Landlord vs. Tenant: Navigating Conflicts in Corporate Leasing – A Case Study and What We Learned

Corporate leasing can be complex, and sometimes even the best-planned agreements don’t unfold as expected. Let me share an experience from Studio Khozi that highlights the challenges landlords and tenants often face—and the lessons we learned from managing these conflicts.

The Story

A tenant—a fast-growing IT firm—leased a premium 5,000 sq ft office in Noida’s Sector 62. The property, located near metro stations with modern amenities, seemed ideal for their operations. Everything started on a positive note, with favorable terms, rent holidays, and high expectations for a seamless partnership. But things began to shift just a year into the lease.

The landlord, seeing market rents surge post-pandemic, wanted to revise the lease earlier than agreed. From his perspective, the original rent was now below market value, and this adjustment would help protect his investment. On the other side, the tenant argued that the rent shouldn’t change for the next two years, as per the lease terms, to maintain financial predictability.

Meanwhile, operational issues crept in. The tenant raised complaints about delayed repairs to air conditioning systems and electrical maintenance. The landlord, in turn, claimed these were minor issues that the tenant should handle. Both sides felt the other was not honoring the spirit of the agreement, and tensions escalated into legal threats.

What Went Wrong

1. Vague Clauses on Rent Escalation The lease agreement lacked clarity on when and how rent could be revised. While the landlord assumed some flexibility, the tenant expected a lock-in period with no surprises. This misalignment sowed the seeds of conflict.
2. Ambiguity on Maintenance Responsibilities The lease didn’t explicitly define who would handle certain repairs or how quickly they should be resolved. This resulted in unmet expectations and frustration on both sides. Ambiguous clauses on operational upkeep are a common source of friction in leasing deals.
3. Market Volatility and Rigid Agreements Property markets are dynamic, and rents can change quickly—especially in competitive hubs like Noida. However, rigid lease terms that ignore market shifts make it difficult for landlords to adapt and protect their investments. Including clauses for periodic rent reviews or indexed rent adjustments would have allowed smoother negotiations.
4. Lack of Proactive Communication Both the landlord and tenant dealt with problems in isolation, addressing issues only when they reached a tipping point. If both sides had established a regular feedback loop or quarterly meetings, the relationship could have stayed on track.
5. Escalation Without Mediation The parties issued legal notices almost immediately when the situation deteriorated. Legal action adds complexity and delays to disputes that could often be resolved through neutral mediation or informal negotiations. A third-party mediator could have diffused the tension early on.

Shifting Perspectives

The key takeaway is that leasing isn’t merely a business transaction—it’s a partnership. For both landlords and tenants, entering a lease with the mindset of collaboration rather than confrontation can make a huge difference. In the above case, we intervened and facilitated open discussions, helping both parties appreciate each other’s constraints. With mediation, the landlord agreed to defer the rent increase for six months, and the tenant took responsibility for routine maintenance, easing operational pressures.

This case highlights that no matter how well-drafted a lease is, challenges can still arise. The ability to listen, adjust, and prioritize relationships over short-term gains is what ultimately keeps a leasing arrangement healthy. Flexibility, backed by trust, is critical—especially in the Indian context, where market dynamics shift rapidly, and relationships matter just as much as the terms on paper.

At Studio Khozi, we’ve seen that successful corporate leasing requires more than matching tenants with landlords. It involves aligning expectations, fostering long-term relationships, and addressing conflicts before they escalate. With thoughtful structuring and proactive mediation, many conflicts can be resolved without damaging partnerships.

By Sudhir Khatana -CRE (Studio Khozi )