One clause often seen in lease agreements for residential and commercial properties is a sweeper clause, also called a sweeping up or catch-all clause.
If it is drafted widely enough, a sweeper clause can help landlords recover maintenance and repair costs, (not covered elsewhere in the document) including service charges, from tenants.
In this brief article, we will explain the purpose of a sweeper clause and when landlords can and cannot use it to recoup costs from a tenant.
The definition of a sweeper clause
Including a sweeper clause in a lease allows landlords to recoup property repair and maintenance costs not explicitly mentioned in the lease agreement between the landlord and tenant. The clause aims to protect the landlord against unexpected expenses or possible expenses not specifically mentioned in the lease.
Purpose of sweeper clauses
Sweeper clauses are designed to help landlords recover unexpected property maintenance or repair costs. They are also used for service charges for communal areas in a property or its grounds. With a sufficiently wide sweeper clause, landlords can recover money from tenants to cover repairs and maintenance, and avoid having to foot the entire bill themselves.
Requirements for sweeper clauses
The Landlord and Tenant Act 1985 outlines when service charges, including those covered by sweeper clauses, can be recovered from tenants. The Upper Tribunal offers further guidance and highlights the need for transparency and reasonableness when using sweeper clauses in leases. It gives further guidance s on when and where they are appropriate and enforceable.
In a July 2024 case, the Upper Tribunal ruled that the landlord of the London Borough of Tower Hamlets could not rely on a sweeper clause to recover the costs for repairing structural defects even though the landlord was obliged to maintain the building.
Benefits and risks of sweeper clauses
While there are undoubted benefits to landlords, including sweeper clauses in lease agreements ensures they are not unfairly burdened with unforeseen expenses for significant property repairs. On the other side, tenants must make sure they properly understand these clauses and their potential impact when it comes to charges they might have to pay. Sweeper clauses are by their very nature, general and non-specific, and open to interpretation, meaning that landlords can try to recover unjustified costs, so it is wise for tenants to seek legal advice so they are clear on their obligations before they sign an agreement.
If a sweeper clause is considered too broad, it would not be enforceable and would not benefit the landlord or tenant. For example, expecting a tenant to contribute to all costs and expenses may be considered unreasonable, as shown below.
"The tenant agrees to pay a share of all costs and expenses incurred by the landlord for the maintenance, repair, and management of the property, including but not limited to service charges, property insurance, and any other reasonable costs necessary for the upkeep of the property."
The drafting of lease agreements
To avoid disputes sweeper clauses should be drafted clearly and precisely to avoid misinterpretation and ensure they are enforceable to avoid potential issued between landlords and tenants. Before adding clauses to a lease, landlords should assess the likely future costs of maintaining and repairing the property. It is also vital that the lease agreement adheres to guidelines on cost recovery and maintains a reasonable and transparent approach.
Alternatives to sweeper clauses
A lease can include specific provisions for service charges, periodic property reviews, and anticipated maintenance and repair costs, which may be more appropriate than a sweeper clause.
A sweeper clause can sometimes be the right approach to protecting landlords from the cost burden of significant property maintenance repairs. However, it is not always the most appropriate option.
We advise landlords to work with a specialist property lawyer to ensure their lease agreements protect their interests while remaining fair, transparent and enforceable.
