Search results
1 – 10 of over 2000This legal update examines recent decisions on the security of tenure given by Landlord and Tenant Act 1954 to business tenants, and asks whether it is time to revisit or remove a…
Abstract
Purpose
This legal update examines recent decisions on the security of tenure given by Landlord and Tenant Act 1954 to business tenants, and asks whether it is time to revisit or remove a piece of legislation that was drafted to deal with the consequences of war damage and short supply of commercial premises during the 1950s. It highlights the narrow, technical rules and distinctions that make little sense to commercial parties. The paper aims to discuss these issues.
Design/methodology/approach
The paper considers recent court rulings in the light of the original purpose of the Landlord and Tenant Act 1954, focusing on provisions that were reformed in 1969-reflect changes in market conditions since the immediate post-Second World War period.
Findings
Narrow, technical rules and exceptions carry considerable risks for commercial landlords and may not be appropriate or necessary in current market conditions.
Research limitations/implications
The paper examines only a recent selection of court rulings, but highlights the potentially harsh impact on commercial landlords of legislation designed to protect tenant interests in market conditions radically different from those prevailing some 60 years after its enactment.
Practical implications
With no immediate prospect of reform, the paper highlights the need for landlords to adhere closely to the precise technical requirements of the Act.
Originality/value
The paper is based on the author’s reading and analysis of recent Court of Appeal rulings.
Malcolm Dowden and Emma Humphreys
Difficult economic and trading conditions make lease break options a point of significant legal tension between commercial landlords and tenants. For a tenant, the ability to…
Abstract
Purpose
Difficult economic and trading conditions make lease break options a point of significant legal tension between commercial landlords and tenants. For a tenant, the ability to break a lease provides a means of controlling costs and an exit from liabilities. For landlords, the loss of a tenant's covenant means an immediate adverse effect on the reversionary value of the property. The purpose of this paper is to examine recent English court rulings to highlight the need for strict compliance with break conditions if a tenant is to succeed in ending its liabilities.
Design/methodology/approach
The paper discusses recent rulings to assess the extent to which judicial interpretation of break clauses continues to favour landlords, and whether landlords' conduct in negotiations or correspondence leading up to the exercise of a tenant's break option might engage concepts such as estoppel to bind the landlord to a particular level of compliance or breach.
Findings
The paper concludes that the English court continues to apply a strict approach to compliance with break conditions, and that it remains the tenant's responsibility both to determine what needs to be done by way of compliance and to ensure that those steps are taken.
Originality/value
The authors place the most recent rulings on the perennially vexed issue of compliance with break conditions into a broader context, demonstrating that the judicial approach remains firmly based on the principle that a break option is negotiated for the tenant's benefit, and that any conditions precedent to exercise are highly likely to be construed against the tenant who agreed to a break conditional on anything other than service of notice.
Details
Keywords
In February 1984 Mr Ian Gow, the then Minister of Housing and Construction, established a Committee of Inquiry on the management of privately owned blocks of flats, under the…
Abstract
In February 1984 Mr Ian Gow, the then Minister of Housing and Construction, established a Committee of Inquiry on the management of privately owned blocks of flats, under the chairmanship of the distinguished barrister Edward Nugee QC. The committee's report was published in the summer of 1985 and many of its recommendations are now set to become law. The proposed legislative changes will have major implications for both landlords and tenants of blocks of flats. The Nugee Report was the culmination of a series of papers in the past few years reflecting an increasing concern over the state of many blocks of flats. Recent publications on the subject include the James Report, produced by a working party established by the Royal Institution of Chartered Surveyors, and a paper emanating from the Building Societies Association entitled ‘Leasehold — Time for Change’ which urged the adoption of a system of strata title for properties in multiple occupation. No one should underestimate the difficulties which the Committee of Inquiry faced. ‘Bad flat management’ covers a multitude of different situations which can be viewed from numerous different perspectives. Disputes are not just confined to those between landlord and tenant. There are conflicts between the tenants themselves, particularly in older blocks built to be rented but broken up by the grant of long leases. Add to this the further complication that many blocks are now run by managing agents who may themselves be involved in battles with either the landlord or his tenants, and it will rapidly become clear that there were no simple solutions to be found. Each recommendation had to take account of all the potential problems and not simply tackle one at the expense of exacerbating another.
