alison perry Posted July 3, 2007 Report Share Posted July 3, 2007 I have a tenant on a 6 month Assured Shorthold Tenancy. They are 8 weeks in and have informed me (only verbally at this stage) that they are leaving - to go to a job overseas - mid August. The tenant claims this was all very unexpected. They have agreed to be as helpful as possible to get another tenant, by working with the letting agent re viewings and being flexible etc which is helpful. I have said that I will release them from the tenancy once a new tenant is signed up, and, at my request they have also verbally agreed to pay the costs associated with re-letting. I have asked her for her notice in writing, (so that I have on paper their breach of contract) and I will, but haven't yet, put in writing to them my requirements - the above. However, I know they will refuse to pay the letting fees, they have already asked if it is in the contract that they have to - and the fact that they are going overseas leaves me feeling very vulnerable to them just disappearing. I don't know how to protect myself, or if I should just sue for breach of contract....I feel really on the back foot with this, and that whatever they want to do I will have to live with. I have a 1 months deposit from them (stuck in a deposit scheme) which I hopeully I will be able to retain, but I am wondering if I just have to take any costs to me resulting from this on the chin and hope for better luck next time. Any advice most welcome. Link to comment Share on other sites More sharing options...
Trenners Posted July 3, 2007 Report Share Posted July 3, 2007 Hi Alip, This is going to be interesting. All of the things that have been verbally agreed between yourself and your tenant seem to be fair. However, I think you need to be pragmatic about the amount of compensation (for breach of contract) that you are likely to achieve. Previously, it would have been fair to withhold the entire deposit (to compensate for re-letting costs and lost rent) if you were unable to find a tenant to replace them before they left and the amount of lost rent and costs exceeded the deposit. However, now that the deposit protection laws are in place, the tenant is going to have to agree to the deposit being withheld (to compensate you) - which they may not once they have left ! If the tenants agree to the deductions then - no problem. If they don't agree then you could both agree to go to the Alternative Dispute Resolution Service (which is free to use for both landlord and tenants) but you must BOTH agree to be bound by their findings. If you don't both agree to use the ADR then you are going to end up in the small claims court. I would hope that the ADR would side with you ....... but we are into somewhat unchartered territory at the moment as the ADR is so new. To manage expectation - I would be very surprised if you manage to achieve compensation beyond the value of the deposit that you are holding ..... Good luck ! Mark Link to comment Share on other sites More sharing options...
GPEL Posted July 3, 2007 Report Share Posted July 3, 2007 Mark's advice is good. What I would add is that their liabilitty for the re-letting fees doesn't have to be in the agreement because the agreement is made on the understanding that both parties will see it to the full term, thereofre get-out clauses aren't introduced. Under common law, which doesn't have to be specified in detail in a tenancy agreement, they are liable for costs they cause you to incur through no fault of your own. Link to comment Share on other sites More sharing options...
lauralivesartnouveau Posted July 3, 2007 Report Share Posted July 3, 2007 Hi This is new territory for me My attitude is at least the tenant told you I have had four midnight runners so far this year. I would be interested to know how you get on with the TDS as I have stopped taking deposits since April as it seamed to be an unfavourable system. I worked out my average loss per deposit was less than £100 and I always got grief when making a £20 deduction let alone more. So now I charge an admin fee on application to cover this type of loss. Its always easier to get the cash before you give the keys. Oliver Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted July 3, 2007 Report Share Posted July 3, 2007 Hi They are presumably keeping up to date with rent ? So when they go you will have dep ( albeit in TDS) I would put a full claim on it due to relet costs Hopefully you will relet immediately and not lose anthing Will be very interested to hear the result from deposit scheme on this one ! Let us know! Simon Link to comment Share on other sites More sharing options...
alison perry Posted July 4, 2007 Author Report Share Posted July 4, 2007 Thanks all for your comments and advice. Up to date (although this is only 2 months) the rent has been fine, and the tenant seems fine. However, as you all say, the deposit scheme is rather unchartered territory, and I don't know how it will work out - especially as the tenant is going overseas which will make any dispute even more difficult. Best case is if they stick to their word, but......I will report back mid August with an update, and anything learnt re: the deposit scheme process. Many thanks Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.