Commercial Rent Demand Letter UK: Landlord Guide

What this document is

A rent demand for a commercial lease is a written notice from a landlord (or their managing agent) to a business tenant, requesting payment of rent that has fallen due but remains unpaid. Unlike residential tenancies, commercial leases are largely governed by the contractual terms agreed between the parties, so the exact wording and procedure tends to follow what the lease itself requires.

The letter typically identifies the property, the tenant, the rent period being demanded, the sum outstanding, and the date by which payment must be received. It may also flag interest on late payment if the lease allows it, along with any contractual consequences of continued non-payment.

While a formal demand is not always a legal prerequisite to taking further action, many leases require it before interest runs or before the landlord can rely on forfeiture or CRAR. Sending one also demonstrates reasonable conduct, which courts tend to look on favourably if the dispute reaches that stage.

How to use this document

1. Check the lease carefully. Before drafting anything, read the rent and default clauses in the lease. Look at when rent is payable, whether it must be formally demanded, what interest rate applies to arrears, and any notice requirements. Missing a procedural step here can weaken your position later if you need to forfeit or recover possession. 2. Confirm the sums owed. Pull together a clear breakdown of what is outstanding: principal rent, service charge, insurance rent, VAT where applicable, and any contractual interest already accrued. Accuracy matters. Overstating the debt can give the tenant grounds to dispute the demand, and undercharging may limit what you can recover. 3. Draft the demand letter. Your letter should name the parties, describe the property, set out the rent period and amounts due, state the deadline for payment, and explain the consequences of non-payment. Keep the tone firm but professional. A hostile letter rarely prompts faster payment and can complicate future negotiations or court proceedings. 4. Serve the demand correctly. Most leases contain a notices clause specifying how formal correspondence must be delivered, whether by post to a registered address, recorded delivery, or another method. Serving the letter incorrectly can mean it has no legal effect, so follow the clause to the letter and keep proof of delivery. 5. Decide on next steps if unpaid. If the tenant still doesn't pay, consider your options: negotiating a payment plan, instructing an enforcement agent under CRAR, forfeiting the lease (carefully, given the strict rules), issuing a statutory demand, or bringing a debt claim. Each route has consequences, and the right choice depends on your commercial objectives.

Common questions