Bermuda – Lease Agreements

What is the typical lease term for renting property in Bermuda?

Lease agreements lasting for three years or less are covered by the Landlord and Tenant Act 1974. In practice, the most common arrangement in the residential market is a one-year fixed-term tenancy, which gives both landlord and tenant a degree of certainty and security. Annual leases are the standard starting point when negotiating with a landlord or letting agent.

If there is no written agreement, or an expired agreement, and rent is paid monthly, the law implies a month-to-month tenancy. A month-to-month tenancy continues until either the landlord or tenant gives at least one clear month’s written notice to the other, and notice should expire on the day the rent was otherwise due. This type of rolling arrangement is less common for longer-term expat renters but can offer flexibility when first arriving on the island.

For a yearly rental agreement, a six-month notice period is required to terminate, and yearly rental agreements cannot be cancelled during the first year. For a monthly rental, a month’s notice is required. This is broadly similar to longer notice periods required in many European rental markets, so it is important to factor this into relocation planning, particularly if your work situation in Bermuda may change.

The rental period is important because a landlord and a tenant are contractually bound to each other for that time. Only in very limited circumstances, if any, can a party terminate early. Unlawfully attempting to end a rental period early can be expensive. Always take legal advice before signing if you have any concerns about the length of commitment involved.

What is the difference between furnished and unfurnished rental properties in Bermuda?

Both furnished and unfurnished rentals are available in Bermuda, with furnished options being more popular among expats. The distinction matters not just in terms of what is included in the property, but also in terms of rental cost, the type of tenancy attracted, and the practical logistics of moving in.

Furnished apartments typically include essential furniture, kitchen appliances, and sometimes even linens and kitchenware. Most properties come with major appliances such as a fridge/freezer, oven, washer and dryer, with a tenant typically responsible for maintenance and repairs. Furnished rentals are particularly suited to those arriving on shorter-term work assignments or those who prefer a move-in-ready home without the cost and complexity of shipping furniture to the island.

Unfurnished rentals usually come with basic kitchen appliances like a refrigerator and stove, but little else. Those planning a longer stay — and who either already own furniture or prefer to purchase their own — will often find unfurnished properties more economical over time, since unfurnished rents tend to be lower than furnished equivalents. They also offer more scope to personalise a home to your own taste.

Regardless of which type of property you choose, it is essential to obtain a written inventory of everything included before signing any agreement. What counts as “furnished” can vary significantly from one landlord to another, and having a clear record of what is present at the start of the tenancy protects both parties in any dispute at the end of the lease.

Utilities are not typically included in Bermuda rentals. Tenants are usually responsible for setting up and paying for their own electricity, water, internet, and other utilities, and these services can be relatively expensive compared to other countries. This applies equally to furnished and unfurnished properties, so always ask the landlord for an estimate of monthly utility costs before committing.

What are the standard clauses in a Bermuda lease agreement?

Tenancy agreements, also known as leases, can be in writing or, if for less than three years, can also be agreed orally. However, oral agreements can be unwise, as there is no written record of terms and conditions. A well-drafted written lease will include a number of core clauses that any tenant should review carefully before signing.

Rent must be paid monthly in advance under the Landlord and Tenant Act 1974, unless the tenancy agreement says otherwise. Tenants do not typically pay any outgoings such as land tax or for grounds maintenance. The lease should state the agreed rent amount clearly, along with the payment date and the accepted method of payment.

The security deposit is usually paid before the rental period starts. A wise landlord will prefer not to provide a key to a tenant until after receipt of the security deposit and the first month’s rent. Typically, tenancy agreements permit deposit deductions for non-payment of rent, righting tenant wrongs, eviction and legal costs. The Rent Control Act mandates that security deposits must not exceed two weeks’ worth of rent or $100, whichever is bigger, for rent-controlled units.

Oral agreements for less than three years have certain implied terms such as monthly rent in advance, tenant responsibility for utility payments and for running repairs to the interior — and with a landlord right of entry on 24 hours’ notice. Written leases will usually make these obligations explicit, spelling out the respective responsibilities of both parties in full.

Landlord responsibilities include repairs to the exterior, main structure and tanks. A landlord should also keep services in working order. A standard lease will set out who is responsible for insuring the property and its contents, and what procedure should be followed in the event of damage. Standard leases will also address subletting, use of the property, and the procedure for notice of termination.

What additional clauses may be included in a Bermuda lease?

There are many other terms and conditions in a tenancy agreement, many of which are typical while some are unique to the property, or to the parties. Beyond the standard framework, a number of optional but commonly encountered clauses can appear in Bermuda leases, and their presence or absence is a matter of negotiation between landlord and tenant.

