Giving bad news to the "landlords"

starson79

I have rented a room for the last month with a couple who own the house. They are moving out this week into another home and I agreed with them a couple of weeks ago that even though I couldn't find someone to share with I would sort something out fiinancially and scrape by in January to pay the rent and deposit. They kept the place for me on this understanding. Although they have not had much interest in the place otherwise (it's pretty expensive rent).

I signed a very vague agreement (written by one of the "landlords" - a five-minute one paragraph job), "agreeing" that the tenancy contract would be written up and signed when the new situation (new housemate found) was finally determined.

I CANNOT afford to rent the place on my own - and now I have to turn around at the last minute and tell the "landlords" that I won't be renting the place after all. This means the place will be vacant from January onwards and I guess they will really not be happy with me.

Help - before I muster up the courage to tell them (because really the sooner they know the better eh?!) can someone offer me some words of wisdom, advice, support, hatred?

I'm really dreading this. I'm not signed into anything final - the agreement is not detailed enough to make some sort of claim against me. But I feel bad for them. I can see they want me to rent the place because they want the money - but if I can't afford surely it's better off them finding someone else!

Thanks. Rant complete.

Accountant_Kerry

you are a lodger not a tenant, just tell them you won;t be staying you have no legal obligation.

theartfullodger

Accountant Kerry is right - but when your landlord moves out you stop being a lodger & become a tenant. In your shoes I'd give written notice, keep a copy... say 28 days if that suits you.

If they get difficult ask if you can see that gas safety certificate & enquire if they are declaring income to tax man...and do they have permission to rent from mortgage compnay & do they have Landlord insurance..

Cheers!

Artful

<sebb>

I suspect the OP already knows that they have no legal obligation to the Landlord, and is just looking for advice on how to handle this as diplomatically as possible.

In your shoes I'd just be open and honest and try to make yourself scare between now and your moving out date. Have you got somewhere else to go yet - you should sort that out ASAP.

I hope it goes well for you.

<sebb>

Oh hold on a minute, I've just re-read this - do they own the house or were you all just tenants? And the other couple agreed not to surrender the tenancy so you could get someone else?

tbs624

<sebb> wrote: »

Oh hold on a minute, I've just re-read this - do they own the house or were you all just tenants? And the other couple agreed not to surrender the tenancy so you could get someone else?

The OP says

starson79 wrote: »

I have rented a room for the last month with a couple who own the house.

So for the past month OP has been a lodger but had agreed to take on a tenancy of the property when the owners moved out.

tbs624

OP - just tell them you cannot afford it. They then have the option of finding someone else to take the property at the original high rent or they perhaps offer it to you at a lower rent, perhaps for an initial couple of months to give you extra time to find a co-tenant. It would be cheaper for them than leaving it empty. How does the rent fig stack up against other similar properties locally?

benjo

If you cant afford to stay there paying the whole amount of rent yourself but you still 'want' to stay there - tell them this, perhaps they would prefer to have your normal amount of room rental while you or they find another house sharer which will give them the full amount they want.

They might be upset - but it's their house, their responsibility to find tenants and ultimately their investment/risk.

Goodluck, Im sure it wont be nearly as bad as you are worrying it will be.

starson79

I appreciate everyone's advice. Thank you everyone. :beer:

I will call the owners this morning and explain that I cannot afford to pay the rent and deposit. It is better to be open and honest.

The idea of offering to stay in the property and pay half the rent until they find someone else to rent the property in entirety sounds good but the more i think of it the more uneasy I feel!
What would happen with payment of the bills - who would set up the accounts (me or the owners). Will I technically be a tenant once they move out? I guess so. What rights do I have living in their property without having signed a contract??!! It sounds quite dangerous...!
However, I doubt they have got their landlords insurance etc sorted. They will be writing up the tenancy contract themselves (to avoid letting agents - and solicitors? fees). I think they are still learning how to let out a property - so they will inevitably miss things out.

Yes - they will be better off (and so will I because I'm having trouble trying to find another room to rent before the 3rd January!) if I stay at the property in the meantime but I'm worried about that situation.

Easier just to cut and run? I don't mind sleeping on a sofa somewhere for a few weeks...

tbs624

starson79 wrote: »

I appreciate everyone's advice. Thank you everyone. :beer:

I will call the owners this morning and explain that I cannot afford to pay the rent and deposit. It is better to be open and honest.

The idea of offering to stay in the property and pay half the rent until they find someone else to rent the property in entirety sounds good but the more i think of it the more uneasy I feel!
What would happen with payment of the bills - who would set up the accounts (me or the owners).

It is usual for the T to be responsible for paying bills. LLs who include utilities in the rent figure usually end up out of pocket because the T has little incentive to keep an eye on heating costs etc. You would merely take a meter reading on the day that the owners move out and then contact the utility providers to take over bill responsibility. If you were there as sole occupant you could claim a discount on your C Tax.

starson79 wrote: »

Will I technically be a tenant once they move out? I guess so.

Yes, you would be a tenant.

starson79 wrote: »

What rights do I have living in their property without having signed a contract??!! It sounds quite dangerous...!

If you have occupancy of the property and were paying rent then the law is likely to assume a default Assured Shorthold Tenancy is in place. The usual LL/T obligations would apply - gas safety, tenancy deposit regs etc (Eng/Wales)

starson79 wrote: »

However, I doubt they have got their landlords insurance etc sorted. They will be writing up the tenancy contract themselves (to avoid letting agents - and solicitors? fees). I think they are still learning how to let out a property - so they will inevitably miss things out.

They can obtain a decent AST from a LL association or by signing up to LL Law. You should of course, seek your own legal advice before signing any contract: remember that just because a LL inserts a clause into a tenancy agreement it does not mean that it will stand up in court. (Have a look at OFT's guidance on unfair contract terms in tenancy agreements)

You didn't say how their proposed rent figure compared to others locally? Some newbie LLs have an over inflated idea of the rental that they can achieve on the open market, especially when the property has been their own home and they are still emotionally attached to it.