a. Tenant to have quiet enjoyment of the property
The purpose of the covenant is twofold:
(i) to protect the tenant against eviction or dispossession from the property
(ii) to protect the tenant in occupation against interference with his normal use and enjoyment of the property. The landlord impliedly covenants with the tenant that the tenant's enjoyment and possession of the property will not be disturbed by any act of the landlord, his agents or servants.
To enjoy quiet enjoyment, the tenant must pay rent punctually and perform and observe his covenants in the tenancy agreement. A landlord does not have to observe this implied covenant if the tenant fails to pay rent or is in breach of other terms of the tenancy in which case he may take action to evict the tenant and claim damages for the tenant's breach.
Generally speaking, if a landlord disconnects the supply of water, electricity or gas to the property whilst the tenant is still in possession, such act will constitute a breach of this implied covenant.
Case
Yeung Wah James v. Alfa Sea Ltd. [1993] 1 HKC 440 – A tenant occupied a third-floor flat in a block owned by the landlord. The landlord failed to persuade the tenant to surrender his tenancy. One day, the tenant, having returned to Hong Kong from overseas, found himself locked out of the premises. Further, the landlord had, in the tenant's absence and without his consent, broken into the flat to carry out renovation work. The High Court held that the landlord was in patent breach of his covenant for quiet enjoyment and awarded $50,000 as general damages and $50,000 as exemplary damages to the tenant.
b. Fitness for habitation
There is an implied covenant on the part of the landlord to ensure that the property is at the beginning of the tenancy reasonably fit for human habitation where the property is let with furniture.
c. Landlord not to derogate from his grant
The landlord impliedly covenants not to directly or indirectly interfere with or affect the purpose for which the property was let to the tenant and his reasonable enjoyment thereof.
Implied covenants of the tenant
a. To pay rent on the due date
Rent is usually payable in advance on a specified date of each month. Unless expressly provided to the contrary, rent is outstanding if not paid before midnight on the due date for payment.
b. To repair and maintain the property's interior
This covers all the internal physical condition of the property and its fixtures, furniture and electrical appliances. This does not, however, cover fair wear and tear, and structural and latent defects.
c. To pay rates
If the landlord has not agreed to pay the rates, the implied obligation is on the tenant to pay the rates since rates are an occupier's tax and the tenant, being an occupier, is therefore liable. However, in practice, there is usually an express agreement between the landlord and the tenant as to who is going to pay the rates.
d. To use the property in a "tenant-like" manner
A tenant has the implied obligation to use property in a reasonable and proper manner and to take care of the property as a reasonable tenant will do in his circumstances.
e. Not to commit waste
i. It is implied under common law that a tenant shall not commit waste. "Waste" consists of any act or omission which causes a lasting alteration to the nature of the property to the prejudice of the landlord or such act as may impair title to the property.
ii. Examples of waste include removal of wainscots (skirting boards) or floors, permitting walls to decay and converting residential premises into commercial or industrial premises and vice versa.
iii. The obligation not to commit waste is an obligation in tort, independent of contract.
iv. The measure of damages is the injury to the landlord, by considering the depreciation in value of the property.
f. To yield up vacant possession of the property upon expiry of the tenancy
Besides yielding up vacant possession of the property, the tenant also impliedly covenants to deliver up the property in a good, clean and tenantable condition (fair wear and tear accepted).
