Landlords Beware

In a recent case a TESTING! tenant succeeded in its claim that service charge was not due as the landlord’s written demand had not included the landlord’s name. Nicola Crookes-West, Partner in Glanvilles Business & Commercial Services department explains.

It is clear from Landlord and Tenant Act 1987, s 47  that a written demand for payment (including for service charge) from the tenant of a dwelling must contain the name and address of the landlord. If it does not, the service charge is not payable until the information has been given.

In a previous decision, the tribunal had decided giving the address of the managing agents was insufficient. The legislation did not require the tenant to suffer prejudice for there to be a breach. The provision of the name and address of the landlord was obligatory. Its purpose was not simply to provide the tenant with an address through which he could communicate with the landlord, it was to enable the tenant to identify the landlord. The demand would have to be re-served and, if necessary, further recovery proceedings issued.

Landlords should ensure their service charge demands comply with the legislative requirements. The tribunal made it clear that, while the failure to name the landlord on the demand was a technical error which did not prejudice the tenant, it was an absolute requirement and as the tenant had raised the issue, the service charge was not payable until a valid demand was served.

While this is an error that can be corrected by serving a further demand, this will only cause the landlord delay and possible further costs where recovery proceedings, based on the invalid notice, have already commenced that the landlord would not be able to recover from the tenant.

For more information and professional advice please contact us. You can contact Nicola directly on 01329 282841 or n.crokkes-west@glanvilles.co.uk