Commercial Landlord and Tenant Law - Essay Example

? Commercial Landlord and Tenant Law According to the Landlord and Tenant Act 1954 an eligible business lease does not come to an end automatically upon the expiry of a specified lease period if the occupier continues to live in the premise for business reasons (Linda, 2013. P. 12). The Act provides a procedure for ending the tenancy between the landlord, and the tenant provided the tenancy has not been ended by an accord between the two parties. The Act specifies circumstances that may require the landlord to grant compensation to the tenant upon termination of the agreement in accordance to the act. In the event where the landlord intends to repossess the premise for personal use for other reasons, the Act provides the processes the landlord should follow without incurring a liability for breach of the lease contract (Bright, 2007. P. 186). The actual procedure for bringing tenancy to end depends on the terms under which the contract was formed. In addition, the process will be influenced by the manner in which both parties have adhered to the terms of the contract as well as the application of right process for ending the tenancy in accordance to the Act. Unit 1 In the case of unit 1, the lease contract was initiated on September of the year 2000, and the lease period was fifteen years. The contract was completed under Full Repairs and Insurance (FRI) lease in accordance to the landlord and tenant Act of 2000. However, during the lease period the tenant renovated the premise by constructing an extension and installing air conditioner at a value of ?125,000 in the year 2004. This resulted to an appreciation of the rental value of premise to about ?14,500. In this situation, the occupier is entitled for compensation from the landlord for the cost he or she has incurred in adding value of the building (McQueen, 2010. P. 43). According to this Act, the tenant is entitled to receive compensation because of improving the status of the building above the state it was in before the occupancy (Bright, 2007. P. 195). Since the tenant occupied the building in the year September 2000, the period of occupancy is below fourteen years. The tenant has left twenty months before the expiry of the lease period. The Act requires compensation at a value of rate-able value of the premise in the event of termination at the request of the landlord. In case the landlord succeeds in terminating the lease contract for unit 1, the occupier will have to be compensated on the ground that the landlord wants the building for other use rather than breach of agreement by the occupier (Linda, 2013. P. 17). The landlord has numerous means to explore in clearing unit 1 for another tenant. Firstly, the landlord can issue the tenant with a six months notice under section 25 of the Act. In this notice, the landlord should indicate the reasons for refusal of a new tenancy taking into considerations the requirements of section 30 of the Act (Portman, & Marcia, 2012. p.79). In this situation either the landlord or the tenant will petition the court of law to justify the landlord’s application of rejecting new tenancy under section 30 of the Act. The case will have to be determined by the court and decide whether the occupier will vacate the premise to continue living in it (Jeffrey, 2003. P. 43). If the landlord succeeds in this application, the tenant will have to vacate the building upon the completion of the lease period that will expire in twenty months time from now. Another option available for the landlord to clear unit 1 building for another client is through mutual agreement with the current occupier. This is the best option because it will not require tedious procedure, but instead the landlord may inquire from the client as to whether they will renew the contract or whether to bring the tenancy to an end (Bright, 2007. p. 256). This is referred to as mutual agreement since the two parties must consent on the action to be taken. The Act grants the tenants right of tenure that allows tenants to continue occupying the premise until the end of the lease period. Also, the right of tenure enables the tenants to renew the lease contract unless the occupier has breached the terms of tenancy in which case they may be forced to vacate the premises by the landlords by suing on the ground of breach of agreement (Linda, 2013. P. 23). If the tenant agrees to vacate the building after the termination of the period, the new client may enter into a new agreement with the landlord after twenty months. In either way, the landlord cannot be able to secure unit 1 for another client within a period of less than twenty months. Unit 2 The occupier of unit 2 is paying the rent of the house at a later date than the date stated in the agreement. The tenant has occupied this building for more than fourteen years and has less than ten months before the expiry of the lease period. The landlord can issue the tenant with a six months notice to vacate the building under claims of late payment of rental fees in accordance to the section 30 of the land and tenant Act of 1954 (Linda, 2013. P. 36). Once the landlord has issued the tenant with six months notice to vacate the building either the landlord or the tenant can request the court to ascertain the reason stated in the notice for vacating the premise. If the reason is justified, the tenant will be required to vacate, and another tenant can get the room. However, the landlord has to do so before receiving a notice