circumstances for rent reduction

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  • circumstances for rent reduction

    This agreement relates to a large 6 bedroom three storey home where the rent is over £25k per annum, it is not AST.
    Below is a clause from the Tenancy Agreement. The new Tenant wants to insert the part in red.
    I think it is a non runner as it is poorly defined, ie if the tenant themselves cause a fire/flood that makes part of the property uninhabitable they can stop paying rent.
    It raises the question in general of how to deal with rent reduction if, say, a flood occurs where part of a house becomes flood damaged and needs a repair that takes lets say two months.
    Is there any clause I can use to keep this potential tenant happy, they are probably worried about having to pay rent in a home that is not inhabitable, ie a home that they have to move out of. It is all rather subject!

    The landlord’s repairing obligations referred to in clause 3.3 shall not be construed as requiring the landlord to (a) carry out works or repairs for which the tenant is liable by virtue of his duty to use the premises in a tenant-like manner; (b) to rebuild or reinstate the premises in the case of destruction or damage by fire or by tempest, flood or other inevitable accident; or (c) to keep in repair or maintain anything which the tenant is entitled to remove from the premises. However, the tenant shall not be required to continue to pay rent if all or part of the property become(s) unusable as a consequence of the above, such that they can no longer reasonably enjoy the use of the property in whole or in part as envisaged in this agreement



  • #2
    In all assured shorthold tenancy agreements there is a clause which permits the tenant to stop paying rent if the property becomes uninhabitable due to fire or flood. This is the same sort of thing, however I woulld suggest that unless you are really confident that you know what you are doing you shoud engage a specialist solicitor to draft the lease for you.

    Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.


    • #3
      Plus L's insurance might cover for loss of rent due to premises being unlettable (e.g. if damaged or not habitable).
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).


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