my tenant wants to move out early

Euphoria1z

Hi

just got a call from my tenants saying they want to end their contract early. They have been in my flat for over a yr, renewed their contract for another year in Jan 09 , but they just told me they got a house from the council and wish to move out. Im going to see them on saturday to discuss this. just wanted to know how to best deal with this. is it reasonable to request for atleast 2 months notice, or shall i say till it rents out again? do i have the option of saying no point blank ? (wont be doing this as they are a really nice couple with a baby).

i dont mind them leaving early as long as they help out in getting it rented again i.e viewings etc. would their deposit need to be returned in full (assuming no damage/bills outstanding) or can i hold part of it for the inconvenience? there currently on a 1 yr AST that runs out in Jan 2010 with no break clause in their contract. whats the best way forward?

Thanks

Jowo_2

You can hold them to the fixed term as they've signed a legally binding contract but you've already indicated no wish to do this and in reality, most landlords will just mitigate their losses by agreeing to a surrender and reletting the property.

It's not unusual for landlords to expect the outgoing tenant to facilitate viewings (its in their best interest to do this anyhow), pay for any additional expenses incurred during an early relet (such as advertising fees) and pay the full void period until new tenants move in.

Or you can simply agree to a surrender on x date without any conditions or penalties on their part but you take the hit in the event that the property does not get relet after they've moved out.

Smiley82

Hi,

Check out the following link from Shelter:

http://england.shelter.org.uk/get_advice/renting_and_leasehold/ending_a_tenancy_or_licence/ending_a_fixed_term_agreement

I think the legal side of things is:

The tenant is still liable for the cost of renting for the fixed period. If, by agreement you agree to allow them to find a replacement tenant, they are responsible for the cost of the rental until which time a replacement tenant is found. They are also responsible for any costs incurred in re-renting the property (i.e. advertising, real estate agents fees etc). As they have signed a fixed term agreement, you are perfectly entitled to expect rent from them for that fixed term, and getting a replacement tenant should not be at any cost to yourself.

Realistically though, if they have been good tenants, I would handle it like this:

Tell them that you are happy to find replacement tenants, and agree on a date that the place will be available from (i.e. the date they intend to move out to their new council house). Tell them you will market the property as available from that date, however, should you not be able to find any replacement tenantes, they will be responsible for the rent until such time that a tenant is found. They are welcome to assist in finding replacement tenants, but that anyone found must pass reference checks, deposit requirements etc, as set out by you.

Also, that any costs incurred in re-letting the property are payable by them, but that you will let them know about the costs before they are incurred.

Tell them all this, then see how the discussion goes. If you think it's going to be possible to find new tenants easily, it might not be an issue

Good luck!

DVardysShadow

Why did you bind them to a second fixed term rather than let the tenancy go periodic?

Euphoria1z

kool, thanks, finding tenants should not be too much of a problem i dont think, its a 1 bed flat 2 miles from city centre. holding them to the full term might not be possible, if theyve been given a council house then im assuming their finances might not allow this. i was thinking of agreeing a date and then witholding their deposit (1 month rent instead)? if they agree then is it ok, or can i only charge costs incurred and nothing else?

Euphoria1z

DVardysShadow wrote: »

Why did you bind them to a second fixed term rather than let the tenancy go periodic?

its what they wanted at the time

mlz1413

I would ask them to do viewings but agree they will be at times to suit and no more than twice a week.

Also tell them they are liable for rent until it is rented to suitable tenants and whilst you will do your best to ensure the flat is rented you cannot give a date but will keep them informed.

When you have found suitable tenants you can pass on reasonable costs ie the advertising and out of pocket expenses incurred during their fixed term. This can be from the deposit but ensure they know so that there is no disagreement whent he deposit scheme is contacted. Also remember that deposits are towards damage so if you can do an inspection before they leave so any problems can be discussed and sorted out.

After your meeting I would put everything agreed in writing, or even take a letter with you for them to sign saying they understand and agree.

I realise they are nice people and you want to help them, but equally you don't want to be out of pocket.

good luck as you say you will hopefully get new tenants quickly and the current tenants will only pay a really small amount of extras.

DVardysShadow

Euphoria1z wrote: »

its what they wanted at the time

They seem clueless. I'd want more rather than less from them to end the tenancy.

creditboy

Theres no need to be unreasonable towards them. Tell them they must pay rent untill a suitable tenant is found and pay in full/contribute towards the cost of advertising. Providing they have not caused any damage then return there deposit in full. They should be expected to allow viewings with appropriate notice.

sjcollett

If they have a council house you could find they might be moving sooner than you think [that's what happened to me] I think the council will onyl give them 1 month so you don;t have too much room for negotiation. may be best just to get property on market and rented again asap and cut your losses

clutton_2

i had a tenant leave me to go into a council house with 3 days notice - the local council dont expect private tenants to have to give one months notice - altho they expect THEIR tenants to give them notice