If a tenant is in Bermuda under a work permit, it is usual to include a termination or break clause, to allow a tenancy to end on permit revocation or non-renewal. This is a particularly important clause for expats, since a change in immigration status — such as a work permit not being renewed — could otherwise leave a tenant financially liable for the remainder of a fixed-term lease. Always check whether this clause is included, and if not, negotiate to have it added.

Pet clauses are another optional addition. Where a tenant wishes to keep pets, the landlord’s permission is usually required, and the agreement may include specific conditions around this — such as restrictions on pet types, a requirement for professional cleaning at the end of the tenancy, or an increased deposit. Similarly, clauses relating to garden maintenance responsibilities, the use of communal areas, parking, and air conditioning unit servicing may or may not appear depending on the property.

Rent review clauses are a further addition that may or may not appear in a lease. All homes and apartments with an annual rental value (ARV) of less than BM$24,600 are subject to rent control. Rent increases must be agreed upon by the landlord and tenant, and in cases where the tenant refuses to agree, the landlord must ask for approval from the Rent Commissioner. For properties above this threshold, rent review terms are entirely at the landlord’s and tenant’s discretion, so this is a clause worth scrutinising carefully.

What should expats be especially aware of when signing a lease in Bermuda?

Finding rentals in Bermuda can be competitive, especially in popular areas and during peak seasons. The market is relatively small, so it is essential to start your search early and be prepared to act quickly when you find a suitable property. Having all required documents ready can expedite the process.

Typically, you will need to provide a valid passport, a work permit or proof of residency, a letter of employment or proof of income, and references from previous landlords. Some landlords may also require a bank statement or a credit report. Having these documents prepared in advance will help you move quickly in a competitive market.

The work permit break clause deserves particular emphasis. If a tenant is in Bermuda under a work permit, it is usual to include a termination or break clause to allow a tenancy to end on permit revocation or non-renewal. The rental period is important because a landlord and a tenant are contractually bound to each other for that time. Only in very limited circumstances, if any, can a party terminate early, and unlawfully attempting to end a rental period early can be expensive. If your landlord is reluctant to include this clause, seek legal advice before signing.

While it is not always necessary, having a lawyer review your lease agreement can provide peace of mind. A lawyer can help ensure the agreement is fair and protects your interests. Legal fees for this service can vary but typically range from $500 to $1,000. Given the relatively high cost of housing in Bermuda and the binding nature of a fixed-term lease, this outlay is often worthwhile.

There are two main laws in Bermuda that govern the relationship between a landlord and a residential tenant. Bermuda’s residential housing market is separated into two different markets: properties falling under the remit of the Landlord and Tenant Act 1974, and properties falling under the Rent Increases (Domestic Premises) Control Act 1978. Understanding which legislation applies to your property has practical implications, particularly around rent increases and security deposits, so confirm this before signing.

Are condition reports common in Bermuda before signing a lease?

Condition reports — also known as property inspection reports or check-in inventories — are not as formally standardised in Bermuda as they are in some other jurisdictions (such as Scotland, where a landlord is legally required to provide a written inventory). However, they are considered good practice and are increasingly common, particularly in the expat rental market.

A condition report typically documents the state of the property and all its contents at the point of move-in, noting any existing damage or wear and tear. This protects the tenant from being charged for damage that was present before they moved in, and protects the landlord by providing a benchmark against which the property’s condition can be assessed at the end of the tenancy. Most landlords in Bermuda require a security deposit, usually equivalent to one month’s rent, which is held by the landlord and returned at the end of the lease, provided there is no damage to the property beyond normal wear and tear.

Given that disputes over deposit deductions are one of the most common sources of conflict between landlords and tenants worldwide, it is strongly advisable to request a written condition report or inventory before move-in, even if the landlord does not volunteer one. Walk through the property together, photograph all rooms and any pre-existing damage, and ensure both parties sign and date the document. Retain your copy throughout the tenancy.

Where a furnished property is concerned, a detailed inventory is especially important. It should list every item of furniture and appliance provided, along with notes on their condition. If a deposit is insufficient, a well-drafted tenancy agreement requires a tenant to make good any shortfall. The lower a deposit, the higher the risk of not covering tenant damage in full. A thorough, agreed inventory at the start of a tenancy is one of the most effective ways to avoid such disputes altogether.

What qualifications and licences should letting agents in Bermuda hold?

The Real Estate Brokers’ Licensing Act 2017 replaced the Real Estate Agents’ Licensing Act 1976. The Act modernises the operation and supervision of the real estate industry by the Superintendent of Real Estate, in accordance with international standards. Any letting agent or broker operating legally in Bermuda must be licensed under this framework.

The licensing system distinguishes between brokers and agents. For new applicants, passing a real estate examination with a score of at least 70% is required, along with GoAML registration confirmation issued by the Financial Intelligence Agency (FIA) for brokers. Agents work under the supervision of a licensed broker, and brokers carry a higher level of regulatory responsibility, including anti-money laundering obligations.

