LTPR Landlord Tenant Practice Reporter

The Landlord and Tenant Act 1954 (2 & 3 Eliz. 2 c. 56) is an act of the United Kingdom Parliament extending to England and Wales. Part II of the act is a statutory code governing business tenancies. Part I of the act, which deals with the protection of residential tenancies, is now largely superseded.

Part II of the act gives business tenants a degree of security of tenure. A business tenant protected by the act may not be evicted simply by the giving of notice to quit or by the ending of a fixed term of the tenancy. The landlord must serve a notice on the tenant, giving them an opportunity to respond.

Applicability
Part II of the Act applies to any tenancy where the property "is or includes premises which are occupied by the tenant and are so occupied for the purposes of a business carried on by him or for those and other purposes".

There are some exceptions from the Act. These are included in S.43. These include, mining leases, pubs and agricultural premises. The Act doesn't protect leases under a period of 6 months which hold no scope to renew. Both parties can agree not to be covered.

In Graysim Holdings Ltd v P.&O. Property Holdings Ltd the House of Lords considered the situation of a lease of a market hall to a tenant who then let individual market stalls to market traders. The questions was, whether the tenant could take advantage of the protection offered by the act. The House of Lords decided that the tenant could not be said to occupy for the purposes of the business that was being carried on there (which was being carried out by the market traders).

This decision was followed in Bassairi Limited v London Borough of Camden , where the tenant let out the bulk of the premises as furnished apartments. Again, it was held that the tenant did not occupy for the purposes of a business.

The Landlord and Tenant (Rent Control) Act 1949 (12, 13 & 14 Geo. VI c. 40) was an Act of Parliament in the United Kingdom, intended to control excessive rents being charged by landlords. It extended the provisions of the Furnished Houses (Rent Control) Act 1946.

The major new provisions of the Act were:

The protection of the Rent Restriction Acts was given to both landlords and tenants sharing certain types of accommodation.
Rent tribunals were given the power to extend the security of lease given to tenants indefinitely, in three-month periods, and to review lettings made for the first time since September 1939.
Tribunals could now review the premiums paid for accommodation as well as the rent itself, and payments for furniture and other articles. Excess premiums could be recoverable by a reduction in rent.

Eviction refers to the removal of a tenant from rental property by the landlord.

Depending on the laws of the jurisdiction, eviction is also known as unlawful detainer, summary possession, summary dispossess, forcible detainer, ejectment, and repossession, among others. Nevertheless, the term eviction is the most colloquially used in communications between the landlord and tenant.

Depending on the jurisdiction involved, before a tenant can be evicted, a landlord must win an eviction lawsuit or prevail in another step in the legal process. It should be born in mind that "eviction," as with "ejectment" and certain other related terms, has precise meanings only in certain historical contexts (e.g., under the English common law of past centuries), or with respect to specific jurisdictions. In present-day practice and procedure, there has come to be a wide variation in the content of these terms from jurisdiction to jurisdiction. One should not assume that all aspects of the discussions below will necessarily apply even in all states or other common law jurisdictions.

The Eviction Process

Flow Diagram of the Eviction Process in British Columbia, CanadaPlease also see Wikipedia:Legal disclaimer

Notice
Remember that the procedures for evictions are established by State law and they vary from state to state, and can even vary within a single State, in different Cities or Counties. The following are general rules only.

There are two types of evictions, termination for cause and termination without cause.

If a tenancy is being terminated for cause, the landlord must give the tenant notice, commonly called a notice to quit or notice to vacate. The tenant has a short amount of time (usually 3 to 5 days) to correct the error. The most commonly causes are nonpayment of rent or a breach of the lease (such as keeping a pet when pets are not allowed). In some cases, a landlord may post an unconditional quit notice, meaning the tenant can do nothing to correct the error. These are reserved for extreme cases such as failure to pay rent for multiple months or the apartment being used for criminal activity.

