Introduction to Landlord and Tenant Law (19:I): Difference between revisions

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=== 3. Net Lease Concept ===
=== 3. Net Lease Concept ===


Most  commercial  leases  operate  on  the  net  lease  concept.  This  means  that  fixed  rent (dollars-per-square  foot  or  dollars-per-month)  is  to  be  net  to  the  landlord,  with  the  tenant paying  for  all  costs  in  operating  the  leased  premises  as  additional  rent.  Thus,  substantial payments  can  be  made  as “additional  rent”  to  cover  the  tenant’ s portion  of  the  landlord’ s expenses. This concept is also known as “triple net”. 4.Taxes Unless the lease provides otherwise, the landlord is liable for all realty taxes. If the lease calls for the tenant to pay the taxes, the landlord may sue the tenant if taxes are in arrears. 5.Seizure of Personal Property for Non-Payment of Rent A commercial landlord may distrain (seize personal property for non-payment of rent), while a residential landlord may not (regardless of any rental arrears). The personal property being distrained  must  be located in  the  rented  premises  and  the landlord  must  give  notice  before seizing  the  property.  The  tenant  will  suffer  a  penalty  if  he  or  she  removes  the  goods  to prevent  distrainment.  Distrainment  keeps  the  tenancy alive.  Usually  the  month  after distrainment  the  tenant  will  be  evicted  if  there  remain  rent  arrears  or  if  new  rent  arrears accrue. D.Occupier’s Liability NOTE:               For  specific  details,  see  the Occupier’s  Liability  Act, RSBC  1996,  c  337  [OLA].  The OLA, s 6 speaks to sub-tenancies. 1.Landlord’s Liability for Injuries in Demised Premises The landlord has no statutory or common law duty to maintain the demised premises unless provided  for  in  the  lease  agreement.  Contractual  liability  of  the  landlord  is  to  the  tenant alone,  not  to  his  or  her  family,  guests,  or  customers.  Moreover,  as  the  landlord  is  not  an occupier, he or she is not liable in tort. However, where the landlord is under a duty to maintain the premises, s 6 of the OLA puts the landlord in the same position as the occupier of the premises. Where the landlord fails to maintain  the  premises  and  an  injury  results,  the landlord will be  held  liable.  The  landlord is considered an occupier with regards to common areas. His or her duties are set out in s 3 of the OLA. 2.Tenant’s Liability for Injuries in Demised Premises The  tenant  is  considered  an  occupier,  and  inherits  all duties  that  go  along  with  that designation.  A  tenant  should  take  reasonable  care  to  inspect,  notify  the  landlord,  and  give warning  to  an  invitee  of  any  unusual  danger  in  the  common  areas.  Where  an  occupier  can foresee  that  a  trespasser  may enter  the  property,  there is  a  duty  to  treat  the  trespasser  with common humanity.
Most  commercial  leases  operate  on  the  net  lease  concept.  This  means  that  fixed  rent (dollars-per-square  foot  or  dollars-per-month)  is  to  be  net  to  the  landlord,  with  the  tenant paying  for  all  costs  in  operating  the  leased  premises  as  additional  rent.  Thus,  substantial payments  can  be  made  as “additional  rent”  to  cover  the  tenant’s portion  of  the  landlord’s expenses. This concept is also known as “triple net”.  
 
=== 4. Taxes ===
 
Unless the lease provides otherwise, the landlord is liable for all realty taxes. If the lease calls for the tenant to pay the taxes, the landlord may sue the tenant if taxes are in arrears.  
 
=== 5. Seizure of Personal Property for Non-Payment of Rent ===
 
A commercial landlord may distrain (seize personal property for non-payment of rent), while a residential landlord may not (regardless of any rental arrears). The personal property being distrained  must  be located in  the  rented  premises  and  the landlord  must  give  notice  before seizing  the  property.  The  tenant  will  suffer  a  penalty  if  he  or  she  removes  the  goods  to prevent  distrainment.  Distrainment  keeps  the  tenancy alive.  Usually  the  month  after distrainment  the  tenant  will  be  evicted  if  there  remain  rent  arrears  or  if  new  rent  arrears accrue.  
 
== D. Occupier’s Liability ==
 
'''NOTE:''' For  specific  details,  see  the ''Occupier’s  Liability  Act'', RSBC  1996,  c  337  [OLA].  The OLA, s 6 speaks to sub-tenancies.  
 
=== 1. Landlord’s Liability for Injuries in Demised Premises ===
 
The landlord has no statutory or common law duty to maintain the demised premises unless provided  for  in  the  lease  agreement.  Contractual  liability  of  the  landlord  is  to  the  tenant alone,  not  to  his  or  her  family,  guests,  or  customers.  Moreover,  as  the  landlord  is  not  an occupier, he or she is not liable in tort. However, where the landlord is under a duty to maintain the premises, s 6 of the OLA puts the landlord in the same position as the occupier of the premises. Where the landlord fails to maintain  the  premises  and  an  injury  results,  the landlord will be  held  liable.  The  landlord is considered an occupier with regards to common areas. His or her duties are set out in s 3 of the OLA. 2.Tenant’s Liability for Injuries in Demised Premises The  tenant  is  considered  an  occupier,  and  inherits  all duties  that  go  along  with  that designation.  A  tenant  should  take  reasonable  care  to  inspect,  notify  the  landlord,  and  give warning  to  an  invitee  of  any  unusual  danger  in  the  common  areas.  Where  an  occupier  can foresee  that  a  trespasser  may enter  the  property,  there is  a  duty  to  treat  the  trespasser  with common humanity.

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