29 Oct 2026
By Jennifer Davidson, Associate, Commercial Real Estate, Gilson Gray
A Guide for Landlords
When a commercial tenant falls behind with the rent, it can be worrying—particularly when you have mortgage payments, service charges and other property costs to cover. The good news is that dealing with the issue early can often stop it from becoming a bigger problem. By opening a conversation with your tenant and following the correct legal process, you can protect your position and make an informed decision about what to do next.
Practical steps for commercial landlords
1. Take a look at the lease – First, check how much rent is outstanding, when it was due and what the lease says about late payment, interest and enforcement. Every commercial lease is different, so it is worth checking the wording rather than relying on what may have happened with another property.
2. Speak to the tenant – There may be a straightforward explanation, such as a short-term cash-flow problem or an administrative error. An early, open conversation can help you understand what has happened and whether an agreed repayment plan could be a practical way forward.
3. Keep a clear written record – Note what is owed and keep copies of relevant emails, letters and notes of calls. If you agree a payment plan or another arrangement, make sure the terms are set out clearly in writing so that everyone understands what has been agreed.
4. Think about a pre-irritancy notice – “Irritancy” is simply the Scottish legal term for ending a lease because the tenant has broken its terms. Before a lease can usually be brought to an end for unpaid rent, the landlord must serve a formal warning notice giving the tenant at least 14 days to pay the outstanding amount.
5. Consider the next formal step – If the tenant still does not pay within the required period, you may be entitled to end the lease by serving an irritancy notice. It is important to get the wording, timing and method of service right, as mistakes can cause delay and lead to further disagreement.
6. Ask for advice sooner rather than later – You do not need to wait until matters reach a crisis point. A solicitor can review the lease, confirm the sums due, prepare the correct notices and talk you through the options for recovering the arrears or taking the property back.
Common pitfalls to avoid
It can be tempting to move quickly when rent is overdue, but taking the wrong step may make the situation more difficult. An incorrectly prepared notice, a missed requirement in the lease or an attempt to remove the tenant without following the proper process could cause delay and an avoidable dispute. Even accepting a payment or agreeing an informal arrangement after enforcement action has started may affect your options. Taking advice before you act can give you clarity and confidence.
How our commercial property team can help
Worried about unpaid commercial rent? We are here to help. Our commercial property team can review the lease and the arrears, explain the pre-irritancy and irritancy process without the legal jargon, and help you choose the right next step for your circumstances.
