It’s no real surprise that landlords are responsible for the maintenance and repair of the structure and common parts of the leasehold properties they own. But how far do their specific obligations reach?
Landlords should remember that they are bound by covenants contained in the lease agreement and it is important that they have a good understanding of these. However, other obligations may arise from contractual terms, statutory provisions or common law principles. These provisions may include requirements to repair the property, provide services, ensure quiet enjoyment, compliance with health and safety regulations etc.
Landlords also control the common areas of the building, which may include stairways, lifts, entrance, hallways and any other shared facilities. All landlords owe a duty of care to lawful users of the common areas, meaning that they are responsible for keeping the area safe and fit for human habitation. The frequency of maintenance of the outside of the building (as well as common areas) depends on the age of the building and the specific terms outlined in the lease, so it is important that these are considered before works are carried out.
All expenses for any repairs to the common areas or shared facilities would, in an ideal world, be covered by the payment of service charge; however, sometimes more costly repairs are required. In these circumstances, landlords are required to serve a Section 20 notice on the tenants, advising of the need for repairs, costs of the same and any amounts they will be required to cover.
In England and Wales, landlords are usually required to insure the dwelling under the standard terms of the lease, which includes the structure of the building and the common areas being insured against fire, flooding etc; however, the tenant (and their conveyancer) must always ensure that the lease includes appropriate provisions for insured risks to limit any liabilities.
But what happens when the building is damaged/demolished? It is likely that the landlord is to be responsible to rebuild or reinstate the premises using the funds received from any insurance claims, however, landlords are under no obligations to do so. A good solicitor would ensure that a specific clause of the lease protects the proprietor (and lender) and imposes obligations on the landlord for the use of insurance proceedings to rebuild or reinstate the property.
Failing this, the funds should be held on trust for the tenants as a minimum, and every person buying a property without such security should be made aware of the same to decide whether the proceed with such purchase based on the risks involved. It is essential to review the lease agreement to determine the extent of the landlord's responsibilities in such cases.
Landlords must ensure that lease agreements are carefully drafted to clearly define their obligations and protect their interests while complying with applicable legal standards. By understanding and adhering to these obligations, landlords can effectively manage their properties and maintain positive relationships with tenants.
If you require any assistance regarding any of the points listed in this article, do not hesitate to contact our Residential Property team via our website, who will be happy to help.
