Managing Landlord & Tenant Issues in a Covid-19 World
Today’s Presenters
Alistair Walters Partner
awalters@campbellslegal.com
James Austin-Smith Counsel
jaustin-smith@campbellslegal.com
Natasha Partos Associate
npartos@campbellslegal.com
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Overview • Legislative background to residential and commercial landlord and tenant relationships • Contractual relationships between commercial landlord and tenants • Practical considerations during Covid-19 • Q&A
Residential Tenancies The Residential Tenancies Law 2009 (the “ Tenancies Law”) • • •
Scope of the Law; Requirement for written agreements (ss.14 -15 of the Tenancies Law); and Variations of tenancy agreements between the parties (s.17 of the Tenancies Law)
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Tenant’s Obligations •
During the tenancy, the tenant is obliged to pay: – the rent payable under the tenancy agreement; and – any other outgoings pursuant to the tenancy agreement (s.36 of the Tenancies Law).
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After a tenancy has expired or been terminated a tenant remains liable to pay: – outstanding rent – compensation; and – occupational rent (s.55 of the Tenancies Law). campbellslegal.com
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Landlord’s Obligations During a tenancy, a Landlord is obliged to: – Keep the tenant’s security deposit in trust (s.21 of the Tenancies Law); – Keep proper business records (s.28 (1) of the Tenancies Law); – Ensure that the tenant has quiet enjoyment of the property (s.34 of the Tenancies Law); – Respect his restricted access to the property (s.41 of the Tenancies Law); – Give adequate notice of a termination of a lease (ss.50-51 of the Tenancies Law).
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Part VI of the Law- Landlord’s rights to possession and compensation • • •
Right to recover unpaid rent (s.55(1) of the Tenancies Law) Rights to re-enter the property (s.57of the Tenancies Law) Right to evict tenants/proceedings for rent arrears (ss.58-59 of the Tenancies Law).
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Registered Land Law (2018 Revision) (the “Land Law”) Periodical Tenancies: • “Tenancy from year to year, half year to half year, quarter to quarter, month to month, week to week” (Land Law) • Occupation without an agreement in writing (s.45 Land Law)
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Commercial Tenancies • • • •
Termination and notice requirements (s.56 and 61 of the Land Law) Relief from forfeiture (s.57 Land Law) Right to re-enter Right to recover rent
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Beyond the Law…
First Steps
Check your lease Check your insurance Talk to your bank Talk to your tenant/landlord Talk to your lawyer
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Lease/Contract Needs to be determined on a case by case basis COVID-19 unlikely to lead to “frustration” of contract Ambiguity and Contra proferentem
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Insurance Insurance contracts need to be analysed on a case by case basis May have business continuity cover Unlikely to have pandemic cover Mitigation of loss
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Bank Early engagement vital Prepare before you call – have a plan Reflect any discussions in writing Amend any contract IN WRITING
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Talk to Each Other Reduced/delayed rent better than no rent Reduced/delayed rent cheaper than litigation Reputational issues Consider renegotiation payment timing, basis for calculation of rent If amending contract get legal advice first and DO IT IN WRITING
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Particular issues Repair Deep cleaning Access
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Litigation A last resort Take legal advice early to avoid it Keep all key documents (including emails) Make sure all negotiations/variations recorded in writing Once counsel instructed make sure you only go through them
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The Future COVID-19 and Government’s plans Monitor Maintain engagement
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Questions?
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