COVID-19 Webinars: Supporting Businesses in a Time of Crisis | Webinar #9

Managing Landlord & Tenant Issues in a Covid-19 World

Today’s Presenters

Alistair Walters Partner

awalters@campbellslegal.com

James Austin-Smith Counsel

jaustin-smith@campbellslegal.com

Natasha Partos Associate

npartos@campbellslegal.com

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Overview • Legislative background to residential and commercial landlord and tenant relationships • Contractual relationships between commercial landlord and tenants • Practical considerations during Covid-19 • Q&A

Residential Tenancies The Residential Tenancies Law 2009 (the “ Tenancies Law”) • • •

Scope of the Law; Requirement for written agreements (ss.14 -15 of the Tenancies Law); and Variations of tenancy agreements between the parties (s.17 of the Tenancies Law)

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Tenant’s Obligations •

During the tenancy, the tenant is obliged to pay: – the rent payable under the tenancy agreement; and – any other outgoings pursuant to the tenancy agreement (s.36 of the Tenancies Law).

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After a tenancy has expired or been terminated a tenant remains liable to pay: – outstanding rent – compensation; and – occupational rent (s.55 of the Tenancies Law). campbellslegal.com

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Landlord’s Obligations During a tenancy, a Landlord is obliged to: – Keep the tenant’s security deposit in trust (s.21 of the Tenancies Law); – Keep proper business records (s.28 (1) of the Tenancies Law); – Ensure that the tenant has quiet enjoyment of the property (s.34 of the Tenancies Law); – Respect his restricted access to the property (s.41 of the Tenancies Law); – Give adequate notice of a termination of a lease (ss.50-51 of the Tenancies Law).

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Part VI of the Law- Landlord’s rights to possession and compensation • • •

Right to recover unpaid rent (s.55(1) of the Tenancies Law) Rights to re-enter the property (s.57of the Tenancies Law) Right to evict tenants/proceedings for rent arrears (ss.58-59 of the Tenancies Law).

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Registered Land Law (2018 Revision) (the “Land Law”) Periodical Tenancies: • “Tenancy from year to year, half year to half year, quarter to quarter, month to month, week to week” (Land Law) • Occupation without an agreement in writing (s.45 Land Law)

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Commercial Tenancies • • • •

Termination and notice requirements (s.56 and 61 of the Land Law) Relief from forfeiture (s.57 Land Law) Right to re-enter Right to recover rent

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Beyond the Law…

First Steps     

Check your lease Check your insurance Talk to your bank Talk to your tenant/landlord Talk to your lawyer

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Lease/Contract  Needs to be determined on a case by case basis  COVID-19 unlikely to lead to “frustration” of contract  Ambiguity and Contra proferentem

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Insurance  Insurance contracts need to be analysed on a case by case basis  May have business continuity cover  Unlikely to have pandemic cover  Mitigation of loss

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Bank  Early engagement vital  Prepare before you call – have a plan  Reflect any discussions in writing  Amend any contract IN WRITING

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Talk to Each Other  Reduced/delayed rent better than no rent  Reduced/delayed rent cheaper than litigation  Reputational issues  Consider renegotiation payment timing, basis for calculation of rent  If amending contract get legal advice first and DO IT IN WRITING

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Particular issues  Repair  Deep cleaning  Access

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Litigation  A last resort  Take legal advice early to avoid it  Keep all key documents (including emails)  Make sure all negotiations/variations recorded in writing  Once counsel instructed make sure you only go through them

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The Future  COVID-19 and Government’s plans  Monitor  Maintain engagement

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Questions?

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