When tenancy passes from mother to daughter

Many years ago an apartment was leased to a woman who lived in it with her daughter. This woman, recently passed away and the daughter (whose identity card is on this address) has now approached the owner requesting him to start recognising her as the new tenant.

Is the owner obliged to recognise the new tenant and if so, is he entitled to increase the rent of the leased premises upon its renewal?

It seems that here we are dealing with a lease entered into before the 1995 amendments and thus the applicable law with respect to the renewal of the lease in question would be the Reletting of Urban Property (Regulation) Ordinance.

In accordance with the interpretation of terms and expressions under section 2 of the Ordinance, the term 'tenant' includes, where the tenant leaves no widow or widower, members of the tenant's family who were residing with him or her at the time of his or her death.

From the above provision, it is clear that the owner is obliged to recognise the original tenant's daughter as the new tenant.

With regard to the increase in rent, the law provides that it shall not be lawful for the lessor of any premises to increase the rent at the expiration of the period of tenancy without the permission of the Rent Regulation Board.

If the rent due is less than Lm40 per annum, the lessor who wishes to increase the rent of the lease shall apply to the Board at least one month before the expiration of the lease and in default, the lease shall be deemed to be renewed at the same rent.

If, on the other hand, the rent exceeds Lm40 a year, within a month, the owner is to give notice to the tenant, by means of a judicial letter, of his intention to increase the rent and if the tenant wishes to contest such proposed increase, he or she must apply before the board for the rejection of the increase. In default of such an application by the tenant, it shall be presumed that the tenant would have accepted the increase suggested by the owner.

If the owner fails to bring an action before the board within the prescribed period, the lease shall be deemed to be renewed at the same rent and on the former conditions for a period corresponding to a term of rent.

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