Although I joined in order to have help with regard to my own property company, this question relates to my son who is looking to take out a student let from a property management company in Loughborough.
My son has been presented with a lengthy contract and there are two clauses which particularly worry me.
8.3 Insurance
8.3.1
Not to do anything which might cause the landlords policy of insurance on the premises from the fixtures and fittings, to become void or avoidable or causes the rate of premium on such policy to be increased. The tenant will repeat the landlord any sums from time to time paid by way of increased premium and all reasonable expenses incurred by the landlord in or about any renewal of such policy render necessary by breach of this provision. The tenants belongings within the premises are his and are not covered by any insurance policy maintained by the landlord.
I asked the following
This seems to suggest that if there is an increase in premium, for any unspecified reason, the landlord will be able to revert to these tenants for an increase in insurance premiums for all future tenancies. Given how much insurance premiums are increasing with inflation I cannot see how this can be enforced. Insurance is by its very nature something which specifically protects the insured, I cannot see how we can be held responsible or accountable of insurance premium increases. I would've thought that this risk has been adequately compensated within the rents premium.
I got the following response
Maintaining the landlords insurance policy
The tenants are obligated not to engage in any activities or actions that could result in the landlord's insurance policy on the premises or fixtures and fittings becoming void or voidable.
This includes avoiding actions that may cause the insurance company to increase the premium rates on these policies.
Financial responsibility
In the event that the tenant's actions lead to an increased premium on the landlord's insurance policy, the tenant is responsible for repaying the landlord for any additional costs incurred.
This repayment encompasses not only the increased premium itself but also any reasonable expenses the landlord may incur when renewing or adjusting the insurance policy as a result of the tenant's actions.
My question is whether or not this is legal or enforceable?
8.18 costs and charges
8.18.1 To protect the landlord from loss arising from any claim as a consequence of any breach by the tenant of any covenant contained in this agreement.
8.18.2 To pay the landlords reasonable legal costs and expenses properly incurred in enforcing this agreement or any part hereof.
I asked similar questions about why I would want to sign something so open-ended when there are adequate insurance (such as Rentguard) which removes this open-ended agreement
I got the following response
By including this clause, the landlord aims to mitigate the financial risks associated with potential breaches of the lease agreement by shifting the responsibility for covering certain costs onto the tenant.
The clause doesn't specify the exact costs and charges but indicates that they may include expenses related to legal actions, disputes, or damages resulting from the tenant's failure to fulfil their obligations as outlined in the lease agreement.
In practical terms, if the tenant breaches any covenant within the lease agreement, and this breach leads to a legal claim or financial loss for the landlord, the tenant may be required to cover the associated costs and charges.
The question is whether or not there is any limit to this liability, I would presume that is de facto guarantor the landlord is looking to meet to make good any costs associated with any legal process, however speculative.
I would be very grateful as to what your opinion is on this matter.