A tenancy can be terminated without cause if there is no lease or the lease is expiring, although further advance notice must be given (generally 1 to 3 months). In some areas, just cause eviction controls exist, making this type of eviction more difficult or illegal. Rent control ordinances or statutes may also affect a landlord's ability to terminate tenancy without cause. Also, if the housing is subsidized by a housing program of the federal government, federal laws and regulations will also apply.

In most places, the guidelines for evictions due to non-payment of rent are different from those forced as a result of other causes, such as breach of lease. When the reason for eviction is due to causes other than rent, many places have laws requiring the tenant to be given a specified amount of time before moving, which may be, for example, 30 days following all court procedings. But in the case of unpaid rent, eviction may occur within a few weeks following the due date for the rent. The exact amount of time is contingent upon the jurisdiction's guidelines and the load of cases in the jurisdiction's court system.

Summons and trial
If the tenant remains in possession of the property after the notice to quit has expired, the landlord then serves the tenant with a complaint. This requires the tenant to appear in court. If the tenant does not file an answer or appear in court, the landlord can then file for a default judgment and wins automatically. In the tenant's answer, they may state their side of the story, and provide affirmative defenses, such as the landlord not making required repairs or the tenant not being given proper notice.

When the answer is filed, a trial date is set. Eviction cases are often expedited since the issue is time-sensitive (the landlord loses rental income while the tenant remains in possession). If the judge sides with the tenant, the tenant remains in possession of the property, although any back rent due must still be paid. If the landlord wins, the tenant has a small window of time to move before the eviction takes place, generally less than a week, although the tenant can ask for a stay of execution if they need more time.

Right to Redemption
In most juridictions, a tenant who has failed to pay rent is granted a right to redemption, unless otherwise specified in court documents. Right to Redemption means that the tenant may cancel the eviction and remain in the rented property by payment the full amount of rent due plus all other fees owed to the landlord allowable under the law.

If the tenant continually fails to pays rent, resulting in the repeated filing of complaints by the landlord, the landlord may file for no right to redemption. This means that following an eviction trial, the case against the tenant will stand, and the tenant cannot remain in the property by payment of rent. The number of trials required before a landlord can make such a filing varies by jurisdiction.

Removal from the property
The landlord obtains a writ of possession from the court and presents it to a law enforcement officer. The officer posts a notice for the tenant that the officer will return to remove the tenant from the property on a certain day. On that day, the officer may physically remove the tenant and any other people on the property if they are still there. Any possessions of the tenant still on the property may be put in storage for the tenant, or considered abandoned, depending on local laws. The property is then turned over to the landlord.

Self-help evictions
In most jurisdictions, an eviction may only take place under the auspices of a law enforcement officer or a representative of the law as defined by the jurisdiction's laws. It is illegal in most places for the landlord to attempt to force the tenant off the property themselves, or to force them to move in other ways, such as shutting off heat or utilities, or changing locks. A tenant facing such measures may sue the landlord or file a counterclaim against an existing eviction proceeding.

Rent control refers to laws or ordinances that set price controls on the renting of residential housing. It functions as a price ceiling.

In the United States during World War I, rents were "controlled" through the efforts of local rent anti-profiteering committees and public pressure. From 1919 to 1924, a number of cities and states adopted rent and eviction control laws. Modern rent controls were first adopted in response to WWII-era shortages, or following Richard Nixon's 1971 wage and price controls. They remain in effect in some cities with large tenant populations, such as New York, San Francisco, Los Angeles, and Washington, DC. Smaller communities also have rent control, notably Santa Monica, Berkeley, and West Hollywood California along with many small towns in New Jersey. In recent years, rent control in some cities, such as Boston and Cambridge, Massachusetts, has been ended by state ballot.

In some regions rent control laws are more commonly adopted for mobile home parks. Reasons given for these laws include residents owning their homes (and renting the land), the high cost of moving "mobile" homes, and the loss of home value when they are moved. California, for example, has only 13 local apartment rent control laws but over 100 local mobile home rent control laws. No new mobile home parks have been built in California since 1991.

