Parking Rights in Commercial Leases

Parking rights can be contentious. The location of the commercial premises, the business being operated, the need for employees to park at the premises and the availability for customers to park at the commercial premises are all factors that a Tenant will need to consider.

The best scenario for both Landlord and Tenant is for the Lease to be clear and unequivocal about property rights and obligations. Often, however, parking rights can be unclear and the physical use of property can change over time so that the use on the ground is not reflected in the terms of the Lease.

There are several options available to parties to a commercial Lease to deal with parking rights, each with varying degrees of control and responsibility. If rights and obligations are not clear, then this can lead to protracted negotiations on the renewal of a Lease. Equally, if rights and obligations are not clear in the Lease, this can lead to difficulties with other occupiers of commercial premises.

We have recently dealt with the renewal of a commercial Lease for a Tenant of premises who have been in occupation of the same premises for over 50 years. The original Lease had been misplaced.  The subsequent Leases were renewed by reference to the original Lease and the original renewal Lease referred to a plan and parking spaces, but the plan itself had then been misplaced. On Lease renewal, the issue of parking rights became contentious with the Landlord offering a Licence or permits to park, whereas the Tenant had, in their view, had the right to park in three demised parking spaces. The use of three parking spaces over the course of 50 years was denied by the Landlord. The Landlord relied on the permits it had provided to the Tenant to park as evidence that the Lease and the property demised under the Lease did not include parking spaces. The issue of the parking spaces proved contentious and resulted in protracted negotiations on Lease renewal.

Demised Parking Spaces

Car parking spaces can be included within the demise of the premises granted to a Tenant under a Lease.  This will normally be recorded in the plan attached to the Lease delineating particular parking spaces as being part of the premises demised to the Tenant under the Lease. This gives the Tenant exclusive possession of those parking spaces, which means that no one other than the Tenant, its employees/customers, will be permitted to park in those spaces. However, as these parking spaces will be part of the demise, it is usual for the Landlord to require the Tenant to be responsible for the repair and maintenance of those parking spaces.

An alternative way of making the Tenant responsible for the cost of repairs is to include an obligation on the Tenant to contribute a percentage of the cost of repair carried out by the Landlord, according to the parking spaces demised.

Right to Park

A general right to park is distinctly different from a demised parking space. This would give the Tenant a general right to park in any space within the car parking area. This would be on a first come, first serve basis. As a general right to park, there is no allocated parking space and so the Tenants with a general right to park will be competing for parking spaces with other Occupiers/Tenants of commercial premises with the same right as them.

A general right to park can be limited to a specific number of parking spaces or be unlimited.

Exclusive Right to Park in Allocated Parking Spaces

This is a specific right to park in an allocated parking space and, again, may be limited in number. It is usual for this type of allocated parking space to be restricted, rather than unlimited.

In either the general right or the exclusive right to park in an allocated parking space, it is usual for the Landlord to be responsible for the maintenance of the parking area and to pass this cost on to the Tenants in the Service Charge.

If there are areas within the parking space which are reserved for the Landlord, either for the Landlord’s use which are rented to other users, then it is usual for the Landlord to be responsible to contribute towards the cost of these particular parking spaces as a proportion just as the Tenants are.

The use of permits to indicate the type of parking right that a Tenant has are also usual, even if there is a barrier to the parking area.

Rights to park can be contentious during the course of a Lease or on Lease renewal and clarity and certainty is preferable for both Landlord and Tenant.

How Pinney Talfourd Can Help

Our expert Property Litigation Team has extensive experience advising both landlords and tenants on lease negotiations and disputes, including complex issues such as parking rights. Whether you’re renewing a lease, reviewing terms, or resolving a disagreement, we can help ensure your position is clearly defined and legally protected. Clarity now can prevent costly disputes later.