28/01/26
As an Executor, your responsibility is to ensure that the Deceased’s Estate is administered in line with their wishes and the law. If the Estate includes rental property, you may find yourself managing a regulated tenancy; a type of rental agreement governed by stricter legal protections for Tenants. These tenancies, which apply to agreements created before 15 January 1989, can complicate property management, especially if you’re unfamiliar with their rules.
If you’re an Executor managing an Estate that includes a regulated tenancy, it’s essential to understand the unique challenges involved. Here’s what you need to know:
WHAT IS A REGULATED TENANCY?
A regulated tenancy applies to rental agreements created before 15 January 1989 under the Rent Act 1977 and similar laws. These tenancies provide Tenants with strong protections, including:
Rent Control: The Government caps the rent, meaning the Landlord (or the Executor of the Estate) cannot freely raise it to match market rates.
Security of Tenure: Tenants under regulated tenancies have greater rights to remain in the property for the long term, even potentially indefinitely, unless the proper legal procedures are followed for eviction.
Eviction Protection: Evicting Tenants in a regulated tenancy can be complex and time-consuming. Strict legal processes must be followed, making it challenging for an Executor seeking to manage the property or prepare it for sale.
WHY EXECUTORS NEED TO UNDERSTAND REGULATED TENANCIES
Managing a property under a regulated tenancy comes with unique challenges. Here’s why it’s important for Executors to understand the implications:
Financial Management: Regulated tenancies often come with limits on rent increases, meaning the rental income you can collect may not be in line with market rents. This can make it harder to cover maintenance costs or expenses related to managing the property.
Eviction Process: Evicting a Tenant under a regulated tenancy can take longer than in other tenancy arrangements. Executors may be faced with a Tenant who has strong legal protections against eviction, which can delay the process of selling or managing the property.
Property Management: Executors may be limited in their ability to make changes to the property or the tenancy terms. It’s important to understand the legal boundaries of the tenancy to avoid disputes and unnecessary legal complications.
Impact on Estate Value: Properties with regulated tenancies may be harder to sell, as prospective buyers may be deterred by the rent restrictions and eviction protections. Executors need to be aware of how these factors may affect the Estate’s overall value.
THE RISKS OF NOT HANDLING REGULATED TENANCIES PROPERLY
Failing to understand the complexities of regulated tenancies can expose an Estate to several risks:
Financial Strain: Limited ability to raise rent and potential long-term tenancies can impact the Estate’s cash flow, making it more difficult to pay debts or distribute assets.
Legal Complications: Executors must follow strict legal procedures for rent control and evictions. Failing to do so can lead to delays in managing the property, potential fines, or even legal action.
Prolonged Eviction Timelines: The eviction process for Tenants in regulated tenancies can be lengthy, especially if the Tenant refuses to leave. This can cause significant delays in the Estate’s administration, including property sales or transfers.
HOW OUR LITIGATION DEPARTMENT CAN HELP EXECUTORS
At CTT Law, our Litigation Department can provide expert legal support to Executors managing Estates with regulated tenancies. We offer the following services:
Legal Advice on Rent Control: We can advise you on how rent controls affect the property and guide you on how to stay compliant with the law while managing rental income.
Eviction Guidance: If you need to evict a Tenant under a regulated tenancy, we will guide you through the legal process, ensuring all necessary steps are followed to minimise delays and avoid complications.
Dispute Resolution: If disputes arise between Tenants and the Estate, we can assist in resolving the matter, helping to avoid protracted legal battles.
Property Related Legal Support: If the regulated tenancy is affecting the sale of the property or other aspects of the Estate administration, we can help you understand your options and ensure the proper legal steps are taken.
GET THE LEGAL HELP YOU NEED
As an Executor, your role can be challenging, especially when managing properties with regulated tenancies. At CTT Law, we can provide the legal expertise you need to navigate these complexities and ensure the Estate is administered in accordance with the law.
CONTACT US TODAY
If you’re managing an Estate with a regulated tenancy, reach out to our Litigation Department. We’ll provide you with clear and practical legal advice to ensure you handle the property and tenant matters efficiently, helping you move forward with the Estate administration.