Purpose and scope
Although the political debate over rent control is far-reaching, as described below, the purposes and provisions of such laws are intended to be limited in scope. They define which rental units are affected, and may have only larger or older rental complexes covered by the law. The frequency and degree of rent increases are limited, usually to the rate of inflation defined by the Consumer Price Index or to a fraction thereof. (San Francisco, for example, allows annual rent increases of 60% of the CPI, up to a maximum 7%. ])

Unregulated rent increases may be allowed when a tenant moves ("vacancy decontrol"). Rent-control laws that don't include vacancy decontrol are called strong rent-control laws. Such laws were in effect in five California cities (West Hollywood, Santa Monica, Berkeley, East Palo Alto and Cotati) in 1996, when AB 1164 (known as the Costa/Hawkins Bill) made strong rent-control unenforceable in California (except in special cases like mobile home parks). .

Landlords have an opportunity to show that they are not receiving a fair return, for example by proving an increase in costs (such as capital improvements) that should be passed on to tenants. Tenants may be able to claim that decreased services or the lack of necessary repairs offset such additional increases or justify a rent reduction. Landlords may be required to register current rent levels or provide other information on rent increases and/or terminations of tenancy. (Since rent control laws vary considerably from jurisdiction to jurisdiction, landlords and tenants who may be affected should contact their local jurisdiction to obtain information on which law, if any, which applies to them.)

Rent control may be compared to zoning, where jurisdictions try to balance the rights of individual property owners with community interests. As with much urban planning, a successful balance may benefit both community values and property values, while an unsuccessful balance may have the opposite effect.

Argument in favor
It is necessary to prevent landlords from imposing rent increases that force key-workers or vulnerable people to leave an area. Maintaining a supply of affordable housing is essential to sustaining the economy. Homeowners who support rent control point to the neighborhood instability caused by high or frequent rent increases and the effect on schools, youth groups, and community organizations when tenants move more frequently.

It has been contended that housing is an inalienable positive human right that equals or exceeds the property rights of landlords. Therefore the needs of the tenant should supersede the needs of the landlord.

The rental-accommodation market suffers from information asymmetries and high transaction costs. Typically, a landlord has much more information about a home than a prospective tenant can reasonably detect. Moreover, once the tenant has moved in, the costs of moving again are very high. Unscrupulous landlords can thus conceal defects and, if the tenant complains, threaten to raise the rent at the end of the lease. With rent control, tenants can ensure that hidden defects at least be repaired to comply with code requirements, without fearing retaliatory rent increases. Rent control may thus compensate somewhat for inefficiencies of the housing market.

Income tax codes often provide benefits for housing owners, and rent control allows tenants to share in some of those benefits. In the United States, the Internal Revenue Code allows landlords to claim depreciation deductions for rental property even while increasing rents. Homeowners may also deduct property taxes and mortgage interest, and exclude capital gains, from their taxable income. Tenants get none of these housing-related deductions or exclusions. By limiting the extent to which landlords can raise rent on purportedly depreciated property, rent control thus enables tenants to participate in the benefits that the legal structure confers upon housing.

Argument against
The neutrality of this section is disputed.
Please see the discussion on the talk page.
This section has been tagged since October 2007.

Price ceilings can create shortages and reduce quality. It is argued that rent control creates a shortage of housing, reduces its quality, deters investment, and raises rents on tenants who are excluded from its protections (for example, in jurisdictions with vacancy decontrol, tenants who move or arrive later).

Furthermore, rent control may not be effective at lowering rents in the area under control. A rent control board or regulatory agency may be captured or politically influenced by the land owners or "landlords", and may be able to influence the regulatory process or "game the system" to the extent that the rent-controlled increases are more than what they would have been in the free market without the rent control law.

