proceedings.

Warning! Tenants can take legal action against landlords who change the locks without prior notice. The landlord is responsible for any business losses the tenant may have suffered as a result of this action and should serve notice beforehand to safeguard their legal rights.

Warning! Changing the locks without abiding by these requirements can result in claims of unlawful eviction or breach of contract. 

Peaceable re-entry

It is likely a landlord will choose peaceable re-entry when changing the locks. This is because the other method, via court, is likely to be costly. Landlords should do this when you are not there and outside of business hours. The landlord should also provide the tenant with a notice informing them of the lock change.

Professional legal advice

Both landlords and tenants should familiarise themselves with the relevant laws and regulations, as well as the specific terms of their lease agreement, to ensure they are acting within their rights and responsibilities. Seeking legal advice when in doubt is always a prudent course of action to avoid potential legal pitfalls and ensure a harmonious landlord-tenant relationship. 

Commercial properties present greater risks for landlords. For instance, the risk of insurance claims is higher in a factory setting due to the potential for hazardous activities, compared to residential properties.

As commercial landlords have made a greater investment and there are more risks, it’s even more important to take out insurance. It’s worth making sure you have secured the best commercial landlord insurance. Contact us at 01788 818733 today to find out more about a commercial landlord quote.