sarhollow Posted September 6, 2007 Report Share Posted September 6, 2007 Hi all, We have just had a young couple move into our property who got gleaming check results. However 5 days (!!!) into their agreement they split up and there is apparently no hope of a reunion. They are offering to let us keep the deposit and the 1 month's rent in advance if we let them move out asap. We then effectively have just under 2 months to find someone else. Is it ok to let them move out before the end of the term (6 months) they signed on the tenancy agreement? Thanks, SHMG Link to comment Share on other sites More sharing options...
J4L Posted September 6, 2007 Report Share Posted September 6, 2007 Hi all, We have just had a young couple move into our property who got gleaming check results. However 5 days (!!!) into their agreement they split up and there is apparently no hope of a reunion. They are offering to let us keep the deposit and the 1 month's rent in advance if we let them move out asap. We then effectively have just under 2 months to find someone else. Is it ok to let them move out before the end of the term (6 months) they signed on the tenancy agreement? Thanks, SHMG You could be funny and tell them that you want the whole 6 months but from experience I don't think you'll have much luck without taking them to court. This is an unfortunate situation for them and sometimes it happens. I think with 2 months to find a tenant should be ample time so accept their offer and let them go. Make absolutely sure that you get this in a written agreement and witnessed aswell just to cover yourself though or it could come back at a future date and bite you on the a**e. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted September 6, 2007 Report Share Posted September 6, 2007 My Standard "system" for dealing with with situation is to charge them up to the point where a new T moves in, also the old tenant pays for procurement of new new tenant ...if this is done quickly then i woud not overcharge the outgoing T .....i would refund the difference ...how fair is that .... However if it takes seveal months to find a new Tenant then old T will remain liable until new T is found ..... Whatever happens get agreement in writing ...all this is in my ast ...."with consent of LL which or maynot be given" ! Simon Link to comment Share on other sites More sharing options...
pugsy Posted September 6, 2007 Report Share Posted September 6, 2007 How do you ensure that they pay, but they vacate also? The last thing i'd want is someone saying, ok, if i'm liable and i'm paying, then i'm staying, but then not being able to afford it, 'cause their better half has legged it. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted September 6, 2007 Report Share Posted September 6, 2007 How do i ensure they pay .......? Because not to is very expensive(late payment fees - reminder admin cost-interest etc) and will utimately result in Debt collector threat/action then court plus bond in hand --haventt had any problems so far !!! Also ocasionally will take credit /debit card details (with written permission to charge monthly) or post dated cheques or just trust them to pay by SO or cash ...... Same position as if they were ocuppying really ! Simon Link to comment Share on other sites More sharing options...
J4L Posted September 6, 2007 Report Share Posted September 6, 2007 Personally i'd be quite happy that they offered the deposit as "part payment". I agree "to some extent" that you 'could' suggest that if you haven't got a Tenant then you will charge them, but that's rocky ground, because if you suggest that they pay 'rent' then they are entitled to live there, you potentially have all the hassle of arranging viewings etc around them and we all know it's easier to let it if it's EMPTY! With regard the deposit, it is actually a bond against damage to the property at the end of a tenancy, and nothing to do with rent arrears so effectively you have one months rent 'in advance' if they've offered this! This is a GOOD thing! It gives you MORE than 4 weeks grace!!! Please REMEMBER that the deposit is THEIRS, by law, and not YOURS, regardless of how you dress it up!!! "How do you ensure that they pay, but they vacate also? The last thing i'd want is someone saying, ok, if i'm liable and i'm paying, then i'm staying, but then not being able to afford it, 'cause their better half has legged it." If a Tenant wants to stay then they have to prove to you that they can pay, give them a chance to do this and you will quickly realise whether they can or can't afford it! If you read through many of Simon's posts he always advocates using debt collectors, and i'm sure that in context this system works for him, and that's quite personal, but please be careful when you decide that this is the way for you because sometimes communication BEFOREHAND can prove a better tool. You've been offered the remainder of the months rent AND the deposit! It may take a week or so to re tenant the property, BUT at least the Tenant is out, which leaves you access, and the opportunity to decorate/improve if you need to, plus you have "legally" fulfilled your obligations. Plus, and this is the crux of it, you have appeared diplomatic in your decision and "hopefully" the Tenant passes on your contact details to a friend, who either calls you about renting a property or passes this onto another friend who needs somewhere and the word is, that you are 'fair'. If a Tenant feels something is "fair" they generally TALK about it to their friends. A MASSIVE 50% of new letting business is by way of referral!! Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted September 7, 2007 Report Share Posted September 7, 2007 Personally i'd be quite happy that they offered the deposit as "part payment". This is exactly what deposit is for should they default! and should be returned if not required once re-let..... If flat takes several months to re-let then clearly not adequate .... I agree "to some extent" that you 'could' suggest that if you haven't got a Tenant then you will charge them, but that's rocky ground, because if you suggest that they pay 'rent' then they are entitled to live there, you potentially have all the hassle of arranging viewings etc around them and we all know it's easier to let it if it's EMPTY! HMMmmmmmmm They have just signed an ASt (5days !) presumably joint so if ref was adequate the of course they can afford it ....AST is a legal agreement and commitment for term so offer to assist and end as soon as new T is procured is more than helpful ...rolling over and dying for them is about as weak management as can be found or demonstrated ....If they are paying for it of course they are entittled to live there ...this provides security for LL investment apart from anything else ..and if T doesn't want to pay full term ...i find in my experience will bend over backwards to assist in viewing so as to vacate asap .....Prop easier tolet empty ...WHAT? WHY ? fresh coffee furniture flowers and beds with bedclothes offer afar more appealing presentaion ..... With regard the deposit, it is actually a bond against damage to the property at the end of a tenancy, and nothing to do with rent arrears so effectively you have one months rent 'in advance' if they've offered this! This is a GOOD thing! It gives you MORE than 4 weeks grace!!! BXXXXXT ...If T is in arrears first call is on deposit ...what sxxt are you talking..??Yes you have one month but nothing more ...i have known props take 6-12 months to fill and as you are now doing "extra" work - cost of new T procurement should also be covered -YEP maybe you can do it in 1 day but maybe you cant ! Please REMEMBER that the deposit is THEIRS, by law, and not YOURS, regardless of how you dress it up!!! Until a legitimate claim can placed upon it ! "How do you ensure that they pay, but they vacate also? The last thing i'd want is someone saying, ok, if i'm liable and i'm paying, then i'm staying, but then not being able to afford it, 'cause their better half has legged it." If a Tenant wants to stay then they have to prove to you that they can pay, give them a chance to do this and you will quickly realise whether they can or can't afford it! As AST is 5 days old this should be a forgone conclusion as both liable assuming joint AST regardless of who is in occupation If you read through many of Simon's posts he always advocates using debt collectors, and i'm sure that in context this system works for him, and that's quite personal, but please be careful when you decide that this is the way for you because sometimes communication BEFOREHAND can prove a better tool. I always advocate WARNING of use of DC ,read posts again and you will find that i have only needed to ACTUALLY USE DC ONCE on a tenant and ONCE in my other Business activities, you will also note that i have NEVER had to take anyone to court ......If you do it right with systems in place BY COMMUNICATING AT ALL TIMES HOPEFULLY LIKE ME YOU WILL NOT ACTUALLY HAVE TO USE A DC ...just the warning and threat of such .....A big reason for this is that i do not approach problems and challenges like a spineless jellyfish i confidently outline the situation to a tenant and if they disagree explain very calmly exactly what the situation is and how we will proceed down which ever avenue they choose to take ......Do this professionally and in timely manner with all options considered and covered and T will realise that you are not about to e taken for a ride and that you are actually helping them as opposed to demanding that they stay or at least pay the full term (as you are entittled to do ) I believe that in sits like this you should re-let asap and move on ....I dont however agree that i will accept being financilly penalised for this .... . You've been offered the remainder of the months rent AND the deposit! It may take a week or so to re tenant the property, BUT at least the Tenant is out, which leaves you access, and the opportunity to decorate/improve if you need to, plus you have "legally" fulfilled your obligations. It make a month or 4 to re let as well .......Dec, improve ...they have only been in 5days ....."fullfilled"..?? way more than that .....just go collect the rent eaach month ..that is legally fulfilled !!!!!!""(as per AST!!) Plus, and this is the crux of it, you have appeared diplomatic in your decision and "hopefully" the Tenant passes on your contact details to a friend, who either calls you about renting a property or passes this onto another friend who needs somewhere and the word is, that you are 'fair'. Yep go tell your mates .....Fair LL just sign the contract .....not important just leave when you like Fair or Fairy ?????????????.................!!!!!!!!!!! Fair is for them to pay until re let and costs covered.[/color] If a Tenant feels something is "fair" they generally TALK about it to their friends. Yep softest LL in the area ....go tuck him up..!!!!!! A MASSIVE 50% of new letting business is by way of referral!! Very true and what you do every day sets a new precedent for tomorrow so take care .... Link to comment Share on other sites More sharing options...
