Tenant wants to break lease - any pitfalls?

Weird_Nev

Hi all,

We're new to this "landlording" game. We moved overseas 6 months ago and let out our home in the UK with a local estate agent.

After 6 months of hearing nothing but the rent being paid each month on time (via letting agents) they have forwarded us an email from the tenant pleading that she wants to break her lease early. She says this is because her children can't get into the good school nearby and would have to go to the not-so-good school - though I suppose her reasons are of little consequence.

Obviously this is a bit of a shock being as we thought we had the place let out for 12 months. However, I see no value in compounding her misery by forcing her to see out the tenancy agreement.

So all I want to know is what pitfalls may await us? The tenant will apparently be liable for the reletting fees - new agreement, inventory and stuff, and any old period between her leaving and a new tenant taking occupation.

Letting agent seems unfussed and states they do not foresee any issues re-letting the house quickly at the market rate.

My biggest fear is that this is all puff, and the house will now sit empty for months with us having to cover our own mortgage, but is there anything else as a landlord I should be aware of/taking action on?

theartfullodger

Have you completed the paperwork & received certification from HMRC as a non-resident landlord??

What training in landlord/tenant law have you done??

Weird_Nev

theartfullodger wrote: »

Have you completed the paperwork & received certification from HMRC as a non-resident landlord??

Yes.

theartfullodger wrote: »

What training in landlord/tenant law have you done??

None, hence why I pay fees for an estate agent local to the house to manage it for me.

Anyone?

RAS

Is the deposit registered with a scheme? Wa the prescribed information sent to the tenant within 30 days?

Gas Certificate

That is assuming England and Wales?

mr-bob_2

If the tennant wants to move out, they can. But they'll still need to pay off the rest of the contract.

So, yeah - if they want to pay rent until a new tennant moves in as well as the other assosiated costs then so be it - better than having a tennant that doesn't want to live there I guess.

And that is why the letting agent isn't bothered either way either. It's pretty standard if they want to surrender early to do that.

It could of course sit empty for longer than the tenancy period and that'd then come out of your pocket - but you'd have that problem at the end of their tenancy anyway if that was the case.

Weird_Nev

RAS wrote: »

Is the deposit registered with a scheme? Wa the prescribed information sent to the tenant within 30 days?

Gas Certificate

That is assuming England and Wales?

What does any of this have to do with my initial question?

The house is let fully within the bounds and spirit of UK law, as managed by an experienced and professional property letting agent with considerable experience.

mr-bob wrote: »

If the tennant wants to move out, they can. But they'll still need to pay off the rest of the contract.

So, yeah - if they want to pay rent until a new tennant moves in as well as the other assosiated costs then so be it - better than having a tennant that doesn't want to live there I guess.

Hmmm, From what the letting agent said it sounded more like they give notice and move out, and are only liable for rent until the date of quitting.
I think I need to clarify that.

RAS

Weird_Nev wrote: »

What does any of this have to do with my initial question?

Because if the deposit is not registered in an approved scheme and the prescribed information is was not given in a timely manner YOU can be sued for three times the deposit. If the tenant finds out they will use this to lever you into accepting an early release.

The house is let fully within the bounds and spirit of UK law, as managed by an experienced and professional property letting agent with considerable experience.

And.............? Experienced and professional property letting agents frequently turn up here with less idea of the law than the local housing advice centre.

Hmmm, From what the letting agent said it sounded more like they give notice and move out, and are only liable for rent until the date of quitting.
I think I need to clarify that.

By statute, a fixed term contract requires the tenant to pay rent until the end of the contract whether or not they are resident. If your experienced and professional property letting agent with considerable experience do not know this, you may want to find someone who knows the basic statute law?

G_M

Is there a break clause in th tenancy agreement? If so, what is the wording? The tenant can give notice in compliance of that clause.

If there is NO break clause, then the tenant is legally obliged to pay rent and comply with the TA untill it expires - 12 months.

Unless you agree otherwise. Any terms you impose for that ageement are up to you, but you should ensure
a) that your agent understands those terms so put them in writing clearly to the agent and
b) that the tenant understands the terms, so again, get them agreed in writing (plus signature!)

Fairly common terms in this scenario would be:

* tenant to pay (an amount) for re-marketing the property (eg your new agency fee to find new tenant)
* tenancy to continue (with tenant paying rent) until date new tenancy starts - so no gap in rent for you. Only then will the existing tenancy end (via an Early Surrender).

edit: you say:

The tenant will apparently be liable for the reletting fees - new agreement, inventory and stuff...

remember YOU are the landlord. It is up to YOU to decide what terms you wish to impose in return for agreeing to the tenant's request for an Early Surrender of the tenancy.

The agent is..... just an agent actimg for you. They do what you say. OK, they can advise, but they work for you and ultimately must do as you instruct.

If you wish tolet the tenant leave, immediately, without conditions - fine, your decision. Tell the agent.

If you wish to refuse any Early Surrender at all - again.Your decision.

Fire_Fox

Weird_Nev wrote: »

Yes.


None, hence why I pay fees for an estate agent local to the house to manage it for me.

Anyone?

You cannot delegate your legal responsibilities to a letting agent, ultimately the buck stops with you.

sussexchick

Weird_Nev wrote: »

I see no value in compounding her misery by forcing her to see out the tenancy agreement.

Good grief ! - what a kind, considerate and humane person you are. Unlike my miserable, spiteful and Rigsby-esq LL who does not possess a single 'nice' bone in his wretched body.

For the past week I have eaten nothing more than jam sandwiches but guess what folks, his rent has been paid on time !
Lets hope he's choked on his t-bone steaks !

(sorry for the rant and for the hi-jacking of your thread)

SternMusik

sussexchick wrote: »

Good grief ! - what a kind, considerate and humane person you are. Unlike my miserable, spiteful and Rigsby-esq LL who does not possess a single 'nice' bone in his wretched body.

For the past week I have eaten nothing more than jam sandwiches but guess what folks, his rent has been paid on time !
Lets hope he's choked on his t-bone steaks !

(sorry for the rant and for the hi-jacking of your thread)

Hi sussexchick, I was wondering how you have been getting on Have you found a replacement tenant for your old place?