BERMUDA Law and Practice Contributed by: E Scott Swainson, Katrina Dickson and Erik Gotfredsen, Wakefield Quin Limited
Special provisions apply to rent controlled prop - erties – ie, residential units below a particular ARV. The threshold is currently USD22,800 and so applies to lower value housing – eg, studio/ one-bed units and very small cottages. Impact of the Pandemic The Bermuda government recommended a rent deferral scheme during the COVID-19 pandemic, whereby tenants were allowed to defer rent for several months and then make up the shortfall after businesses were allowed to reopen. This scheme was not mandatory but many landlords allowed rent deferrals and reductions, to protect longstanding tenants. The government did not provide rental support or assistance for land - lords. 6.16 Effect of the Tenant’s Insolvency In the event of tenant insolvency or a receiving order in bankruptcy, most leases allow for ter - mination of the lease. The official receiver may also disclaim an onerous lease. 6.17 Right to Occupy After Termination Most leases expire by effluxion of time at the end of the fixed term. There are different rules for periodic tenancies, especially of farming land. Security of Tenure There is no statutory security of tenure for com - mercial tenants, and hence these leases often include a contractual right to renew. The same is true of the majority of residential leases. Residential tenants of rent controlled tenancies (see 6.14 Specific Regulations ) enjoy security of tenure after expiry, and the landlord needs a statutory ground to determine. Grounds include own occupation, renovation and tenant breach - or Expiry of a Lease Leases End on Expiry
es during the term. Some rent controlled ten - ancies are excluded from the security of tenure provisions (eg, a unit in the landlord’s own home and service tenancies). Enfranchisement There is no statutory right to enfranchise (ie, buy the freeholder’s interest). An option to purchase may be negotiated in the lease. Holding Over Where a tenant continues to occupy the prem - ises with landlord consent or acquiescence after the termination of the lease, the tenant will be deemed to be a tenant holding over on a peri - odic tenancy (generally from month to month, where rent is paid monthly) and otherwise on the same conditions as the expired lease. Where a tenant continues to occupy without landlord consent after expiry, the landlord may recover “mesne profits” equating to loss of income and losses arising from the failure to yield up in breach of the lease. Self Help Where a tenant refused to vacate, a court order for possession is required in all cases, both com - mercial and residential; the landlord cannot sim - ply change the locks. 6.18 Right to Assign a Leasehold Interest Assignment Typically, leases may only be assigned with the express consent of the landlord. If there is an absolute prohibition on dealings, the landlord may withhold consent without rea - son. If there is a qualified prohibition, the land - lord may withhold consent for cause.
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