Doubling your rent

It may seem anachronistic to rely on statute that is nearly 300 years old says commercial property agent Prop-Search, but if a tenant over-stays their welcome a landlord could depend on such pieces of legislation to potentially seek double rent.

On the expiry of a lease, which is outside of the security of tenure provisions of the Landlord & Tenant Act 1954, the tenant is obliged to give vacant possession back to the landlord on the expiry of the lease.  If the tenant ‘holds over’ after this period, the landlord may, in certain circumstances, be entitled to recover double rent or double the yearly rental value for the premises for the period that the tenant remains in occupation.

Samantha Jones, an Associate Director at Prop-Search, says: “Most commercial landlords and tenants will have heard of the Landlord and Tenant Act 1954, but few will know of two laws - the Landlord and Tenant Act 1730 and the Distress for Rent Act 1737 - brought about when King George II ruled, that are still in force today.”

Double rent may be demanded from a tenant under Section 1 of the Landlord and Tenant Act 1730 where the tenant wilfully remains in occupation after the expiry of its tenancy.  It is usual that the landlord will give the tenant notice demanding vacant possession on the contractual expiry date of the tenancy, which should specify that the landlord will claim double value if the tenant does not give up vacant possession on that day.

If the tenant does not provide vacant possession on that date, the landlord may claim double the yearly value of the property for the period in which the tenant remains in occupation.  It should be noted that this provision only applies to fixed term leases and year to year tenancies, but no shorter agreements.  It should also be remembered that the provision has no application where the tenant is entitled to stay in the premises after the expiry of the tenancy by reason of the security of tenure provisions contained in the Landlord and Tenant Act 1954.

Under the slightly more modern Distress for Rent Act 1737, landlords have another opportunity to double their rent.  If a tenant has the ability to give notice under the terms of its lease and has given the landlord a valid notice to vacate but fails to give vacant possession upon expiry of its notice, the landlord would be able to demand double rent from its tenant.  This increased level of rent can be charged for as long as the tenant remains in occupation.

Samantha Jones concludes: “The provisions of these Acts are often overlooked in circumstances where a landlord could reply on them.  Notwithstanding their age, the provisions remain a useful tool in a landlord’s armoury.  Tenants who overstay their welcome in rented premises should be aware of the potential cost of doing so.”

Further information or advice can be obtained from Prop-Search - Tel: 01933 223300 / 01604 492000 or its website: www.prop-search.com