Is an EICR required as it isn’t for a commercial tenant?

by Readers Question

14:09 PM, 11th August 2020
About 2 months ago

Is an EICR required as it isn’t for a commercial tenant?

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Is an EICR required as it isn’t for a commercial tenant?

The situation is we have a shop unit we are letting with a self-contained upper part. This shop is one of four in a parade all owned by the same Landlord.

Some tenants choose to sublet the upper parts, some occupy themselves and some use it for storage.

I wondered if The Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020 apply to this type of letting.  The Landlord is letting a commercial building on an FRI lease and therefore is not the immediate Landlord of the residential part.

I believe the tenant becomes the Landlord of the upper parts and has to comply with the regulation whilst the Landlord does not.

I am looking for the answer whether or not an EICR would be required as it isn’t a requirement for a commercial tenant.

Many thanks

Daniel


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Comments

Ron H-W

11:18 AM, 12th August 2020
About 2 months ago

ASSUMING that your letting agreement allows it or you have your landlord's permission:
(1) Are you going to rent out the whole unit to somebody? Presumably therefore that would be a commercial tenant of yours. No EICR.
(1) Are you going to rent out the flat itself (as a dwelling) separately to somebody? Then you would be responsible for sorting out an EICR. Note that in such a case you'd also be responsible for a separate EPC for the flat, if it doesn't already have its own EPC (as opposed to "as part of the entire unit").
I hope this helps.

Andrew

11:35 AM, 12th August 2020
About 2 months ago

Great question and not going to be a clear cut answer without more details

The residential flat will need an EICR as of 1st July - see https://www.property118.com/myth-busting-electrical-safety-installations-act-2020/ for details on this

Who is responsible is down to the terms of the lease agreement

If you have drawn up an FRI or IRI lease for the whole building then it is the responsibility of the commercial tenant who has sub let the space.

If the lease excludes the residential space then you will be responsible for the cost.

The answer is in reading the lease as other clauses within it will make clear who is responsible

graham.bowcock@oakwoodvaluations.co.uk

11:36 AM, 12th August 2020
About 2 months ago

Ron's right. If you're going to be responsible for the residential letting, then you're responsible for the compliance, irrespective of what your commercial lease says - you can't pass the buck upwards.

As you're on an FRI commercial lease, your landlord has limited obligations to you.


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