Landlord & Tenant

LANDLORD & TENANT Trinidad & Tobago Hospitality & Tourism Institute Hospitality Law & Insurance: BC 229 Lecturer: Ms. V. Maharaj

Leasehold A leasehold estate gives a right to possession, use and enjoyment of land for a definite period of time. The nature of this tenure, signified by the words ‘landlord’ and ‘tenant’, is that the tenant pays ‘rent service’ (now known simply as ‘rent’) to the landlord in return for the right to occupy the land, and the landlord retains a right to levy distress against the tenant’s goods in the event of nonpayment of rent and, more importantly, in some circumstances, a right to forfeit the lease if the tenant is in breach of his obligations.

Essential Characteristics of Leases There are three requirements for a right to occupy land to be capable of taking effect as a lease:iv.

The right to exclusive possession must be given: this means that the tenant must be given the right to exclude all other persons from the land, including the landlord.

vi.

The duration of the lease must be certain: The general rule is that a lease must have a certain beginning and a certain ending.

viii.

Payment of Rent.

Formalities For Creation of Leases Trinidad and Tobago; Landlord and Tenant Ordinance, Ch. 27, No. 16, S.3 Leases for more than three years must be made by deed and registered, leases for three years or less may be made by deed or in writing; periodic tenancies at will may be oral.

Effect of Non-Compliance With Formalities A lease which does not comply with the necessary statutory formalities is void at law, but it has long been the rule that if the intended tenant then pays rent which is accepted, he becomes a yearly or other periodic tenant depending on the period with reference to which rent if paid.

Types of Tenancies Lease for Fixed Period A lease may be granted for any fixed period, provided that there is a certain beginning and a certain ending. A lease for a fixed term terminates automatically when the period expires; there is no need for any notice to quit by the landlord or the tenant. The landlord cannot terminate the lease before the end of the period unless the tenant has been in breach of a condition in the lease, or the lease contains a forfeiture clause and the tenant has committed a breach of covenant which entitled the landlord to forfeit the lease. The tenant cannot terminate the lease before it has run its course; he may only ask the landlord to accept a surrender of the lease, which the landlord may choose to accept or reject.

Types of Tenancies Periodic Tenancy Weekly, monthly, quarterly and yearly tenancies are the commonest examples of periodic tenancies. Such tenancies continue indefinitely until terminated by proper notice to quit by the landlord or the tenant. Subject to agreement to the contrary, the length of notice required to terminate a periodic tenancy depends on the form that the tenancy takes, viz., a weekly tenancy can be terminated by a weeks’ notice; a monthly tenancy by one month’s notice; and a quarterly tenancy by three month’s notice. An exception to this rule is the yearly tenancy, which is terminable by a half year’s notice. A periodic tenancy may be created expressly or by implication.

Types of Tenancies Tenancy at Will A tenancy at will exists when a person occupies the land of another on the understanding that he may go when he likes and that the owner may terminate his interest at any time the owner wishes to do so. A tenancy at will can only exist as a result of an agreement between the parties and an intention on the part of the landlord to create such a tenancy. This may be created either expressly or by implication This is terminated by the death of either party or where either party does an act which is incompatible with the continuance of the tenancy, e.g. where wither party gives notice of termination to the other.

Leasehold Covenants The liabilities of lessor and lessee are normally to be found in the express covenants (i.e. obligations) contained in the deed of lease, or in the covenants implied by statute or common law.

Landlord’s Implied Obligations Covenant for Quiet Enjoyment At common law, there is implied in every lease a covenant in the part of the landlord that the tenant shall be put into possession of the demised premises during the continuance if the lease. The tenant is entitled to recover damages from the landlord if the landlord or any other person claiming through him substantially disturbs or physically interferes with the tenant’s enjoyment of the land.

