advice needed about renting separate rooms or a flat

[MICHAELA8668]

This leads on from another post I made about 2 tenants I have. I have some specific question that have arose from speaking to them and need advice. To summarise, our 2 bed flat has been let to 3 women under a standard AST agreement. They have been using the lounge as a third bedroom with out consent. One of them is moving out and I explained that means they will either have to all move out or the remaining 2 tenants sign a new contract under a lower rent betwen the 2 of them (we charged slightly more for 3 due to wear and tear). They want a third person to move in and take over the current contract. They are happy to live with someone they dont know once checks have been carried out. This means we would have to advertise the flat as a flat share to take over the contract. We normally pay an agent to find a group (normally a couple and 1 person) to rent the flat and they have always moved on at the same time. My questions are this:

1. Firstly, can someone take over a contract or should we get them to sign a new contract

2. Rather than a AST contract for the flat as a whole should we be looking at this being a room rental if so does anyone know where we get contracts for this and what this means in terms of legislation.

3. I assume an agent wouldnt deal with flat shares?

Tenant 3 moves out in 2 weeks time so I need to get this sorted. I am tempted to say to tenants 1 and 2 they either move out at the end of the month when their current contract expires or sign a contract for the 2 of them (no 3rd person sleeping int he front room) in which case the can hand their notice in when they like if they can't afford to do it. That way we can get the agents in and rent as a normal 2 bed. However, despite these recent problems the tenants are good in all other aspects and if I can avoid leaving the property empty it has to be preferable. We are in Wimbledon and from what I see the market is pretty saturated with similar properties for rent right now.

[Melboy]

1. Firstly, can someone take over a contract or should we get them to sign a new contract

A. No.......New contract signed and dated etc.

2. Rather than a AST contract for the flat as a whole should we be looking at this being a room rental if so does anyone know where we get contracts for this and what this means in terms of legislation.

A. Room rental becomes a HMO? Not sure as I am not experienced in HMO's as I have never had one....too much hassle these days with all the new rules and regs.

3. I assume an agent wouldnt deal with flat shares?

A. Possibly, but doubtful imo.

I would work on the 2 remaining on an agreed rental with the strict condition of no sub letting without express permission form you. If they can't agree then it has to be agreed on a leaving date by Landlord /Tenant.

Mel.

[Mortitia]

Hi Michaela,

I agree with what Mel writes but it sounds like you are desperate to get someone in so will go against common sense to achieve this.

Stick to it being a 2 bed flat and don't get mixed up in the House of Multiple Occupation route. If it is 2 double beds then you could let to 2 couples which is a popular idea.

What about doing a let for the Wimbldon tennis fortnight since the place is coming available soon? You can command high rents just for this short time for people who want to be there all the time and self cater then get a regular set of tenants later. Check out specialist agents in you area for this or check online - it is worth doing and will get shot of your subletters.

How do you know the market is saturated? Sometimes you just have to wait to get the right tenant, make the rent more affordable or maybe do your flat up to be more desirable.

Mortitia

[MICHAELA8668]

Thanks for your advice. Its all sorted now. They are all leaving and we have had loads of enquiries so it seems it will be gone in no time.