When a tenant requests alterations to a leased property, landlords must address a range of legal, practical, and commercial considerations. Whether dealing with minor improvements or substantial renovations, a clear process can help protect your interests while maintaining a good landlord-tenant relationship.
Reviewing the Tenant’s Proposal and Assessing Consent Requirements
The tenant should provide a comprehensive, single-package request detailing:
- Specification of Works: A detailed description of the proposed alterations, including plans and technical drawings.
- Clarifications: Identification of works requiring the landlord’s consent versus those permissible without it.
- Demised Premises: Confirmation of whether any part of the proposed works falls outside the leased area.
Check the lease terms to determine:
- Whether there is an outright prohibition on alterations.
- If alterations are allowed, whether they require prior written consent.
- Any specific provisions regarding structural or non-structural changes.
Under section 19(2) of the Landlord and Tenant Act 1927, consent for alterations cannot be unreasonably withheld unless explicitly prohibited in the lease.
Protecting the Landlord’s Interests and Responding Effectively
When considering the tenant’s request:
- Protect Your Property Interests: Ensure that any decision to refuse consent is based on legitimate property-related concerns, such as structural integrity, tenant mix, or potential devaluation.
- Avoid Unrelated Objections: Refusals cannot be based on unrelated factors, such as personal disagreements with the tenant.
Although not legally required, it is good practice to provide a written explanation for any refusal. This can support your position if the tenant challenges your decision.
Provide your response in a single, well-structured document that addresses:
- The landlord’s decision to approve or refuse consent.
- Any conditions attached to the approval (e.g., reinstatement obligations, supervision requirements, or additional security).
- Justifications for any refusal, if applicable.
Additional Considerations: Compensation, Guarantors, and Best Practices
If the alterations result in any monetary loss to the landlord (e.g., diminished property value), the tenant may be required to compensate you. The lease terms may outline specific obligations for the tenant in this regard.
For added security, ensure that any guarantor also consents to the proposed alterations. This protects the landlord’s position if the alterations affect the lease terms or future obligations.
The non-binding Alterations Protocol provides useful guidance on managing requests for alterations. While not mandatory, following these recommendations demonstrates fairness and professionalism. Access the protocol here.
Handling Disputes and Seeking Legal Support
If the landlord unreasonably withholds consent, the tenant may have the right to proceed with the works. However, this exposes the tenant to risks, including injunctions and lease forfeiture.
In contentious situations, either party can apply to the court for a declaration on whether consent should be granted. Litigation is a last resort; landlords should aim to resolve disputes through negotiation or alternative dispute resolution wherever possible.
Consult a Property Litigation Solicitor
Managing tenant requests for alterations requires legal knowledge and strategic decision-making. At DTM Legal, our experienced property litigation team can assist landlords with:
- Reviewing and drafting licences for alterations.
- Negotiating disputes.
- Protecting your property interests while fostering productive tenant relationships.
By following this checklist, landlords can manage alteration requests efficiently and effectively, reducing the risk of disputes and ensuring their property’s value is maintained. If you’d like tailored advice or assistance with drafting documents, please get in touch with our team today by calling 01244 354 800 or emailing James Holton at james.holton@dtmlegal.com.