from the tenant under section 26 requesting for the renewal of the lease period (Bright, 2007. P. 296). The petitioner must notify the court within two months after the issuance of the notice by the landlord to the tenant. In case the landlords request is granted, then the tenant may have to vacate the house after the expiration of the notice or after the end of the lease period. If the tenant sends a notice under section 26 to the landlord requesting for renewal of the tenancy, and the landlord accepts the notice then the landlord cannot issue notice under section 25 requesting the end for tenancy (Portman, & Marcia, 2012. P. 102). Unit 3 The tenancy of this unit is not covered b the landlord and tenant Act of 1954 hence the tenant has no tenure of security. However, under Internal Repairs (IR) lease agreement the occupant of the building is accountable for all costs related to internal maintenance of the building (Jeffrey, 2003. P. 54). In addition, the landlord may require the tenant to contribute some amount to cater for the maintenance of the common parts of the building such as corridors. Under this tenancy, the landlord can request the tenant the tenant to clear the house by issuing a six months notice to the tenant for failure to pay rent of maintenance cost. In addition, the landlord can request the client to leave the building after the end of the lease period. Since the tenant has no security of tenure under Landlord and tenants Act of 1954, the tenant will have no option other than vacating the building. The agreement will have to adhere to the ordinary laws of contract. The tenancy duration is expected to expire in ten months time under the initial agreement. Therefore, the landlord can acquire the building after this period since the client has no right to renew the contract. However, the landlord can approach the tenant and request if it is possible for the tenant to vacate the building before the expiry of the contract. If the client consents then the landlord will be able to acquire unit 3 for another client under mutual consent with the tenant. The tenant is not entitled to any compensation since the agreement is not established under the landlord and tenant Act of 1954. Unit 4 The lease agreement for unit 4 is supposed to last for fifteen years since the year 2004. With about five more years to end the lease agreement, the landlord can request the tenant to vacate the building by issuing them one year notice under the rolling break condition. Rolling break is a clause that allows either of the parties to request the other party by issuance of one year notice to end the lease agreement (Jeffrey, 2003. P. 65). However, in order for clients to apply this clause, there must have been compliance with the agreements by the parties. Therefore, the landlord may issue one year notice to the tenant under rolling break clause to have the vacant building that can be leased to another tenant. Although he tenant has not maintained the house in good condition, the landlord can issue this notice in consideration of the tenant’s compliance on material conditions. The agreement between the landlord and the tenant is under FRI hence the tenant is responsible for maintenance of the building and contributes to the cost of maintenance of the common facilities such as corridors (McQueen, 2010. P. 59). However, the new tenant will be able to get the building after one year following the termination of one year period as stated in rolling break clause. Unit 5 Unit 5 is already vacant for use by a new tenant. The landlords concern is about the terms under which to lease the building on a short period. The choice of the landlord should offer him or her opportunity to repossess a vacant building at request. The agreement should not be covered with the landlord and tenant agreement because this Act will grant the tenant the right of security of tenure (Portman, & Marcia, 2012. p. 126). Security of tenure may hinder the landlord from repossessing the building at free will. It is essential if the agreement between the two parties requires the occupant to take responsibility of the repairs and maintenance in order to minimize the expenses on the landlord as much as possible. The landlord should provide a written notice to the landlord informing them of the exclusion of Act in the agreement (Jeffrey, 2003. P. 68). The tenant should respond in writing indicating the understanding of the consequences of non-exclusion of the Act in the lease agreement. The landlord will have an opportunity to force the tenant to vacate the building in case the tenant violates one or more of the terms of the agreement. A lease agreement excluding the Act will enable the parties to agree on the lease period. The landlord will not be required to compensate the tenant in case of forced exit. Bibliography Bright, S. 2007. Landlord and Tenant Law in Context Law. Hart Publishing Limited. Pp. 124-386 Jeffrey, S. W. 2003. Tenant Is Implied Coinsured with Policyholder Landlord: Absent Express Agreement Providing for Subrogation Claim against Tenant, Landlord's Insurer May Not Sue Tenant in Subrogation over Tenant-Caused Damage to Apartment. (Recent Court Decisions). Journal of Risk and Insurance, Vol. 70(1). Pp. 23-75. Linda, K. 2013. Yukon. Canadian Parliamentary Journal Review, Vol. 36(1). Pp. 5-89 McQueen, J. 2010. Landlord and Tenant Law. Straightforward co Ltd, UK. Pp. 36-87. Portman, J. & Marcia, S. 2012. Every Tenant's Legal Guide. Nolo. 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