Landlord and Tenant Level 3 Flashcards
Gamston Bridge - Explain your advice to the Council regarding the ‘worst case scenario’.
I advised that the allotment association is compromised of elderly volunteers. They have no means to fight a legal battle and wont want to deal with the hassle. Worst case they serve notice leaving the council to manage the allotments.
Gamston Bridge - Why would the Sub Tenant bring about legal action? Wouldn’t that be your role as Head Lessor?
They didn’t want to vacate the plot, they were willing to fight for the right to remain in occupation.
Gamston Bridge - How did you deal with this issue?
I studied the licence in question and also the subsequent letter. I then advised that we couldn’t legally represent the allotment association but did offer some suggestions for them to update their sub lease.
Unit 5 Cotgrave Shopping Centre - Explain your advice regarding how you knew the tenant may not be able to afford the rent?
This was through previous conversations with the tenant, also they needed support during Covid, and the increase would almost double the rent.
Unit 5 Cotgrave Shopping Centre - How could you override the lease and suddenly decide, mid term to adopt an RPI or stepped rent approach?
Through mutual agreement between both parties of the lease. In this scenario a letter was sufficient, however we could have used a Deed of Variation or lease amendment form.
Unit 5 Cotgrave Shopping Centre - Explain the advice you gave regarding the ‘other options’.
Decided through cooperation with my manager, needed to consider other options for them, our common rent reviews are Open Market and RPI and we looked at both. Then we looked at common RPI caps used and decided to use stepped rent based on 8% caps.
What are your Landlord and Tenant Level 3 examples?
Gamston Bridge Allotments
A sub-tenant refused to vacate an allotment plot after our tenant, the allotment association, served them with notice to vacate for breach of contract.
I advised the Council as to the worst-case scenario here, the risk was that as the association is made up of volunteers, the threat of legal action against them by the sub-tenant could scare them into disbanding as they were not equipped to fight a legal battle.
The Council then would not have the resources required to deal with all the allotments that would need managing.
Therefore, I studied the exact terms and wording of the contract and provided guidance to the allotment association as to how to deal with the sub-tenant.
Unit 5 Cotgrave Shopping Centre
Rent review was due to Open Market Rent, upon gathering comparable evidence I advised the Council that the business likely would not be able to afford the increase in rent.
Before beginning negotiations with the tenant, I produced a report for the Council advising some other options, including an increase via RPI, or implementation of a stepped rent increase over the remainder of the term. Calculating the amounts for each option showed that the cheapest one was the stepped rent, this was chosen.
Upon offering this option to the tenant they were informed of what other options were considered and this saved time as they accepted without the need to negotiate.
How are rent review disputes normally resolved and where can you find the information?
Normally I would resolve by negotiating with the tenant. If negotiations dont work then the Rent Review clause in the lease states that an Independant Expert will determine the answer. They act as an expert and not an arbitrator. Their decission is final and binding. The landlord and tenant are able to make representations to the expert. Expert gets to choose how their costs are split.
When is a mediator or arbitrator used? Where might this be stated?
Any dispute could lead to mediation or arbitration, often could be used for inside the act lease renewals. Or for parties trying to recover property related costs. It is often stated in the contract.
Articulate the role of the surveyor when giving evidence as an Expert and to whom is the experts duty of care?
When giving advice as an expert the surveyor needs to be competent and knowledgable. They need to back up their decision with evidence.
Their responsibility is to the court.
