andyask Posted April 2, 2007 Report Share Posted April 2, 2007 I have a nice group of professionals in my Btl Apartment on an Joint AST contract. However, one of the tenants advises that her work may now take her abroad 2 months into her 6 month contract. A Clause in my contract allows for a £100 "Reassignment Charge" for early departure assuming a replacement can be found. As she has been very good in keeping me updated in advance I have told her (not in writing) that provided she gives me a months notice I would only apply a £25 charge. I still have her full months deposit and rent is paid by standing order. The flat is in a nice area , is well maintained and looked after and finding a new tenant would not be too hard. I wonder if I have been too generous - should I charge the full £100 ? Comments appreciated. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted April 2, 2007 Report Share Posted April 2, 2007 Hi andyask "Brain before gob!" I personally am a man of my word ! If you have told her this is what you will do for her - then clearly this is what she will expect - If you go back on your word then the rest of the "nice group of professionals " will see you for what they believe you are; a liar, not to be trusted - bit harsh i know! - but what would you think if you were in their shoes ! Now - do you think they will treat you with respect after this, or reflect your attitude back for the remainder of the term ?! and possibly not re-sign as a direct result of this ! "A Clause in my contract allows for a £100 "Reassignment Charge" for early departure assuming a replacement can be found" Here is your salvation depending on what you have already said - replacement tenant to be found by whom - Landlord or Tenant ? have you discussed this with her ? does this include tenant Procuration fee or is it just lease change fee? Is there any other reference to procuration fees for replacement tenants ?(withinth lease) If she finds a suitable rep Ten i would go one step further and charge her nothing ! If however you have to advertise and do viewings etc then maybe you can have the conversation with her again - just to confirm the ground rules ! you find £0 or £25 i find £100 or £25 plus whatever you decide it did cost to get the new tenant ? The outcome of this will be largely controlled by what is in the lease and what you have already said! OR you could just leave it exactly where it is and charge her £25 regardless! Be interested to hear what you do ! Simon Link to comment Share on other sites More sharing options...
andyask Posted April 2, 2007 Author Report Share Posted April 2, 2007 Hi Simon Always nice to hear others' opinions! I did not intend to go back on my word (did I imply that..) - just wondered what others would have done/said. I did say to her I would confirm other departure circumstances by email. I will stick to what I have said - one month's notice will be a £25 charge which is all inclusive and covers procuration etc (although I will point out the clause in a vain attempt to highlight my generosity) I will always find the new tenant myself and do relevant interviews/checks. I would not trust or expect a busy professional to do this. As I am the leaseholder , this is my name and not directly relevant, unless you are referring to management company rules on subletting in the apartment - no worries here as I am part of a landlords group about to take over the management company by EGM If she wishes to leave with less than one months notice, then I will charge £100 whether or not another tenant is found. (the contract does not say who should find the tenant) The main aim to keep it very simple and easy to understand without mentioning terminologies/fees which are not mentioned in the contract e.g procuration, lease change etc. My main two tenants (two girls) are my top priority as they are very reliable and look after the place. Interestingly one of them works for a property management company. They also get to choose their 3rd housemate in viewing sessions and I allow them a veto as well on unsuitable candidates - works very well but tis always tricky when circumstances change. I wouldn't want to force someone on them. Will post the outcome here. Andy Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted April 3, 2007 Report Share Posted April 3, 2007 Hi Andy I would tidy up the clause in the lease so that in less amicable circumstances there is clear information for all parties concerned ! Personally when faced with this, as i often am!, I tell them straight; The legal position is that you can leave whenever you like - but you will be responsible for the rent and your share of the bills until the min fixed tenancy period has transpired - However as a Landlord i realise people's circumstances can sometimes change quickly without a lot of warning - and so what i do is offer the tenant th opportunity to find a suitable replacement and void their lease on the day the new person signs a new one if the tenant finds the replacement i charge nothing If however i or an agent findsthe tenant i will have a cost to cover - If the agent finds the tenant i will copy the bill and expect the tenant to cover it - if i find the tenant then i charge a fee in line with the situation ie £50 for a "flatsharer" or far more to refill an 8 bed house! I also explain this could mean they may have to pay several months rent and bills before the rep tenis found ...... which is clearly better than a "harsh/strict" Landlord who will just say "6mth lease - you pay 6mth" The above would apply in a seperate lease situation. After saying all this I note that you have them on a "joint agreement" in this case i would not really get involved to much - other than to say the rent on the flat rent is "£x" so either the leaving tenant pays their share or the other 2 start paying half each instead of a third "joint and several" etc and see how quick they produce a new 3rd friend. I have a 3 bed flat which i have had for 5 years and have never advertised or done a viewing on it - when i bought it, it came with 3 chinese girls and i have have had many tenant changes since the originals, but they always fill it themselves as they leave ! All i do is reference and sort leases ! (been dead lucky with this one!)always chinese and still chinese people ! Simon Link to comment Share on other sites More sharing options...
andyask Posted April 6, 2007 Author Report Share Posted April 6, 2007 FInal Chapter...Agreed a £25 charge and 1 month notice. Already advertised and had three queries in 2 days, 1st viewing today. Will in future charge minimum £100 to leave early if tenant finds replacement or £150 if they don't, will get this into the contract. As for the Chinese workers, sounds good, I hope you don't get the Home Office knocking on your door asking about residence permits ;-) Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted April 6, 2007 Report Share Posted April 6, 2007 Hi Andy Good idea my only observation on this is that you have now created what is basically a one month lease ! If all they have to do is give one mth and pay £100 - £150 ! I would tie it down a bit tighter and add that "rent will remain payable until such time as a suitable replacement is in situ or the initial fixed period has passed " as there can be voids of several months - if they only pay for 1 month then you get a void; the remaining tenants will get bigger bills, or are you going to party the 3rd portion of them. Also worth noting that they are on a joint AST so you really need proper written agreement from all parties - i would take proper legal advice b4 you start rewriting the lease as the other tenants could cause you problems ! Simon Link to comment Share on other sites More sharing options...
BTLWhizz Posted April 9, 2007 Report Share Posted April 9, 2007 FInal Chapter...Agreed a £25 charge and 1 month notice. Already advertised and had three queries in 2 days, 1st viewing today. Will in future charge minimum £100 to leave early if tenant finds replacement or £150 if they don't, will get this into the contract. Is this legal? I do know that putting financial penalties into a contract is a very tricky business. See: http://www.arla.co.uk/news/28082002.htm Does it impose disproportionate or unfair financial penalties on the tenant? I would have thought that without such a clause, a landlord could claim financial damages according to the actual loss. For example, to recover rent for a void that would not have occurred if the contract had been fulfilled, plus a proportion of the advertising and contract costs. But a blanket £100 or £150 looks tricky to me. It could be that the £100 or £150 is less than the real costs, in which case putting the clause in the contract benefits the tenant and costs the landlord. Or, it could be that the true costs are far less, if the landlord prints out the contract and has minimal other costs. In which case the clause is a profit-making financial penalty clause, which as the banks have found is tricky. Link to comment Share on other sites More sharing options...
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