Helping landlords recoup their losses – loss of rent during repairs

By Nichola Turpin, Debt Recover Solicitor at Woodstock Legal Services

If following the end of a tenancy, a tenant has caused damage to the property, it is highly likely that the property will be kept off the market for a period of time needed to undertake necessary repairs before it can be rented to new tenants.

During this period, landlords are not only losing potential rent, but they are also liable for additional charges like council tax and utilities. It is perfectly logical to suggest that as the former tenant that has caused this damage, they should also be liable for the lost rent and associated costs.

The issue

We are finding that over time, Judges are becoming more and more sympathetic to the economic struggles the country is facing, more so now in light of the sharp increase in the cost of living. As a result, they are scrutinising every cost claimed in very close detail – even in cases where these are not actively challenged.

As a result of the COVID-19 pandemic, the country has been through a number of lockdowns resulting in significant delays in repairs being undertaken and difficulties securing tradespeople, making damaged property un-rentable for longer than ever before.

Landlords can normally satisfy the Court of the actual cost of the repairs by way of invoices/receipts etc, but one claim that regularly fails is claims for lost rent and utilities for the period that the repairs were being undertaken.

What can landlords and agents do?

At this point, in order to claim the lost rent, it is simply not enough to just show the Court that the property was un-rentable during the period of repairs. Even very modest claims are often rejected by the Courts.

A claim that is very well evidenced will have a much higher chance of success and managing and lettings agents in particular can really support their landlords in these types of claims.  

It is useful for a landlord to provide a statement to the Court detailing the efforts that they have gone to, to ensure that the repairs are done in a timely manner, along with detailed explanations for any period of delay.

Furthermore, it is important for agents where possible to assist by providing details of the rental history of the property in question and similar properties showing the Court the average time that this property was likely to have been on the market in any event.

They should also provide full details of what has been done to advertise the property for rental again and details of the start of the new tenancy.

If all this information can be provided, then a Judge is more likely to be convinced to make an award for the period that the property was empty – less the amount of time it would have been empty in-between rentals in any event.