Landlords must act in accordance with the Tort (Interference with Goods) Act 1977 when dealing with any goods left behind by tenants.
Any landlords that dispose of or sell goods left behind by a tenant without following the correct procedure as laid out by the Tort Act 1977 could find themselves liable for damages.
As a landlord, you would generally expect that when a tenant leaves your property, they would take all their belongings with them. However, from time to time, you’ll find that tenants leave furniture or belongings behind at the property.
Whilst this is frustrating and it can be tempting to bin the items immediately, if it later turned out that the items were of value, your tenant would have grounds to claim damages from you.
Any items that a tenant leaves behind are still their property and according to the law, a set procedure must be followed before a landlord can dispose of them.
Key Takeways
- Duty of Care – When a tenant leaves items behind, landlords become involuntary bailees and are legally required to take reasonable care of the goods, protecting them from loss or damage.
- Serve Notice Before Disposal – Landlords must serve a formal notice under Section 12 of the Act, giving the tenant a reasonable opportunity to collect their belongings before selling or disposing of them.
- Keep Records and Act Reasonably – All actions taken—such as notices issued, goods stored, and disposal or sale—should be documented. Acting fairly and transparently protects landlords from legal claims.
Tort (Interference with Goods) Act 1977: Landlord Duties
If a tenant leaves items behind, the landlord becomes an “involuntary bailee,” meaning they have possession of someone else’s goods without intending to. In this role, landlords must take reasonable care of the items and try to return them to their owner.
First, you should store the tenant’s goods somewhere secure and make reasonable efforts to trace and contact the tenant.
If you do not have the tenant’s new address, you may need to use a tenant tracing service to prove that you have made reasonable efforts to find them.
Next, you should serve the tenant notice to come and collect the items by sending a letter to their current address.
Landlords can send a notice under Section 12 of the Act, which should include:
- Where the goods are being stored.
- A description of the goods.
- The landlord’s contact information.
- A reasonable deadline for the tenant to collect the items.
If the tenant doesn’t respond or collect their belongings in time, the landlord can sell or dispose of the goods. It’s important to keep records of all actions and communications to protect against potential claims.
Any proceeds made from the sale of the goods are the tenant’s property and should be returned to the tenant once deductions have been made for any debts owed by the tenant to the landlord. Debts owed could include rent arrears, the cost of storing the goods, and any selling fees.
Important Legal Cases
Several court cases have clarified how the Act applies:
- Houghland v R R Low (Luxury Coaches) Ltd [1962]: A passenger’s luggage was lost during a coach trip when it was transferred between vehicles. The court decided that the coach company, as a bailee, had a duty to take reasonable care of the passenger’s belongings and was responsible for the loss.
- Campbell v Redstone Mortgages Ltd [2014] EWHC 3081: The High Court rejected a former tenant’s claim for damages after the landlord disposed of her goods. The court found that the landlord had acted reasonably, as the tenant had multiple chances to retrieve her belongings but didn’t do so.
- Da Rocha-Afodu v Mortgage Express Ltd [2014] EWCA Civ 454: In this case, the mortgage company was not held liable for damages after giving the property owners several warnings and opportunities to collect their goods before disposal.
- Walton Family Estates Ltd v GJD Services Ltd [2021] EWHC 88: The court ruled that a property owner, acting as an involuntary bailee, could require former tenants to remove aircraft left on their property and could seek permission to sell or dispose of the aircraft if the tenants didn’t comply.
Adding Terms to Lease Agreements
To avoid disputes, landlords should include specific terms in lease agreements about handling goods left behind. These terms can outline the steps for notification, storage, and disposal of abandoned items, ensuring both parties understand their rights and duties.
Checklist for Landlords
To manage abandoned tenant belongings effectively, landlords should:
- Inspect the Property: After regaining possession, check the premises thoroughly for any left-behind items.
- Document Everything: Make a detailed list of the goods, including photos and descriptions.
- Send a Formal Notice: Issue a notice under Section 12 of the Act, giving the tenant a reasonable time to collect their belongings.
- Store Goods Safely: Keep the items securely to prevent damage or loss.
- Seek Professional Advice if Needed: For valuable or sensitive items, consult legal professionals for guidance.
- Dispose or Sell if Unclaimed: If the tenant doesn’t respond within the specified time, proceed with selling or disposing of the goods, keeping records of the process and any proceeds.
- Keep Sale Proceeds: Hold any proceeds from the sale for a reasonable period, as they may need to be returned to the tenant upon request.
Frequently Asked Questions (FAQs)
What is a “reasonable period” for a tenant to collect their belongings?
A: The Act doesn’t specify an exact timeframe, but at least 14 days is commonly considered reasonable. This can vary depending on the situation and the value of the goods.
Can a landlord immediately dispose of perishable goods left by a tenant?
A: Yes, perishable items that may spoil or pose health risks can be disposed of promptly. It’s advisable to document the disposal process to avoid potential disputes.
Is a landlord responsible for storing a tenant’s abandoned goods indefinitely?
A: No, landlords are required to store the goods for the duration specified in the notice. If the tenant doesn’t collect them within this period, the landlord may proceed with disposal or sale.
Can storage costs be deducted from the sale proceeds of unclaimed goods?
A: Yes, landlords can deduct reasonable costs associated with storage and sale from the proceeds. Any remaining balance should be held for the tenant for a reasonable period.
What if the tenant claims their goods after they have been disposed of?
A: If the landlord followed the proper procedures under the Act, including giving notice and allowing a reasonable time for collection, they are generally protected from liability. However, it’s important to keep detailed records of all actions taken in case of any disputes.
The Clearway commercial financial recovery team is here to help. We can advise on your legal responsibilities under the Torts (Interference with Goods) Act 1977 and guide you through the correct process for serving notices, handling goods, and avoiding liability.
