Introduction

The past few years has seen an economic boom in Anguilla. Fuelled by the recent major tourism developments, the construction sector is buzzing with activity. Anguillians are seeking to take advantage of the huge influx of non-belongers needed to build, manage and maintain the Temenos, Viceroy and other large projects. As a result, more apartment complexes and houses are being built to target these potential tenants, and to serve as a long term investment.

Rental accommodation in Anguilla is normally a cut above what is found in many neighbouring islands. Nonetheless, the range of available rental property spans the super-luxurious to the basic. However, whether it is a villa or a humble one bedroom apartment, the same laws govern the relationship of landlord and tenant, and the parties can find themselves facing the same issues and disputes. These can include disputes over rate of rent and the termination of the lease.

Some countries have extensive laws for the protection of the rights of tenants and the regulation of their relationship with the landlord. In Anguilla there is relatively little specific legislation of this type, and the relationship between landlord and tenant therefore depends on the general common law to a great extent. A notable and very important exception is the Rent Restriction Act.

Purpose of the Act
The purpose of this Act is clear. It is intended to protect tenants from the whims and fancies of unscrupulous landlords who may be tempted to either increase the rent arbitrarily, or evict the tenant without proper cause or without following the proper procedures. The Act sets up a legal framework designed to safeguard the tenant’s rights and to afford him recourse to an official body in the event that he suffers abuse from his landlord.

The Act provides for the appointment by the Governor of three Rent Commissioners. The duties of the Rent Commissioners include the determination of standard rent for rental properties and the monitoring of arbitrary and unlawful increases in rent. It is not clear whether Rent Commissioners have actually been appointed. If not, this should certainly be done to give the Act the necessary “teeth” with respect to its enforcement.

Limitation on Rent Increases
I would now like to focus on a specific problem which has been brought to my attention by several persons. It involves the practice of some landlords of increasing the rent without regard to the provisions of the Rent Restriction Act which clearly places limitations on rent increases. This is causing much distress to tenants and is leading to legal disputes. It would therefore be useful to shed some light on this aspect of the Act.

The Rent Restriction Act states that it shall not be lawful for a landlord to increase the rent of any premises to which the Act applies beyond the standard rent, to an amount which exceeds the standard rent by more than 15%, unless the increase is sanctioned by the Rent Commissioners. For present purposes, the standard rent can be taken to be the rent which was agreed between the landlord and the tenant at the beginning of the tenancy.

However, the Act does not apply to all rented premises. The Act stipulates that it does not apply to any dwelling house let at a rent which includes payment in respect of board, attendance or use of furniture. In other words, it does not apply to any rented premises where meals or other household services are included, or which are furnished.

Therefore, the tenant of a house which is rented furnished does not have the same protection as the tenant of an unfurnished house. The precise reason for the distinction is not clear; perhaps there is an assumption that persons renting unfurnished houses are less able to cope with large rent increases than those renting furnished houses. This issue brings us to the crux of some of the disputes that have arisen between landlords and tenants: when is a rented house considered to be furnished or unfurnished?

The answer to this question is obviously of crucial importance. If a house is considered to be rented unfurnished, the landlord cannot increase the rent beyond 15% of the agreed rent without the sanction of the Rent Commissioners. If it is deemed to be furnished, there is no such restriction.

The meaning of “unfurnished”
Let us take two different scenarios. If a house is let with beds, sofas, dining table and chairs and a fridge and a stove, it is very clearly “furnished”. However, can the same be said if the house is rented with only the barest of essentials, such as a fridge, a stove and bathroom fixtures?

The Act defines “furniture” as including “fittings, machinery and other articles used in premises not being fixtures”. This definition is not particularly helpful in and of itself. In many cases, such definitions in statutes have been explained and clarified by judges when disputes reach the court. However (while they may exist) I have not been able to locate any cases specifically dealing with the interpretation of the term “furniture” in this context.

A common sense approach therefore has to be taken. The dictionary definition of “furnished” is “equipped with what is needed, especially furniture”. This would seem to imply that a furnished house should be equipped with both furniture and other necessary items, such as appliances, including a fridge, stove, washer and so on.

Where there is a lack of legislation in Anguilla, one can look at the laws of other common law countries to see how they address a particular issue. The Rent Order (Northern Ireland) 1978, Article 5(5) states that a house can only be considered to be furnished where it is let “with all such furniture (other than plate, cutlery, linen and cooking utensils) as is reasonably required having regard to the character of the house, for its occupation as a furnished house”. This lends very strong support to the view that a furnished house is one which is substantially furnished, as opposed to being merely equipped with a few basic items.

Conclusion

Both landlords and tenants should be aware of the limitations on rent increases found in the Rent Restriction Act with respect to unfurnished properties. In my opinion, a furnished house is one which is properly and fully furnished. This term cannot be said to apply to a sparsely furnished house where the tenant still has to move in substantial items of furniture in order to make it habitable. As such, unless a house is fully furnished it will be regarded as being “unfurnished” and will fall under the protection of the Rent Restriction Act.

Note: The matters discussed in this article are for general information only, and should not be applied to any particular situation or set of facts without legal advice.

Alex Richardson is Managing Partner of the law firm Alex Richardson & Associates, P O Box 371, The Babrow Building, The Valley, Anguilla, Tel: 264 498 4224, Fax: 264 498 4220, email: arichardson@anguillanet.com. He is also Managing Director of Paragon Corporate Services Ltd.

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