Does your landlord know you are Working from Home?

Your boss might want you Back in the office… for good — but what does your landlord think?

Shorthold tenancies

With shorthold tenancies, you are more likely to be a tenant with a six-month assured shorthold tenancy agreement. This can be distinguished from a long leaseholder who might “own” a 125-year lease on a flat or a 999-year lease on a house. 

The benefits for employees of working from home (WFH) can come with a set of challenges for landlords of such shorthold tenants.

For Landlords

• Increased wear and tear: more time at home may lead to higher maintenance costs and more frequent repairs.
• Increased utility costs: if utilities are included, your costs will increase with your increased usage.
• Insurance: Your tenant’s standard residential policy might not cover their business activities at home. Ask them to check their small print.

For Tenants

• Reasonable adjustments: You may have agreed to remote working to remove or reduce a disadvantage related to disability. WFH may be your only option for employees.
• Family life: WFH has allowed many employees to benefit from greater time with the family and reduce childcare costs for breakfast and after-school clubs.
• Economic Necessity: Remote work may be a requirement of your job. Losing the capacity to work from home could impact that.

Ask the Expert

Jennifer Rogers is a solicitor with Napthens, specialising in property litigation.

“If the tenancy agreement does not contain an express restriction or prohibition on working from home, then no such clause can be ‘implied’ and there will be no such restriction.”

“Clauses preventing ‘business use’ or ‘conducting a business’ are fairly common. Any restrictive clause should be carefully examined. Restricting ‘business use’ may not prevent WFH. It will depend on the extent. Sitting at a laptop is unlikely to breach a clause restricting ‘business use’ but welcoming clients into your home might. Think about its validity and enforceability. Any unfair clause or term included in a tenancy agreement is not binding on a tenant unless it is an exempt clause.”

“A court will decide this. An ‘ambiguous’ clause is usually interpreted in the tenant’s favour.”

Supporting your employees

As an HR professional:

• Tenancy Agreements: Encourage employees to review their tenancy agreements to understand any clauses that might impact remote work.
• Advocate for your employees: Facilitate conversations between tenants and landlords, exploring compromises such as additional deposits and cost-sharing for utilities.
• Insurance: Ensure employees WFH are aware of the insurance implications and encourage them to discuss coverage with their landlord.

If all else fails, you may need to assist employees in finding alternative workspaces, such as co-working office spaces or cafés.

For more information about this article or any other aspect of people services reimagined, download our App for Apple or Android, and contact your integrated HR, employment law and health & safety team at AfterAthena today.