Ain’t Nothin’ Goin’ On But The Rent? : or, How do you make a loss of rent claim work? Part 2

Part two of this paper continues to analyse a landlord’s ability to include in a claim for damages at the end of a lease a sum representing the loss of the rent the landlord would otherwise have been able to receive from a new tenant, had the outgoing tenant not delivered up the premises out of the covenanted-for state and condition. The paper considers and contrasts the conceptual basis for such claims and discussing the conceptual issues arising from the special rules in respect of claims for damages for disrepair properly so-called, which flow from the case of Joyner v. Weeks and the Landlord and Tenant Act 1927, Section 18. The paper proposes a solution for the difficulties these special rules cause in respect of the general law of causation in damages claims. The paper examines both the legal and the valuation challenges in mounting such claims. It gives particular attention to the difficult issues arising with: the length of the period necessary to market the premises, even if they were in repair; the impact of a landlord being unwilling or unable to undertake repair works until the market has improved; and the position of a landlord who wishes to occupy the premises himself. The paper concludes with a practical, step-by-step procedure for the calculation of such claims (which is also conveniently summarised in a flowchart). This is intended to guide practitioners through the process of making such a claim as simply as possible. Part one of this paper was published in Journal of Building Survey, Appraisal & Valuation Volume 7 Number 4.