If a price is forcibly kept low, there will be higher demand. When demand outpaces supply, there is a shortage. However, since builders are restricted in the rents they may charge, they are less willing to construct more housing. Since supply is perpetually low, landlords also do not have to worry about tenants leaving - and there is little or no incentive to maintain the property. For example, unless the owner can reasonably expect that punitive action will be taken against them, they might let building maintenance deteriorate in order to mitigate the lower rental income. People moving into the city would have difficulty finding housing because of the shortage created by rent control.

Rent control laws are said to be a a textbook example of the problems that arise in trying to artificially reduce prices. The natural consequence in a free-market economy is a reduction in supply and consequent shortages.

Areas with rent-controlled housing are blamed for difficulty of finding vacant housing and the resulting power imbalance between landlords and tenants. Tenants have serious difficulty finding housing, so they are seriously disadvantaged if they must move. As a result, landlords can impose numerous conditions and requirements.

Rent control has been disavowed by some unlikely governments. Speaking in 1989, Vietnam's Foreign Minister Nguyen Co Thach said: "The Americans couldn't destroy Hanoi, but we have destroyed our city by very low rents. We realized it was stupid and that we must change policy."(http://www.econlib.org/Library/Enc/RentControl.html)

Moreover, it is argued that rent control violates the property rights of the property owners. Owners are limited in what they may do with their property, to some extent putting it to work for "the social good." In jurisdictions that do not already have rent control, introducing it may reduce the resale value of affected property. Rent control's benefits are said to accrue disproportionately to wealthy and well-connected tenants. The goal of making housing affordable and available to the poor can be accomplished better by the same free market that created the affordable units in the first place, or by government construction or subsidy.

Enforcement issues
Some landlords use extralegal means to evade rent controls and attempt to take advantage of housing conditions. Some landlords may step up discrimination against any group they dislike if they believe there is a surplus of prospective tenants. Jurisdictions that implement rent controls may have to pass laws in response, such as forbidding landlords from compelling new tenants to hire the landlord's moving company. In some areas with especially strict rent controls, landlords may require key money (a non-refundable deposit). Demanding key money is illegal in most of North America, but since the landlord will invariably demand it in cash, it is very difficult to trace and nearly impossible to prove in court.

A leasehold estate is an ownership interest in land in which a lessee or a tenant holds real property by some form of title from a lessor or landlord.

History
Whilst landlord-tenant laws had existed in places such as al-Andalus, the common law of the landlord-tenant relation evolved in England during the Middle Ages. That law still retains many archaic terms and principles pertinent to a feudal social order and an agrarian economy, where land was the primary economic asset and ownership of land was the primary source of rank and status. See also Lord of the Manor.

Modern leasehold estates can take one of forms — the fixed-term tenancy or tenancy for years, the periodic tenancy, the tenancy at will, and the tenancy at sufferance, all discussed below. Forms no longer used include socage and burgage.

When a landowner allows one or more persons, called "tenants," to use his land in some way for some fixed period of time, the land becomes a leasehold, and the resident (or worker) - landowner relation is called a "tenancy." A tenant pays rent (a form of consideration) to the landowner. The leasehold can include buildings and other improvements to the land. The tenant can do one or more of: farm the leasehold, live on it, or practice a trade on it.

Tenancy was essential to the feudal hierarchy; a lord would own land and his tenants became his vassals. However, it still happens today in many parts of the world. In the U.S.A., there are food co-ops which supply tenants with a place to grow their own produce. Rural tenancy is also a common practice. Under a rural tenancy, a person buys a large amount of land and the rural community uses it agriculturally as a source of income.

Fixed-term tenancy or tenancy for years
A fixed-term tenancy or tenancy for years lasts for some fixed period of time. Despite the name tenancy for years, such a tenancy can last for any period of time — even a tenancy for one week would be called a tenancy for years. At Common law the duration did not need to be certain, but could be conditioned upon the happening of some event, (e.g. "until the crops are ready for harvest", "until the war is over"). In many jurisdictions that possibility has been partially or totally abolished.