Ram v Ramkissoon [1968] 13 WIR 332 Facts The appellant was a statutory tenant of two rooms in a central portion of a building where he carried on business as a jeweller. The building was old and in a bad state of repair, and its two end portions had been unoccupied for several years. The respondent landlord, who owned the whole building, wished to obtain vacant possession of the central portion also. While ejectment proceedings were pending, the respondent removed the galvanized iron sheets from the roof of both end portions of the building. The appellant complained that, as a direct consequence of the removal of the roof, rainwater seeped through the rooms he occupied, causing annoyance, discomfort and physical damage to his property. He claimed damages for breach of the landlord’s implied covenant for quiet enjoyment.

Ram v Ramkissoon [1968] 13 WIR 332 Held The damage suffered by the appellant was sufficiently substantial to constitute a breach of the covenant for quiet enjoyment. Reasoning A covenant for quiet enjoyment must be implied from the respondent's contract of letting. To constitute an actionable breach, the interference with the tenant’s enjoyment of the tenancy must be substantial. The course of conduct by the landlord seriously interfered with the tenant’s proper freedom in action in exercising his right of possession, tended to deprive him of the full benefit of it, and was an invasion of his rights as tenant to remain in possession undisturbed, and so would in itself constitute a breach of covenant.

Landlord’s Implied Obligations Covenant Not to Derogate From the Grant There is an implied covenant that the landlord will not derogate from his grant. The landlord must not frustrate the use of the land for the purposes for which it was let. To constitute a breach of covenant the Landlords must do some act which renders the demised premises ‘ substantially less fit for the purposes for which they were let’. Many acts which constitute a breach of this covenant may also constitute a breach of the covenant for quiet enjoyment

Landlord’s Implied Obligations Covenant as to Fitness for Habitation At common law there is no implied covenant by a landlord that the premises let are or will be fit for human habitation nor is there any implied covenant that the landlord will do any repairs whatever. However there are the following exceptions: v.

Furnished Lettings: Where residential premises are let furnished, there is an implied condition that they are fir for habitation at the commencement of the tenancy. But the landlord has no obligation to keep the premises habitable, so, if they subsequently become unfit, the landlord is not liable.

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High Rise Apartments: A landlord of residential apartments in a high rise building is under an implied duty to keep in a reasonable state of repair the lifts, staircases and other common facilities, such as lighting and garbage chutes, for the benefit of all the tenants in the building.

ix.

Statutory Provisions: Letting of Houses (Implied Terms) Act, Ch. 27, No.3, S.3 provides that “in any contract for letting any house for human habitation there shall, notwithstanding any stipulation to the contrary, be an implied condition that the house is, at the commencement of the tenancy, and an undertaking that the house will be kept by the landlord during the tenancy, in repair and in all respects reasonably fir for human habitation.”

Hamblin v Samuel [1966] Facts The owner of a house decided to convert the basement area into two self contained apartments. Officials of the Rent Assessment Board visited the premises and found that the ventilation of the apartments was inadequate, that the one bedroom window in each apartment could not be opened at all, and that the one sitting room in each has generally to be kept closed because of the prevailing dust.

Hamblin v Samuel [1966] Held The Court upheld the findings of the Board that the conditions to which the apartments were subject as almost, if not wholly, subhuman. The meaning of ‘fit for human habitation’, in its natural meaning may be said to be ‘fit for human beings to live in’. In determining for any of the purposes of the Act whether a house is unfit for human habitation, regard shall be had to its condition in respect of the following matters:(g) (h) (i) (j) (k) (l) (m)

repair; Stability; Freedom from damp; Natural lighting; Ventilation; Water supply; drainage and sanitary conveniences; Facilities for storage, preparation and cooking of food and for the disposal of waster water,

and the house shall be deemed to be unfit for human habitation if and only if it is so far defective in one or more of the of the said matters that it is not reasonably suitable for occupation in that condition.

