The Landlord & Tenant Act 1954 (UK-Only)

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This article guides you on how to properly set terms for a UK commercial or mixed-use property within our system, with an emphasis on the implications of the Landlord & Tenant Act 1954. Understanding the differentiation between terms that are "inside" or "outside" this Act is crucial as it affects how tenancies are handled, especially when they near expiration. We'll look at how this affects rent and service charge invoices as well as reports within our platform.

Determining the Status of a Term in Relation to the Landlord & Tenant Act

When establishing a term for a UK commercial or mixed-use property, deciding whether it falls "inside" or "outside" the Landlord & Tenant Act 1954 is an initial and vital step. Here’s what it means for your tenancy management:


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Terms "Outside" the Landlord & Tenant Act

  • Terms established as outside the Landlord & Tenant Act will not have the option to hold over past the expiry date.
  • Rent and service charge invoices will cease to generate automatically beyond the term's expiry date.


Terms "Inside" the Landlord & Tenant Act with Holding Over

  • For tenancies inside the Landlord & Tenant Act with holding over set, rent and service charge invoices generated after the expiry date will carry the "without prejudice" notice on the invoice PDF.
  • This note helps protect the legal rights of both the landlord and tenant while under negotiation or continuing the tenancy without a formal renewal.

'Without Prejudice' will automatically be included on invoice PDFs produced by Re-Leased. Should you use Xero or QuickBooks Online, you will need to configure your invoice PDFs within those services instead.


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Finding the Landlord & Tenant Act Status on Reports

To verify the status of tenancies in relation to the Landlord & Tenant Act:

  1. Access the Tenancy Schedule report within the Reports section.
  2. Review the report to see which properties are designated as inside or outside the Act.

We trust that this manual has outlined the process of establishing terms for commercial properties in the UK, in accordance with the stipulations set out by the Landlord & Tenant Act. By accurately classifying your terms, you'll guarantee that your billing and reporting are consistent with the legal requirements, thus safeguarding the rights and responsibilities of everyone concerned.

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