Termination of a fixed-term tenancy
The tenancy will come to an end automatically when the fixed term runs out, or, in the case of a tenancy that ends on the happening of an event, when the event occurs. It is also possible for a tenant, either expressly or impliedly, to give up the tenancy to the landlord. This process is known as a surrender of the lease.

Periodic tenancy
A periodic tenancy, also known as a tenancy from year to year, month to month, or week to week, is an estate that exists for some period of time determined by the term of the payment of rent. An oral lease for a tenancy of years that violates the Statute of Frauds (by committing to a lease of more than--depending on the jurisdiction--one year without a writing) may actually create a periodic tenancy, the construed term being dependent on the laws of the jurisdiction where the leased premises are located. In many jurisdictions the "default" tenancy, where the parties have not explicitly specified a different arrangement, and where none is presumed under local or business custom, is the month-to-month tenancy.

Termination of a periodic tenancy
The landlord may terminate the lease at any time by giving the tenant notice as required by statute. Typically, the landlord must give six months' notice to terminate a tenancy from year to year. Tenants of lesser durations must typically receive notice equal to the period of the tenancy - for example, the landlord must give a month's notice to terminate a tenancy from month to month. However, many jurisdictions have varied these required notice periods, and some have reduced them drastically.

The notice must also state the effective date of termination, which, in many jurisdictions, must be on the last day of the payment period. In other words, if a month-to-month tenancy began on the 15th of the month, in such a jurisdiction the termination could not be on the 20th of the following month, even though this would give the tenant more than the required one month's notice.

Tenancy at will
A tenancy at will is a leasehold such that either the landlord or the tenant may terminate the tenancy at any time by giving reasonable notice. It usually occurs in the absence of a lease, or where the tenancy is not for consideration. Under the modern common law, tenancy at will is very rare, partly because it can only come about if the parties expressly agree that the tenancy is at will and not for rent. However, tenancy at will is common where a family member is allowed to live in the home (a nominal consideration may be required) without any formal arrangements. In most residential tenancies for consideration, the tenant may not be removed except for cause, even if there is no written lease.

If a lease exists at the sole discretion of the landlord, it grants the tenant by operation of law a reciprocal right to terminate the lease at will. However, a lease that explicitly exists at the will of the tenant (e.g. "for as long as the tenant desires to live on this land") does not imply that the landlord may terminate the lease, even for cause; rather, such language may be interpreted as granting the tenant a life estate or even a fee simple.

A tenancy at will is broken, again by operation of law, if the:

Tenant commits waste against the property;
Tenant attempts to assign his tenancy;
Landlord transfers his interest in the property;
Landlord leases the property to another person;
Tenant or landlord dies.

Tenancy at sufferance
A tenancy at sufferance (sometimes called a holdover tenancy) exists when a tenant remains in possession of property after the expiration of his lease, and until the landlord acts to eject the tenant from the property. Although the tenant is technically a trespasser at this point, and possession of this type is not a true estate in land, authorities recognize the condition in order to hold the tenant liable for rent. The landlord may evict such a tenant at any time, and without notice.

The landlord may also impose a new lease on the holdover tenant. For a residential tenancy, this new tenancy is month to month. For a commercial tenancy of more than a year, the new tenancy is year to year; otherwise it is the same period as the period before the original lease expired. In either case, the landlord can raise the rent, so long as the landlord has told the tenant of the higher rent before the expiration of the original lease.

Controlled Tenancy UK
A type of protected tenancy that was created before 6 July 1957. From November 28, 1980 all controlled tenancies were changed to regulated tenancies

Duties of the landlord and the tenant

Duties of the landlord
The landlord has two common-law duties. The first is to put the tenant in possession of the land at the outset of the lease (the 'English' rule); the second is to provide the premises in a habitable condition — there is an implied warranty of habitability. If landlord violates either, the tenant can terminate the lease and move out, or stay on the premises, while continuing to pay rent, and sue the landlord for damages (or withhold rent and use breach of implied warranty of habitability as a defense when the landlord attempts to collect rent).

