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Tenant wants to terminate before 6 months break clause


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Hello to all Forum Members!

I hope that some of you more experienced landlords can offer me advice how to deal with the following situation:

Tenant signed AST 1 year fixed term tenancy in March with 6 months breakclause. We're now just over 3 months to the tenancy and she has indicated that she'll probably wishes to terminate early as is in the process of buying her own place with her boyfriend, sale completing towards the end of July. She's the sole tenant on the contract, boyfriend has not lived in the property (to my knowledge).

Contractually speaking she is of course liable for the rent until the 6 months point but I'd like to find a solution that is fair for everyone. Basically I don't have problem her terminating the tenancy early, if another tenant is found straight away to minimise the void period. However, the tenancy set up cost (via an Agency) was nearly £1,000 so I'm not so keen having to fork out this money again!!!

The tenancy was done via a letting agent but we're managing the tenancy. Any thoughts anyone???

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If there is a G, remind her of this.

As you are not legally permitted to take rent from 2 sources for a period I would prefer the option to negotiate.

She buys her way out of the obligation but not by paying an agreed rental. You are then free to progress as you wish following documented surrender.

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What I do in these situations is I total up all of the costs of installing the tenants......eg agency fees, vat, rent guarantee insurance, deposit protection, inventory costs, freeholder permission etc etc and then I divide that figure by the length of the contract. In your situation I would divide the costs, not by 12 months but by the minimum term that the AST allows.......which I guess is 6 months in your case.

So lets say those costs are £1000 divided by 6 = £166 per month. If the tenant leaves 2 months earlier than the break clause allows and assuming their rent is paid up to date they would pay £332 as an exit fee.

You can of course choose another method.

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