Trenners Posted September 7, 2007 Report Share Posted September 7, 2007 Hi, I think the advice given by rodent is extreme and a more balanced opinion - that would probably represent the majority - is given by J4L. Simon: debt collection is not the answer to every posting ! <grin> Mark Link to comment Share on other sites More sharing options...
sarhollow Posted September 7, 2007 Author Report Share Posted September 7, 2007 Thank you to everyone for your responses, all very helpful and have taken it all on board. We are going to let them go (the girl has already gone and the bloke is back with his mum already) and accept teh deposit and 1 month's rent, although not before checking the property, getting the keys and gettting them to sign that they have gone etc. Judging by the response to the ad first time round I don't htink we'll have a problem refilling. I presume the DPS will give me all the deposit back asap?! Thanks again everyone, SHMG Link to comment Share on other sites More sharing options...
sarhollow Posted September 7, 2007 Author Report Share Posted September 7, 2007 Hi again all, Just had a thought, is there a template document somewhere for when tenants leave before their agreement ends? or can I just write something up myself and get them to sign it? This document will need to state that they agree to: pay me the money verbally agreed end the tenancy prematurely therefore making the tenancy void then get them and a witness to sign it. If anyone can think of anything else to add please let me know! Thanks again SHMG Link to comment Share on other sites More sharing options...
GPEL Posted September 7, 2007 Report Share Posted September 7, 2007 Interesting exchange of opinions about what to do. Bottom line is if tenant wants to leave early they remain liable for the term of the tenancy agreement. However, and already tested in law, the landlord is obligated to mitigate the tenant's losses by seeking suitable replacement tenants. Suitable doesn't mean anyone, it means someone who meets the original conditions for the let. The outgoing tenant's obligations end at the point the next tenant takes possession. The outgoing tenant is also liable for the landlord's re-let costs. Any variation on this to end a tenancy early is by mutual agreement. All straight forward really. Regarding the deposit this is first and foremost to offset the cost of damages. Any residual should then offset arrears once the next tenancy has started. One big reason to do it this way is because it is easier to claim for and prove rent arrears than the subjectivity, and judges opinion, associated with claiming for damages. All things considered both sides of the argument are correct. Simon's initial comment is a correct approach to take (later comments about use of DC's is personal choice, right for some not for others) and J4L's and Trenners approach correct if landlord and tenant wish to negotiate a mutally agreeable early surrender. Should they not be able to do so, my comment above stands, whether or not in writing in the agreement. I should work for the UN... Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted September 7, 2007 Report Share Posted September 7, 2007 Thank ye kindly Gpel !! "I think the advice given by rodent is extreme and a more balanced opinion - that would probably represent the majority - is given by J4L" Guess what little bit of "fair"law we have on our side, is to be considered; extreme and unbalanced then !!!!!! Just more confirmation of the many reasons i do not see a place in my business for management by letting agents LOL(big grin ..!!!!!!!!!!!!) Unconventional methids produce unconventional results !!!!! but in this case just follow procedure as set out by british law .......(advice and opinion can now be disregarded ........and for one, alot of the above shoud most definately be disregarded ....Mark Gareth .....) "Simon: debt collection is not the answer to every posting ! <grin" No absolutely agree, but unfortunately the vast majority of posts/questions/problems on here are heavily weighted towards debt management of some kind ...the kind where someone somewhere doesn't want to pay ...so we can either write it off ...no my favorite answer but will ocassionally ..or negotiate (if possible ) or off to court (rarely neccessary if handled correctly ...) I rarely even threaten use of, let alone use this system, as i clean out the vast majority of problems with good referencing and timely action ....but alas the situations we see on here on a daily basis require a plan of action to be implemented-- as opposed to people pulling their hair out and going bald .....there are so few people with adequate debt management procedures in place it is neccessary, unfortunately, to keep informing people of the easiest, fastest & cheapest way to resolve most issues without it taking forever and growing to an unmanageable debt both for T and LL leading to eviction and court proceedings.... Link to comment Share on other sites More sharing options...
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