Landlords Strategy for Tenant Breaches Flashcards
What are the landlord’s option for non-payment of rent breaches?
1) Debt action
2) CRAR
3) Forfeiture
What are pros of debt action for rent?
Simple, clear amount due
What are cons of debt action for rent?
Costly and time-consuming court process
What can debt action be used for in rent?
All lease sums (rent, service charge)
What are pros of CRAR?
Quick, efficient, avoids court
What are cons of CRAR?
Must follow strict procedure
What can CRAR be used for?
Principal rent only (no insurance, service charge)
What are pros of forfeiture for non-payment?
Quick, no court, strong deterrent
What are cons of forfeiture for non-payment?
Risk of losing tenant
What are landlord’s options for repairing breaches?
1) Damages
2) Forfeiture
3) Self-help
4) Specific performance
What are pros of damages for repairing breaches?
Minimal
What are cons of damages for repairing breaches?
S146 notice, tenant may counter-notice, damages limited to reduction in reversion value
What are pros of forfeiture for repairing breaches?
Minimal
What are cons of forfeiture for repairing breaches?
S146 + counter-notice issues
What are pros of self-help clause?
Quick, avoids court, full cost recoverable as debt
What are cons of self-help clause?
Must not exceed lease powers
What are pros of specific performance for repairing breaches?
Only option in rare cases
What are cons of specific performance for repairing breaches?
Exceptional cases
What are the remedies involving security?
1) Guarantor
2) Former tenant
3) Rent deposit deed
What are pros of having guarantor?
Better covenant strength
What are cons of having guarantor?
May become tenant via overriding lease
What are pros of going after former tenant?
May be more solvent
When can landlord go after former tenant?
Old lease or AGA
What are pros of rent deposit?
Quick, short term cash relief
