MarkJ Posted November 2, 2010 Report Share Posted November 2, 2010 I am in the process of signing up a tenant family in an up-market property on a 24 month contract. As this is an expensive house I need some commitment from the tenant so that I wont be stuck with looking for a new tenant again in 6 months time. Tenant is happy to sign for 24 months and we have negotiated a 4 month notice period. Now however well-written a contract is we all know that, being realistic if the tenant walks we are all usually better off leaving it be and putting our efforts into getting a new tenant rather than chasing the old one. So in effect have I simply got a rolling 4 month contract here? On analysis it looks very lopsided; tenant can stay for up to 24 months even if I want him out but he can leave with 4 months notice? On a secondary issue; in an effort to allay my concern over commitment, he has said he'll give me 3 months rent as a deposit. As i'll have to put this is DPS, does this give me any recourse if he leaves either a) having given 4 months notice but short of the full 24 months or not giving notice and simply leaving? Can I use the deposit in either of these situations as compensation to me to cover missing months? Thanks in advance for any advice given. markJ Link to comment Share on other sites More sharing options...
Mortitia Posted November 3, 2010 Report Share Posted November 3, 2010 Hi Mark, The fact the house is expensive is irrelevant. When renting out you can never judge how a tenant will re-act to events in his/her lives that may cause them to want to move and we are in uncertain times. You can't gurarantee they will stay 24 months and I would not even try to get someone into a contract like that. You could do a 1 year contract with a 6 month break clause - standard in London or a 6 month AST and go periodic at the end of that. Personally I can't see the value in trying to tie someone down where they don't want to be because if they want to go you can't stop them. Mortitia Link to comment Share on other sites More sharing options...
Trenners Posted November 3, 2010 Report Share Posted November 3, 2010 I totally agree with Mortitia. Tenants will not rent (or pay rent) on a property where they no longer wish to live. 6 month AST followed by a statutory periodic tenancy is always the best way to let a house as it is easy for the landlord to get rid of the problematic tenant (at the end of the 6 month term with a Section 21). Mark Link to comment Share on other sites More sharing options...
Melboy Posted November 3, 2010 Report Share Posted November 3, 2010 I have nothing to add to that...... other then to agree with the comments above. Mel. Link to comment Share on other sites More sharing options...
MarkJ Posted November 3, 2010 Author Report Share Posted November 3, 2010 so are you saying that really there is no way to get any commitment out of any tenant? What you are all saying is, they can sign however long they want but if they up sticks and leave whenver they want then it's just 'hard luck'? Can you legally keep a deposit in lieu of notice period? Link to comment Share on other sites More sharing options...
Melboy Posted November 4, 2010 Report Share Posted November 4, 2010 Mark..... If a tenant intends to break a contract for whatever reason that may be it is often easier for you, the Landlord to let that person leave, hopefully, amicably, rather than trying to chase the tenant for breaking a contract term and money that may be owed. It will cost you more in legal fees than you can get back in rental money and still posssibly end up with nothing in return. So what we are all saying it is better to have short AST contracts rather than 2 years BUT if you want to go down that road of course just do it with the hope everything stays OK which of course it well may but if your tenant requests to leave at any point after the initial 6 months then let tnem go and find a replacement tenant....far easier and you will sleep more soundly as well. You could argue your case to keep the deposit in lieu of rental payments and you may well succeed but in today's Britain you will learn that the Law is far more in favour of the tenant than the landlord.....sad but true. Mel. Link to comment Share on other sites More sharing options...
Trenners Posted November 4, 2010 Report Share Posted November 4, 2010 Mark..... If a tenant intends to break a contract for whatever reason that may be it is often easier for you, the Landlord to let that person leave, hopefully, amicably, rather than trying to chase the tenant for breaking a contract term and money that may be owed. It will cost you more in legal fees than you can get back in rental money and still posssibly end up with nothing in return. So what we are all saying it is better to have short AST contracts rather than 2 years BUT if you want to go down that road of course just do it with the hope everything stays OK which of course it well may but if your tenant requests to leave at any point after the initial 6 months then let tnem go and find a replacement tenant....far easier and you will sleep more soundly as well. You could argue your case to keep the deposit in lieu of rental payments and you may well succeed but in today's Britain you will learn that the Law is far more in favour of the tenant than the landlord.....sad but true. Mel. Yes - I totally agree with Melboy. Legally you will have a case to pursue the tenant for rent money if they are in breach of the tenancy term .... but it is not worth the time, effort or money ... and there are no guarantees that you will win your case. It is best practice to collect the rent from those that want to rent from you .... and evict the rest! Mark Link to comment Share on other sites More sharing options...
MarkJ Posted November 4, 2010 Author Report Share Posted November 4, 2010 thank you all for your input. Can I re-ask; Can you legally keep a deposit in lieu of notice period? Link to comment Share on other sites More sharing options...
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