Commercial

Property problems: When tenant converts office into bedrooms

Q. I own commercial office space that I lease. I recently became aware that the tenant has sublet the premises to a third party and that some of the office space is now being used as bedrooms. After raising this as an issue with the tenant, the tenant claimed that a residential tenancy now existed and that the Residential Tenancies Act 1986 applies to the lease. What are my options?

Monday, April 11th 2005

A. The first issue to determine in this instance is whether the lease is subject to the Residential Tenancies Act (in which case the Tenancy Tribunal has jurisdiction to determine any dispute under the lease).

The Residential Tenancies Act applies to all residential tenancies. It does not apply to commercial premises. Residential premises are defined as any premises used or intended for occupation by any person as a place of residence.

The act provides that where any premises are used for both commercial and residential purposes, the tenancy shall be deemed to be for residential purposes unless it is proved that the premises were let principally for purposes other than residential purposes.

Given the significant protections afforded to tenants under the Residential Tenancies Act, as landlord, you would argue that the premises are not residential premises.

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