Questions of soon to be tenant

grubby23

Hi all,

I am about to rent out a studio flat and I would appreciate your help in a couple of things.

1) Apparently I need to sign a minimum contract of 6 months. I am just wondering whether there is a way to get out of this contract before this period, ie., in case of relocation for a new job. Lets assume that I want to move on after 4 months and I find a suitable tenant to replace me, could this be helpful to terminate the contract earlier?

2) TV license, the same as above, I do not want to pay for 12 months when I am just staying a few months, can I get a refund for the extra months?

3) Do I need any insurance cover, ie., for the place burning down, or is this covered by the landlord.

Many thanks for your help!

CKhalvashi

grubby23 wrote: »

Hi all,

I am about to rent out a studio flat and I would appreciate your help in a couple of things.

1) Apparently I need to sign a minimum contract of 6 months. I am just wondering whether there is a way to get out of this contract before this period, ie., in case of relocation for a new job. Lets assume that I want to move on after 4 months and I find a suitable tenant to replace me, could this be helpful to terminate the contract earlier?

2) TV license, the same as above, I do not want to pay for 12 months when I am just staying a few months, can I get a refund for the extra months?

3) Do I need any insurance cover, ie., for the place burning down, or is this covered by the landlord.

Many thanks for your help!

Is it your property or are you renting from a BTL’er?

The 6 months is a standard thing across many agencies. I even do it when I’m letting my own property with my own contracts. This is so that I know the mortgage is being paid.

With regard to sub-letting, I specifically prohibit this, however if you are renting from an agency and THEY can find someone else, you may get away with it.

One Agent I have used in the past have specifically guaranteed rent for a slightly higher payment, in case of this happening, then the ingoing tenant being unable/refusing to pay.

TV License, you will have to pay the full 12 months. Don’t quote me on this, but I think it goes with you when you leave. We have only moved house at about the same time as it’s due, so haven’t bothered to check.

The LL should have Buildings insurance, but it’s up to you to insure your contents. Speak to your individual LL for further info on this, as it’s not the same across the board.

I hope this helps somewhat

CK

grubby23

Thanks for your answer. I guess I will talk to them again and see if they would potentially cancel the contract earlier if the can find suitable replacement during the 6 month period. It makes absolute sense that I have to pay the rent for 6 months if no replacement can be found, but otherwise it should not make too much of a difference for the landlord who is paying the rent.

HappyMJ

Re: the TV License. You can pay quarterly in advance for a small fee. That will pay for 3 months at a time and you can cancel any time without any penalty (apart from losing the rest of the paid quarter). You can also take any license with you wherever you go if you inform TV Licensing of your new address.

6 months is normal shortest tenancy. You could introduce a new tenant to the agency and they will sign them up when you leave and may let you leave early if you pay fees to the agent but you really should budget for paying 6 months rent.

You don't need insurance for "the place burning down" but you should get cover for your own belongings if you think they are worth insuring.

Mrs_Z

Hi,

in answer to your questions

1) your tenancy would normally be either a 6 or 12 fixed to start with. If it is 12 months, make sure you have a 6 months break clause so that you can terminate at this point if you wish. You will be liable to pay for the full period even if you move out earlier (unless you execute the break clause).

2) TV licence - your responsibility. I need to renew mine and they seem to offer also a monthly option:

"You'll usually pay for your first licence within six months, in instalments of around £24 per month. (If we have to spread the cost into four or five monthly instalments, the cost may be slightly higher). From then on, you pay for your licences in 12 monthly instalments of just over £12 - six before your licence is due and six after.
Just one of the ways to help make paying more convenient at no extra cost."


3) Insurance - your landlord should insure the flat but you need to insure your belonings.

grubby23

Next Silly question: If I move to a different place within the 6 months, but the landlord asks me to pay rent for the minimum of the 6 months, do I need then to pay council tax for both places or just for the new one to which I am moving?

tbs624

CKhalvashi wrote: »

The 6 months is a standard thing across many agencies. I even do it when I’m letting my own property with my own contracts. This is so that I know the mortgage is being paid.

The main reason an AST is set at 6 months in the first instance is that although an AST can be for a shorter period, a LL cannot seek repossession before 6 months.

CKhalvashi wrote: »

With regard to sub-letting, I specifically prohibit this, however if you are renting from an agency and THEY can find someone else, you may get away with it.

I didnt read the OP's query as referring to subletting - many LLs will happily accept a replacement T found by the current one who wants to leave early, provided that the new T meets the LLs criteria and any costs incurred by the LL are covered by the outgoing T.

tbs624

grubby23 wrote: »

Next Silly question: If I move to a different place within the 6 months, but the landlord asks me to pay rent for the minimum of the 6 months, do I need then to pay council tax for both places or just for the new one to which I am moving?

Probably full CT at new place and poss 2nd home rate on the old rental property until tenancy formally ends ( if TA makes you responsible for CT there and property does not qualify for unfurnished and unoccupied discount).

G_M

grubby23 wrote: »

1) Apparently I need to sign a minimum contract of 6 months. I am just wondering whether there is a way to get out of this contract before this period, ie., in case of relocation for a new job. Lets assume that I want to move on after 4 months and I find a suitable tenant to replace me, could this be helpful to terminate the contract earlier?
If the LL agrees, he can offwr you a 3 month tenancy - or any period. However, few LLs will do this as
a) it is expensive to keep changing tenants and
b) the law prevents a LL getting possession within the 1st 6 months - so in a 3 month tenancy, the tenant can leave after 3 months but if they stay the LL can do nothing. So most LLs go for the min 6 month option which makes the arrangement more equal.

Having said that, if you want to leave early, you can always do so with the LL's consent. So it is down to negotiation, and offering to cover the LL's costs (finding new tenant etc)

2) TV license, the same as above, I do not want to pay for 12 months when I am just staying a few months, can I get a refund for the extra months?
A licence is transferable - you can take it to your next home.

3) Do I need any insurance cover, ie., for the place burning down, or is this covered by the landlord.
The building should be insured by the LL. Not your responsibility. You may choose to insure your own property (contents insurance)

Many thanks for your help!

Hope this helps.