5. Tenant's Duties

Question 1

What is the Tenant’s duty regarding waste?

Answer 1

(Same as Life Tenants)

If Tenant at fault;

• NO voluntary waste (NOT intentional/negligent)
• NO permissive waste (Liable for ordinary repair, NOT wear + tear) (Liable for cost of damage, NOT cost of repair)
• NO ameliorative waste (Liable for restoration costs)

If Tenant + Landlord NOT at fault (e.g. fire);

• NO need to repair
• Tenant can terminate lease (majority view)

Question 2

When is the Tenant liable for covenant to repair?

Answer 2

Commercial leases

• If Tenant breaches covenant (by Landlord’s assessment) => Tenant is liable to repair
• NOT ‘repair’ structural defects/casualties/TP damages (UNLESS expressly agreed otherwise)

NOT residential leases

• Landlord is liable to repair (warranty of habitability)
• Landlord is NOT liable for Tenant’s damages

Question 3

What are Landlord’s options if Tenant uses the property for illegal purposes?

Answer 3

Terminate lease

Damages

Injunctive relief

Question 4

What are the Tenant’s rights and liabilities regarding security deposits?

Answer 4

Tenant’s rights

• Receive interest on deposit from Landlord
• Claim punitive/statutory damages for Landlord’s refusal to return deposit

Tenant’s liabilities
- 1 month’s rent

Question 5

What are the Tenant’s duties to pay rent if the lease is terminated early?

Answer 5

Termination of lease
- Tenant must pay ‘proportionate’ amount of agreed rent

Tenant’s surrender of lease

• Tenant’s duty to pay rent ends
• Surrender in writing (lease > 1 year) (SOF)

Question 6

What are Landlord’s rights if Tenant fails to pay rent?

Answer 6

Evict Tenant

Sue for due rent

Assert lien on Tenant’s personal property left in the premises

Question 7

What are the Landlord’s rights if Tenant abandons the property?

Answer 7

1) Unjustifiable abandonment

2) Majority view
- Mitigate damages (repossess) + re-let
- Accept as surrender (implied) => Tenant liable for rent accrued + damages (NOT balance of rent)
- NOT accept as surrender + NO re-let => Tenant is liable for balance of rent LESS fair rental value
- NOT accept as surrender + Re-let => Tenant is liable for balance of rent LESS rent from re-letting

2) Minority view (common law)
- NOT mitigate damages
- Tenant liable for rent accrued from abandonment to lawsuit
- Tenant NOT liable for balance of rent (NO anticipatory repudiation)

Question 8

What is required for surrender?

Answer 8

1) Tenant vacates premises
2) Tenant makes written notice re NO intent to return
3) Clear

NOT

• Landlord’s repairs
• Landlord receiving back keys
• Landlord offering to re-let premises on Tenant’s behalf