All brokers must register with the Financial Intelligence Agency (FIA), which is the body to which reports of suspicious activity must be made. Applications for criminal background checks are to be made directly to the Bermuda Police Service, and copies of the criminal background check results must be submitted with each broker and agent application. This ensures that all licensed professionals in the sector have undergone vetting before practising.

The examination used to qualify agents is administered by Bermuda College and covers both practical real estate knowledge and anti-money laundering/anti-terrorist financing obligations. The real estate licence fees are $635 for brokers and $105 for agents (as of the most recently published figures — check the Government of Bermuda’s real estate licensing page for current amounts). When working with a letting agent, you are fully entitled to ask to see their licence, confirm their registration status, and verify which broker they operate under.

Is there a professional association for letting agents in Bermuda?

The primary regulatory body overseeing letting agents and real estate brokers in Bermuda is the Office of the Superintendent of Real Estate, which sits within the Government of Bermuda. Licensing, compliance, and enforcement in the sector are all administered through this office. You can verify an agent’s licence status or direct a complaint to this body via the Government of Bermuda’s real estate licensing portal.

Beyond the regulatory framework, the Bermuda Real Estate Association (BREA) is the professional membership body representing estate agents and brokers on the island. BREA-affiliated agents are expected to adhere to professional standards and a code of ethics, and membership is widely regarded as a mark of professional credibility in the local market. When selecting a letting agent, look for BREA membership alongside a valid government licence as indicators of a reputable agency.

BREA can be contacted at:

• Website: Check the official Government of Bermuda website or conduct a local directory search for BREA’s current contact details, as web addresses and phone numbers can change
• Advice: The Bermuda Consumer Affairs department (consumeraffairs.bm) can also provide guidance on landlord and tenant legislation and signpost you to the appropriate regulatory contacts

If you encounter a letting agent who cannot produce a valid government licence or who is not registered under the Real Estate Brokers’ Licensing Act 2017, this should be treated as a serious red flag. The Act modernises the operation and supervision of the real estate industry by the Superintendent of Real Estate in accordance with international standards, and operating without a licence is an offence. Dealing only with verifiably licensed agents helps protect your interests throughout the rental process.

Frequently asked questions

Can a landlord in Bermuda increase the rent at any time?

All homes and apartments with an annual rental value (ARV) of less than BM$24,600 are subject to rent control. Rent increases must be agreed upon by the landlord and tenant, and if the tenant refuses to agree, the landlord must ask for approval from the Rent Commissioner. For higher-value properties not subject to rent control, increases are governed by the terms of the lease and market conditions.

What happens if there is no written lease in Bermuda?

If there is no written agreement, or an expired agreement, and rent is paid monthly, the law implies a month-to-month tenancy. A month-to-month tenancy continues until either the landlord or tenant gives at least one clear month’s written notice to the other. While an oral agreement may be legally valid for tenancies of under three years, it is always advisable to have everything in writing to avoid disputes.

What documents will I need to rent a property in Bermuda?

Typically, you will need to provide a valid passport, a work permit or proof of residency, a letter of employment or proof of income, and references from previous landlords. Some landlords may also require a bank statement or a credit report. Having these ready before you start viewings will speed up the process significantly.

Are utilities usually included in the rent in Bermuda?

Utilities are not typically included in Bermuda rentals. Tenants are usually responsible for setting up and paying for their own electricity, water, internet, and other utilities. These services can be relatively expensive compared to other countries, so it is essential to budget accordingly.

Who is responsible for property repairs in Bermuda?

Under implied terms for oral agreements of less than three years, the tenant is responsible for running repairs to the interior, while the landlord is responsible for repairs to the exterior, main structure and tanks. A landlord should also keep services in working order. Always check how these obligations are set out in any written agreement, as these terms can be modified by mutual agreement.

Can I sublet my rental property in Bermuda?

Subletting is generally not permitted without the landlord’s express written consent. It is understood that no subletting of any rental is permitted without prior approval. Proceeding with subletting without such consent is typically a ground for termination of the tenancy, and tenants should always seek written permission before making any such arrangement.

What should I do if my landlord refuses to return my security deposit?

If the landlord fails to meet their obligations, the tenant can apply to the Magistrate Court. Once relevant matters are resolved, the tenant must pay all back rent to the landlord. The Bermuda Consumer Affairs department can also provide guidance on deposit disputes and the steps available to tenants where a landlord acts unreasonably.

Is it worth using a letting agent in Bermuda?

Finding rentals in Bermuda can be competitive, especially in popular areas and during peak seasons. The market is relatively small, so it is essential to start your search early and be prepared to act quickly when you find a suitable property. A licensed letting agent with local knowledge can help you navigate this fast-moving market, though you should factor in any agency fees, which are typically a percentage of the annual rent.