Tenants typically occupy their rented homes without issues or cause for concern. However, what happens when there is a fire at a rented property? What can the tenant do, and what are the landlord’s obligations? Property Litigation specialist Will Bartley discusses this below.
There has been a fire at my rented property – what happens now?
Naturally the first step is to ensure that everyone is safe and that the fire brigade and police have been notified. Once the property has been thoroughly checked and rendered safe, the landlord and tenant will need to communicate as to what happens next. Both parties should also inform their insurance companies in respect of the remedial works and contents cover.
The majority of rented properties will be covered by an Assured Shorthold Tenancy Agreement. Within AST’s, there are frequently clauses addressing this specific issue.
In the event that extensive remedial works will be required to fix the fire and structural damage at the property, it may be uninhabitable for a number of months. Therefore, the parties may wish to draw the terms of the AST to an immediate end. If this is the case, we strongly recommend entering into a deed of surrender, with both parties agreeing upon the terms of the surrender and the tenant handing back the keys upon signing.
What if the tenant does not want to surrender the tenancy?
Quite often the tenant would have been living at the property without issue before the fire, and wants to remain in situ once the remedial works have been undertaken. If the tenant therefore does not agree to a surrender, the Landlord will need to check to see if there is a termination clause in the AST in the event of a catastrophic incident, such as fire or flood. In the absence of such a clause, the Landlord may wish to serve a S21 eviction Notice, providing 2-months’ notice to vacate before commencing Possession Proceedings at Court (if the AST is outside of the fixed term by the expiry of the S21 Notice period).
Can a landlord increase the rent after the remedial works are completed?
Yes, the landlord can increase the rent to bring the rent level with market rent for the Property condition. Given that extensive remedial works may have taken place, the property may be able to attract a higher level of rental income after the works have taken place because it is more attractive to potential tenants. Existing tenants of rental properties that undergo such remedial works should expect their rent to increase if the property is substantially improved. However, this can only occur outside a fixed period of the AST, and not more than once every 12 months. If a tenant wishes to challenge any increase, they can refer the matter to the Tribunal.
Does the tenant still have to pay rent?
The parties will need to check the terms of AST. However, if the AST is silent on the matter, the parties can agree what happens about rent. If the property is uninhabitable and the tenant is going to need to pay for alternative living accommodation for a number of months, it is not reasonable to expect them to also pay rent. The landlord should check with their insurance to see if rental income is protected in the event of fire etc.
Does a landlord have to rehouse the tenant?
Again, please check terms of AST, but often it will not be the landlord’s responsibility to rehouse their tenant in the event of a fire (or similar incident), especially if not charging rent during the period of remedial works. The landlord and tenant should therefore work together to agree on when the tenant might reasonably move back in, whether they want to move back in, how long the works might take, what the likely rent will be upon re-entry, and whether either party in the event of a long delay wants to sever or end the tenancy.
Specialist Landlord and Tenant advice
Here at Porter Dodson we have a dedicated Property Disputes team who specialise in this area of law. If you are a landlord or tenant who requires advice on this matter, please feel free to get in touch with our Property Litigation Department below.