Tenancy Agreement - tenants swapping

[miteshpatel]

I have couple of tenants who have been staying in the flat for couple of years. After the first year, we didn't sign a new tenancy agreement but continued based on the same original tenancy agreement. This is to avoid paying the agents any fees.

After 2 years, one of the 2 tenants is going to be leaving. The existing tenant has already lined up another tenant to share. Now, as a landlord, do I need to set-up a new tenanct agreement? I'm assumig yes but would appreciate if there's another way to avoid any estate agent fees.

Thanks

[Richlist]

I have couple of tenants who have been staying in the flat for couple of years. After the first year, we didn't sign a new tenancy agreement but continued based on the same original tenancy agreement. This is to avoid paying the agents any fees.

Thats OK. The tenancy has therefore become a statutory periodic tenancy.

After 2 years, one of the 2 tenants is going to be leaving. The existing tenant has already lined up another tenant to share. Now, as a landlord, do I need to set-up a new tenanct agreement? I'm assumig yes but would appreciate if there's another way to avoid any estate agent fees.

If both tenants are on the same AST (tenancy agreement) and one of them terminates this brings the tenancy agreement to an end for both the tenants. You will need to have a formal check out/ inventory and deposit refund.

Presumably you will be checking the references for the new tenant and carefully considering the need for rent guarantee insurance and/ or a guarantor.

Estate agents fees for drawing up a new agreement shouldn't be more than £50 +vat.......thats what I used to pay and after all its a standard form with a few boxes to complete. You basically have X4 options:-

1. Ask the new tenant to pay the cost.

2. Insist that both tenants share the costs.

3. You could pay it yourself and take the opportunity of raise the rent slightly at the same time. You will be able to offset the costs against tax.

4. Find an agent who provides a new contract for free.

[miteshpatel]

Thank you for your response.