BERMUDA Law and Practice Contributed by: E Scott Swainson, Katrina Dickson and Erik Gotfredsen, Wakefield Quin Limited
6.10 Payment of Utilities and Telecommunications
Suspension of Rent Most Bermuda leases include a suspension of rent if premises are rendered incapable of use due to an insured loss; see 6.4 Typical Terms of a Lease . 6.13 Restrictions on the Use of Real Estate It is usual for landlords to restrict use of the demised premises to “permitted use” . Use must also comply with the applicable zoning. The landlord does not warrant that the permitted use is lawful – responsibility to verify this falls on the tenant at common law. 6.14 Tenant’s Ability to Alter and Improve Real Estate Leases typically prohibit material alterations, additions and improvements to the demised premises without the landlord’s previous written consent. It is usual to secure approval to fit out and for simple changes that do not impact the structure at signing. There are generally absolute prohibitions on structural alterations. In the majority of cases, landlord and tenant rules and regulations apply equally to all categories of real estate, whether residential, industrial, office, retail or hotel, and the parties to a lease are able to agree its terms at their discretion. Short-Term Residential Lets There are limited exceptions for short-term resi - dential leases, where the landlord must maintain essential cooking and plumbing services and cannot transfer that liability to the tenant. 6.15 Specific Regulations Limitations on Agreeing Terms
Tenants are almost always responsible for utili - ties consumed. Telecommunications services are provided directly from suppliers. Utilities such as electricity and water will typically be pro - vided to the landlord in a multi-occupied building and recouped via service fees, unless separately metered. 6.11 Payment of Property Taxes Landlords typically pay property taxes in resi - dential leases. Commercial property taxes (land tax and corporation taxes) are often borne by the tenant (particularly for high-value rentals) or shared equally between landlord and tenant, but this is a matter for negotiation. 6.12 Insurance Issues Who Insures? The landlord is almost always responsible for insuring the building and common parts, with the tenant insuring their own contents. The cost of the landlord’s insurance is frequently passed back to the tenants as part of the service charge. Insured Risks Insured risks typically include fire, windstorm, flood and civil commotion. Landslip, heave and subsidence are typically not covered, absent an addendum and additional premium. Deductibles Most policies have a deductible for windstorm/
hurricane damage. Occupiers’ Liability
Most building insurance policies will include owner and occupier liability coverage as stand - ard but at a relatively low level, which can be increased on request.
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