In formulating his theory of land rent, Ricardo did not take into account the fact that in the Europe of his time relationships between landlords and tenants were often regulated…
Abstract
In formulating his theory of land rent, Ricardo did not take into account the fact that in the Europe of his time relationships between landlords and tenants were often regulated by customs that kept rents below marginal product, sometimes even in the long term. Since all those customs had a number of points in common, understanding the logic governing one of them can be a very useful way to gain an overall understanding of the phenomenon. This chapter analyses a case of such customs in the area of market-gardens surrounding the city of Valencia, eastern Spain. Here, tenants were by custom the owners of the improvements they carried out, agricultural efficiency increased, and land rents stagnated. The chapter addresses issues such as cooperation among large groups of people, definition of rights and the creation of property rights by means of social conventions that clashed with law.
Details
Keywords
Fauster Agbenyo, Miller Williams Appau and Eunice Yorgri
This paper aims to examine landlords’ health support systems to tenants to control COVID-19 in selected informal settlement rental housing (ISRH) in Ghana, dwelling on landlords’…
Abstract
Purpose
This paper aims to examine landlords’ health support systems to tenants to control COVID-19 in selected informal settlement rental housing (ISRH) in Ghana, dwelling on landlords’ views.
Design/methodology/approach
The paper used the concurrent imbedded mixed-methods approach and grounded the findings in the socio-ecological theory. The authors collected both qualitative and quantitative data from 242 landlords in 13 informal settlements across Ghana using quotas. The authors undertook semi-structured face-to-face and telephone interviews. The authors conducted content and thematic qualitative data analysis and used simple descriptive statistical data analysis.
Findings
The paper discovered that tenants had limited knowledge on the transmission of the pandemic, forcing landlords to regulate their building services usage, ventilation and thermal control, entertainment, common areas and rent advancement for tenants to control the pandemic. Also, tenants found it difficult to comply with the rules on ventilation for fear of criminal attacks, while high social connection and interaction among renters and inadequate enforcement caused the non-adherence by renters to social gathering. Again, landlords had difficulty in contract-tracing visitors suspected to be infected with the virus.
Originality/value
The use of concurrent and imbedded mixed methods to investigate landlords’ viewpoints on their support in health needs of their tenants to regulate COVID-19. The prescriptions from the study provide practical applications to formulate a mix of housing and health policies to formalize the support of landlords to their tenants in ISRH in Ghana.
Details
Keywords
Berndt Allan Lundgren, Cecilia Hermansson, Filip Gyllenberg and Johan Koppfeldt
The purpose is to increase knowledge of rent negotiations by investigating differences in beliefs held by property landlords and retailers on factors that they deem important in…
Abstract
Purpose
The purpose is to increase knowledge of rent negotiations by investigating differences in beliefs held by property landlords and retailers on factors that they deem important in rent negotiation.
Design/methodology/approach
This study investigates differences in subjective beliefs held by landlords and retail trade tenants on factors that affect rent levels during the rent negotiation process using a factor analysis approach. Semi-structured interviews were made with seven large real estate owners/landlords and retailers and eight experts in negotiating retail rent to elicit variables that have an impact on retail rent. Thereafter, a web-based survey was sent to 421 respondents who had experience in rent negotiation. Several factors were extracted using factor analysis. The data collection was made in Sweden during the coronavirus disease 2019 (COVID-19) pandemic in late spring 2021
Findings
Significant differences are found in beliefs held by landlords and retail trade tenants in four out of seven-factor: regional growth, e-commerce, customer focus and trust. Landlords rate these factors higher than retailers do. There are also systematic differences between landlords and retailers depending on their education levels on the following factors: rent and vacancies, e-commerce and customer focus. The number of years of experience did not prove to be significant instead differences are found to exist in factors
Research limitations/implications
Not only do traditional factors of importance, such as lease structure, the effect of location, size and anchor or non-anchor tenants, have an effect on negotiated rent levels. Differences in other factors also exist, such as regional growth, e-commerce, customer focus and trust factors that may play an important role in the negation of retail rent.
Practical implications
The findings provide new insights into the different views on factors that affect rent negotiations between landlords and retail tenants. Knowledge of such differences may increase the overall transparency in the negotiation process. Transparency may be increased by putting forward information on these factors before a negotiation takes place, in order to smooth differences in their beliefs.
Social implications
If transparency in the negotiation process of retail rent increases, time to reach an agreement, stress and anxiety can be reduced by putting forward information on factors where differences exist between landlords and retailers
Originality/value
New insights on retail rent negotiation have been put forward in this research paper. Not only do traditional factors such as lease structure matters, but subjective beliefs on factors such as regional growth and the level of education are also important, as this study has shown using a factors analysis approach.