The lease also includes an implied covenant of quiet enjoyment — landlord will not interfere with tenant's quiet enjoyment. This can be breached in three ways.

Total eviction of the tenant through direct physical invasion by landlord.
Partial eviction — when the landlord keeps the tenant off part of the leased property (even locking a single room). Tenant can stay on the remaining property without paying any rent.
Partial eviction by someone other than landlord — where this occurs, rent is apportioned. If landlord claims to lease tenant an area of 1000 square metres but 400 square metres of the area belongs to another person, tenant only has to pay 60% of the rent.

Landlord's tort liability
Under the common law, the landlord had no duties to the tenant to protect the tenant or the tenant's licensees and invitees, except in the following situations:

Failure to disclose latent defects of which the landlord knows or has reason to know. Note that the landlord has no duty to repair, just to disclose.
For a short term lease (3 months or less) of a furnished dwelling, the tenants are treated as invitees, and the landlord is liable for defects even if the landlord neither knows nor should know of them.
Common areas under landlord's control (e.g. hallways in an apartment building), if the landlord failed to use reasonable care in maintaining them.
Injury resulting from landlord's negligent repairs — even if the landlord used all due care.
Public use, if the following three factors exist:
Landlord knows or should know that the tenant makes public use of the land (e.g. the land is rented for use as a restaurant or a store);
Landlord knows or should know that there is a defect; and
Landlord knows or should know that the tenant will not fix the defect.

Duties of the tenant
Under the common law, the tenant has two duties to the landlord. These are to pay rent when it is due, and to avoid waste of the property.

A tenant is liable to third party invitees for negligent failure to correct a dangerous condition on the premise — even if the landlord was contractually liable.

Effects of condemnation
If land under lease to a tenant is condemned under the government's power of eminent domain, the tenant may be able to earn either a reduction in rent or a portion of the condemnation award (the price paid by the government) to the owner, depending on the amount of land taken, and the value of the leasehold property.

A partial taking of the land by the government does not release the tenant from paying full rent, but the tenant may collect a portion of condemnation award equal to the apportioned rent for property taken. For example, suppose a tenant leases land for 6 months for $1,000 per month, and that two months into the lease, and the government condemns 25% of the land. The tenant will then be entitled to take a portion of the condemnation award equal to 25% of the rent due for the remaining four months of the lease — $1,000, derived from $250 per month for four months.

A full taking, however, extinguishes the lease, and excuses all rent from that point. However, the tenant will not be entitled to any portion of the condemnation award, unless the value of the lease was greater than the rent paid, in which case the tenant can recover the difference. Suppose in the above example that the market value of the land being leased was actually $1,200 a month, but the $1,000 per month rate represented a break given to the tenant by the landlord. Because the tenant is losing the ability to continue renting the land at this bargain rate (and probably must move to more expensive land), the tenant will be entitled to the difference between the lease rate and the market value — $200 per month for a total of $800.

Effects of tenancy
Many adverse effects come from this system. Tenants have to pay the landowner even though they are doing all of the agricultural work. In a sense, it is a cycle where the tenant is never really able to become a landowner because they constantly to pay the landowner, as well as other expenses. If a crop does not flourish, the tenant will still have to pay for the use of the land. The landowner, since he is ultimately owner of the land, also can have a say in what the tenant uses the land for or what he can or cannot grow. On the contrary, rural tenancy has advantages. If a person owns too much land for just their family to use, tenants can rent it out and make use of the land. Also, if a landowner rents out the land, it can be a source of economic income for the tenant which may not have previously existed. In poorer communities, rural tenancy can give the tenants a chance to grow crops to sell in markets and to feed their families

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