Tuesday, 30 August 2011

Know Your Rights and Obligations as a Landlord

In landlord and tenant agreement, both parties enjoy certain rights and are also bound by some obligations.
In this article, our focus shall be on the rights and obligations of the landlord.
Rights of Landlord
As owner of the property, the landlord is entitled to the following rights:
1 Right to Collect Rent
In consideration of letting the premises, the landlord is entitled to collect rent. He can, therefore, enforce his right by compelling the tenant to pay the rent due.
2 Reversionary Right
On expiration of tenancy, unless there is an option to renew the tenancy, the interest in the property reverts to the landlord. In fact, this is what distinguishes a landlord from the tenant. While a tenant has exclusive possession of the premises while the tenancy lasts; the landlord remains the owner of the property and once the tenancy expires, the interest in the property reverts to him; he takes possession of his property.
3 Right to Enter Premises and Inspect
The general rule is that in any tenancy agreement, the tenant has exclusive possession to the premises and can sue the landlord for trespass. However, there is an exception to this. The exception is that the landlord has the right to enter the premises and inspect the premises for purpose of carrying out repair. So, in this regard, the tenant is under an obligation to permit the landlord to enter the premises.
4 Right to Recover Possession
Where a tenancy expires, the tenant is under obligation to deliver up possession. Where he fails to do so, the landlord can enforce his right to recover possession of his premises.
Now, there is lawful procedure for enforcing this right. You don’t just enter the premises and forcefully eject the tenant from the premises. If you do so, you may be liable for wrongful ejection and damages.
The procedure for recovery of possession is provided by the law and it must be complied with. What the law says is that to recover possession of premises, the landlord must first issue a notice to quit and serve the tenant. The length of notice depends on what was agreed upon in the agreement. But where there is no express agreement to that effect, then, the length of notice depends on what the law says. What the law says is that the length of notice depends on the type of tenancy. If it is a weekly tenancy, a week notice is required; if it is a monthly tenancy, a month notice is required; and if it is a yearly tenancy, it is six months’ notice. After serving the notice and the tenant still remains in occupation of the premises, the owner would then serve a 7-day notice of owner’s intention to recover possession of the premises. If after the 7 days expires the occupier still refuses to deliver up possession, then the owner can apply to court by means of writ or plaint against the occupier.
As one can infer from the procedure above, it is only by court action that the owner of premises can recover possession. Thus, the use of self-help like cutting off tenant’s electricity, removing of roof, and the use of force to throw out the property of the tenant to recover possession from tenant is illegal and unlawful. The proper procedure is to serve the statutory notices and allow the court of law to lawfully eject tenant.
5 Right to Review Rent
Where tenancy is for a long period of time, and the tenant exercises option to renew the tenancy, the landlord has the right to review the rent from time to time, in accordance with the rent at which the premises might be reasonably be expected to be let in the open market by a landlord; or in accordance with the rent at which the premises might, in the opinion of a Registered Estate Valuer, who shall act in respect of the property to be let. To enforce this right, it is advisable that the landlord insert rent review clause in the agreement.
6 Option to Renew
An option to renew is an offer from landlord to tenant stating that at the expiration of the tenancy, the landlord is willing to extend the tenancy as may be agreed upon by both parties. Being an offer to tenant, the tenant must accept it before it can be valid. To make this offer, the landlord may insert the option to renew clause in the agreement.
7 Right of Sale
As owner of property, the landlord has right to dispose of his premises, so far it does not affect the interest of the tenant. However, where the landlord sells the premises, he should endeavour to inform the tenant of the change of ownership.
8 Right to Sue
The landlord has the right to sue the tenant for breach of covenant, recovery of possession, and damages.
Obligations of Landlord
In response to the rights enjoyed by the landlord, the landlord is bound by certain obligations. These obligations include:
1 Obligation to Repair
Unless otherwise stated, the landlord is under obligation to repair structural part of the premises, which include roof, drains, pillars, foundations, staircase, etc. however, the landlord is not under obligation to repair the interior. The tenant is responsible for repair of such interior parts as windows, doors, floor, keys, painting, etc.
2 Obligation to make Premises Fit for Habitation
The landlord is under obligation to make the premises fit for human habitation. A dilapidated house begging for renovation, cannot be said tom be fit for habitation. Premises recently vacated by a tuberculosis patient cannot be said to be fit for habitation.
3 Obligation to Ensure Quite Enjoyment of Premises
The landlord cannot, under any circumstances, enter the premises and cause any disturbance, discomfort, or distraction to the tenant. The landlord is under an obligation to allow the tenant to have quite enjoyment of the premises. Where he fails to do so, the tenant may sue him to recover damages.
4 Option Not t Derogate from Grant
The landlord is under an obligation not to derogate from grant. The landlord must not act in a way that renders the purpose for which the grant was made impossible. In other words, the landlord should not give out with the right hand and later collect what he gives with the left hand.

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