Details
Keywords
John Dewey and Joseph Yiu
Every day, landlords and tenants are confronted with the dilemma of financing tenant improvements. Both parties see financing tenant improvements as a necessity. The landlord sees…
Abstract
Every day, landlords and tenants are confronted with the dilemma of financing tenant improvements. Both parties see financing tenant improvements as a necessity. The landlord sees his tenant improvement investment as a necessity to consummate leasing transactions, while the tenant sees its tenant improvement investment as a necessity to build out vacant space. But at the end of the day, the investment dilutes the balance sheet for both parties since tenant improvements are non‐earning depreciating assets with no residual value. This paper introduces a new financing methodology for tenant improvements that take both the landlord and tenant out of the business of financing these non‐earning assets.
Details
Keywords
Appau Williams Miller, Fauster Agbenyo and Royal Mabakeng Menare
The purpose of this study is to evaluate the roles of landlords in tenant management during COVID-19 pandemic season among informal settlement neighbourhoods in urban Ghana.
Abstract
Purpose
The purpose of this study is to evaluate the roles of landlords in tenant management during COVID-19 pandemic season among informal settlement neighbourhoods in urban Ghana.
Design/methodology/approach
This study used a mixed methods research approach and foregrounds the discussions of the results with the social roles theory. Using the quota sampling procedure, this study used 467 semi-structured interviews of tenants from five old informal settlement neighbourhoods in urban Ghana. This study adopted the thematic analytical technique in the results section.
Findings
This study uncovered that landlords perform a gate-keeping social relationship role in ensuring tenant safety during the COVID-19 pandemic season through the provision of security, care and support, discipline, hard work, morale building to accountability. However, this study found that most landlords do not provide tenancy agreements to tenants which strained some social relationships in tenant management.
Originality/value
The application of social roles theory in this study provides a cutting-edge approach to the study of welfare of tenants living in informal settlement housing units during periods of pandemic. This study practically provides a participatory approach to analysing and discussing the roles of landlords in tenant management and proffering solutions for formalisation of these roles in housing policies in Ghana.
Details
Keywords
No matter the size or scope of a biotech laboratory project, neither landlords nor tenants should rely on traditional ‘form’ documents to address the many complex leasing issues…
Abstract
No matter the size or scope of a biotech laboratory project, neither landlords nor tenants should rely on traditional ‘form’ documents to address the many complex leasing issues unique to this industry. When negotiating and documenting a biotech lab lease, five clauses warrant particular attention. ‐ Construction of tenant improvements: Build‐outs of lab space can be highly specialised and elaborate. Tenants will require detailed involvement in design and construction of improvements while landlords may limit, to the extent possible, tenant improvements to those that are financeable, resuable and ‘generic’. ‐ Security deposits: Greater security in the form of a deposit and letter of credit may be required to balance the potentially higher risks and longer terms of many biotech laboratory leases. ‐ Hazardous materials: Most biotech laboratories will work with hazardous materials. Specially tailored lease provisions can help limit liability and mitigate the potential costs of removal, remediation and litigation. ‐ Building services and utilities: Biotech users may require high levels of heating, ventilation and air conditioning (HVAC), plumbing, electrical and janitorial services. Lease provisions for services and utilities should be tailored to the unique intended use of biotech premises. ‐ Assignment of sublease: Given the rapidly changing nature of the science, tenants may require added flexibility to sublease space or to assign the entire interest in the lease. Although these five clauses address only some of the many issues that landlords and tenants should consider in biotech lab leases, they have implications that echo throughout the lease.
Details
Keywords
The paper aims to explore the potential impact that the introduction of the UK's carbon reduction commitment (CRC) energy efficiency scheme will have on: energy use in the…
Abstract
Purpose
The paper aims to explore the potential impact that the introduction of the UK's carbon reduction commitment (CRC) energy efficiency scheme will have on: energy use in the tenanted commercial built environment; and the idea of the net lease.
Design/methodology/approach
The paper reviews various background documents preceding the implementation of CRC in order to identify the abatement incentives established. The common structure of commercial leases and the early property market reaction to CRC are also considered in order to explore how effective the CRC scheme is likely to be in achieving the twin goals of carbon saving and landlord‐tenant collaboration.
Findings
Key to the success of the CRC scheme will be the way in which the financial and reputational drivers established by the CRC scheme incentivise landlords and tenants to make technological and social changes to reduce energy consumption. Given the variety of ways that energy is supplied to tenanted commercial property, the complexity of the CRC scheme, the traditionally adversarial relations between landlords and tenants and the “split‐incentive” of commercial leases, energy abatement opportunities are found to be significantly more limited in the leasehold context than for owner‐occupied properties. Nonetheless, the paper notes that the introduction of the CRC scheme has begun an important conversation and is an important step towards tackling energy efficiency.
Originality/value
The paper brings together understandings of the legal framework of commercial leases, of the property market and practice, and the landlord and tenant relationship – to consider how the CRC scheme will help to deliver the UK's goal of reducing carbon emissions.
Details