Landlord’s Implied Obligations Covenant to Repair Repairing covenants, other than covenants as fitness for habitation, are normally expressly inserted in leases. Where a landlord has covenanted or is subject to a statutory obligation to repair and, having been notified by the tenant of the need for certain repairs, fails to carry them out, the tenancy is entitled to arrange to have the repair work done and deduct to cost from future payments of rent.

Tenant’s Implied Obligation Obligation Not to Commit Waste A tenant for a fixed term is liable both for voluntary waste (positive acts of injury to the property, such as altering, or destroying it) and permissive waste (allowing the property to become dilapidated, through omission to repair) and therefore, in the absence of an express stipulation to the contrary, he must keep the premises in proper repair.

Express Covenants To a large extent, the rights and liabilities of landlord and tenant are regulated by express covenants inserted in the lease or tenancy agreement. The most significant and commonly encountered covenants concern payment of rent, obligation to repair and obligation noit to assign, underlet or part with the possession of the premises without the landlord’s consent.

Express Covenants Covenant to Pay Rent The rent payable under a lease is more properly called ‘rent service’. ;though, today rent almost invariably consists of money payments, there is nothing to prevent rent taking the form for delivery of chattels or produce, or the performance of personal services. The amount to be paid as rent must be sufficiently certain. Once a lease has been granted the court will do what it can to interpret provisions as to rent in such a way as to achieve sufficient certainty. A lease may contain a ‘rent review clause’, enabling rent to be raised at regular intervals to reflect the fair market value of the demised premises.

Express Covenants Covenant to Repair The obligation to repair the demised premises may rest on the landlord, or on the tenant, the matter is entirely one for negotiation between the parties, and the extent of the obligation depends on the wording of the covenant. At common law, the standard of repair is that which, after making due allowance for the locality, character and age of the premises at the date of the lease, a reasonably minded owner would keep them. An important principle is that the character of the premises and the locality at the beginning of the tenancy which must be considered. With regard to the age of the property, the covenantor is under an obligation to keep it in a reasonably good condition for a building of that age.

Express Covenants Covenant to Repair: Fair Wear & Tear Tenants frequently covenant to keep the premises in repair, ‘fair wear and tea excepted’. The effect of the phrase is to absolve the tenant from liability for: (e) (f)

Damage due to the ordinary operation of natural causes such as wind and rain; and Disrepair resulting from the reasonable use of the premises.

However, although the tenant is not liable for the original damage or deterioration constituting wear and tear, he is liable for any consequential damage resulting from his failure to rectify the original damage, where it should be obvious to a reasonable person than, if not rectified, further and lasting damage would ensue.

Express Covenants Covenant Not to Assign, Sublet or Part With Possession of the Demised Premises In order to ensure that the premises do not fsll into the hands of an irresponsible person, it is usual for a lease to contain an express covenant either that the tenant will not assign or sublet the premises (an absolute covenant) or, more commonly, that the tenant will not assign or sublet without the consent of the landlord (a qualified covenant). The qualified covenant may be subject to an express proviso that the landlord will not unreasonably refuse his consent to an assignment or subletting.

Express Covenants Option to Purchase the Reversion An option to purchase the reversion will often take the form of a covenant in the lease to the effect that, if the lessee within a specified period gives to the Lessor notice in writing of a specified length of his desire to purchase the freehold reversion of the premises, the Lessor will, on payment of a specified purchase price and all arrears of rent, convey the freehold of the demised premises to the lessee.

Express Covenants Option to Renew a Lease A lease may contain a term granting the lessee an option to renew the lease for a further period. It is an interest in the land, is capable of assignment, and is binding on a purchaser of the freehold with notice or, where the land is registered, is binding on purchasers if protected by an entry on the register or certificate of title. A lessee who seeks to exercise the option must abide by any terms or conditions as to its exercise expressed in the lease. If the option is made conditional on the lessee having complied with all the terms of the lease, any breach of covenant existing at the relevant date will disentitle the lessee from exercising the option.