End of Tenancy Claims - Landlord Flashcards
What are the main end of tenancy claims a landlord can make?
Dilapidations
What are Dilapidations?
Where the tenant fails to meet his obligations under the tenancy agreement.
For example, not maintaining buildings, keeping pasture in good order, keeping ditches clear.
What authority is there to make a claim?
86 Act - ss.71-73 for deterioration or damage
95 Act - No statutory provisions - refer to the terms of the tenancy
Timescales under the 86 Act?
s.83
LL to serve on the T notice of his intention to make a claim specifying the nature of the claim and must be served within 2 months of the termination date.
If the claim hasn’t been settled after 8 months, an arbitrator may be appointed.
What are the claims?
s.71(3) - Making a claim under the terms of the agreement
S.71(1) Claim for dilapidations or deterioration of the holding caused by the tenants non-fulfilment of the rules of good husbandry
What does s.71(5) state
The claim is capped at the diminution on the value of the landlords reservation in the holding.
This simply means the claim is capped by the the amount the dilapidations have reduced the value of the property.
What about FBT’s
There are no statutory provisions within the act that allow a LL to claim dilapidations from the tenant.
FBTs have freedom of contract and so it is common practice to include a clause within the agreement dealing with this matter.
This usually follows the same basis as a tenants improvement - increase in value of the holding
How is this dealt with in real life?
In practice, it is usual for the LL and T to have this conversations months in advance of the termination date.
This will allow the tenant time to remedy the areas of deterioration before the end of the tenancy.
Making the claim
LL must first serve on the tenant notice of his intention to make a claim within 2 months of the termination date and must included the basis of the claim (terms of the tenancy).
This should also be accompanied with a detailed claim setting out the areas of dilapidation and the cost of putting right.
Basis of claim
Cost of Making Good
Preparing the claim
The claim should be set out describing the items of disrepair and then the cost of putting right.
- Field, building or other item
- The problem
- The remedy
- The unit cost
- The claimed figure