Tenancy issue - legal advice

DAE

I wasn't really sure where to put this thread, as it's a mixture of issues (tenancy, and bills dispute), but thought as it concerns a rental property, this may be best place,

I'm in a bit of a pickle with an old property I used to live at.

It was a shared 4 bedroom flat. A lot of the bills were in my name so when I moved out I tried to do everything by the book. I cancelled most things without problem (phone, internet etc.).

I asked for a final Utility bill from our supplier, telling them I was moving out, which they provided and I paid.

I called council tax, told them I was moving out, asked for a final bill, and paid it.

Now the problem arose with the replacement tenant. At first he seemed like a good replacement, had a decent and scrupulous job (teacher), and no reason why he wouldn't comply with procedure. I informed the letting agent I was moving out, and that he would be in soon to sign the formalities (he'd given me every assurance). So I felt content to move out and into my new property.

I'd moved out and expected he would complete these formalities without fuss. He'd paid me my £750 deposit in cash, so seemed strange he wouldn't then secure himself on the property at the agency. Long story short, he didn't. He did turn up at the letting agency offices once, but hadn't brought the correct documentation with him. I sent numerous texts and tried to call him multiple times imploring him to do it but he didn't.

Anyway, all the guys still living there on the lease and this new guy continued to pay their rent so the landlord continued receiving money from them. Then 8 months later, they were all turfed out of the flat for pretty much ruining it. The landlord sent me this guy's deposit as I was on the tenancy, though of the original £740, only about £400 was left after deductions.

The problem now, is that whilst they were paying rent, they were not paying their council tax, or indeed their utilities.

So I am now being pursued by both the council for unpaid council tax, and have now received a solicitors letter on behalf of SSE Southern Electric for unpaid utilities, amounting to £1083.42.

I just don't really know what to do. I was not living in the property for the time in question. The unpaid utility bill on the solicitors letter for instance is dated 15/08/2014 - 14/02/2015. Starting exactly the date I asked for a final bill!

I don't really know where to turn. I tried to do everything by the book, make sure I got final bills and paid everything to close my name off the flat, but that doesn't seem to have been enough. I can't go to the tenants who were there at the time as my relationship with all but one of them has broken down. The landlord knows I had vacated the property, and that I had tried to arrange my replacement, but in tenancy terms, I was on the lease until the removal (14/02/2015). So it's unlikely they'll give anything to help me.

It's all a bit worrying, and I know that I shouldn't have just let my replacement get away with not following the substitution procedure. I guess at the time I hoped that because I'd asked for and paid for final bills, so long as they paid rent, it wouldn't come back to hurt me. They were paying rent so I let it roll on. Naive.

Anyway, does anyone have any advice on what I should do? I was thinking of contacting Shelter. I think it's kind of shoddy that you can inform all parties (council, utilities especially) that you're leaving and request and pay final bills, but they then just chase you when the remaining tenants don't bother paying. It seems I've screwed myself by always having my name against things whilst I was in the property.

I've also been legally paying council tax (in a different borough) and utilities since moving out. The last thing I am is a bill shirker. I've always tried to do it by the book. Have I got enough here to defend myself against this or am I screwed? What should I do?

G_M

First of all, you were remiss when you left.

* you should have had nothing to do with your replacement 'tenant', with whom you have no contract. He should not have given you his deposit. He was not your responsibility. These informal arrangements between incoming/outgoing sharers are fraught with legal dangers - as you've found.

* you should have surrendered your tenancy. And received your deposit back, at that time, from the landlord (or his agent), with whom you DID have a contract (I assume).

1) when did you move out?
2) did the LL/agent know?
3) have you any evidence that he knew?
4) did the LL/agent give any indication (ideally written) that they accepted your surrender of the tenancy at that time?
5) did you have a sole contract with the landlord (ie each of the 4 of you signed separate agreements)? Or was there a single "joint & several" agreement with all 4 names on it?

You said you:

asked for a final Utility bill from our supplier, telling them I was moving out, which they provided and I paid.

I called council tax, told them I was moving out, asked for a final bill, and paid it.

* Have you written to them, with a copy of your letter at the time (or referencing the date/time of your phone call) pointing out you settled your final account on x date? and giving the name(s) of the occupants thereafter?
* Have you written to say you have not been in occupation since X date and therefore have no liability for CT? Or utilities? And enclosed copies of your billd for CT/bills at present home?

I'm about 90% sure that

* your failure to end the tenancy properly might make you vulnerable to claims by the landlord (eg for rent arrears, damage etc)
* but the fact that you were not living there, AND had written at the time for final bills, would NOT make you liable for the CT or utilities

so if this goes as far as court, that is the defence you should enter.

Meanwhile, ensure that is made clear to the claimants, and hopefully they will transfer their claims to the actual occupants

DAE

G_M wrote: »

First of all, you were remiss when you left.

* you should have had nothing to do with your replacement 'tenant', with whom you have no contract. He should not have given you his deposit. He was not your responsibility. These informal arrangements between incoming/outgoing sharers are fraught with legal dangers - as you've found.

* you should have surrendered your tenancy. And received your deposit back, at that time, from the landlord (or his agent), with whom you DID have a contract (I assume).

1) when did you move out?
2) did the LL/agent know?
3) have you any evidence that he knew?
4) did the LL/agent give any indication (ideally written) that they accepted your surrender of the tenancy at that time?
5) did you have a sole contract with the landlord (ie each of the 4 of you signed separate agreements)? Or was there a single "joint & several" agreement with all 4 names on it?

You said you:
* Have you written to them, with a copy of your letter at the time (or referencing the date/time of your phone call) pointing out you settled your final account on x date? and giving the name(s) of the occupants thereafter?
* Have you written to say you have not been in occupation since X date and therefore have no liability for CT? Or utilities? And enclosed copies of your billd for CT/bills at present home?

I'm about 90% sure that

* your failure to end the tenancy properly might make you vulnerable to claims by the landlord (eg for rent arrears, damage etc)
* but the fact that you were not living there, AND had written at the time for final bills, would NOT make you liable for the CT or utilities

so if this goes as far as court, that is the defence you should enter.

Meanwhile, ensure that is made clear to the claimants, and hopefully they will transfer their claims to the actual occupants

Thanks for your detailed reply.

Yes, I know I was naive in my dealings with the replacement. I'd lived in that property for 4 years and this was always how we did things. The replacement would pay deposit directly to the tenant moving out, and would provide paperwork at the letting agency to complete the substitution. Unfortunately, not in this case. I've learnt my lesson, trust me.

(1) I moved out on September 1st.
(2) I have email documentation of me letting the Letting Agent know I was moving out. Though obviously this does not mean a severance in contract.
(3) The letting agency were aware I had left the property. I have communication with them telling me my replacement failed to produce the correct documentation. I told them I would chase him, which I did.
(4) There is no written documentation of the landlord accepting the surrender of my tenancy.
(5) It was a single joint and several agreement, not individual.


I have been in email communication with the council to tell them when I moved out. They have on their records that I called and asked them for a final bill and that this was paid (I have an email from them stating that this was the case, they are fully aware this happened). This doesn't seem to matter to them as far as pursuing me though. I've asked them what attempts they've made to contact the other tenants, but have received no information from them. I suspect they're only going after me as they have a direct line of communication with me through email.

The electricity company, I haven't been in communication with them until receiving the solicitors letter today. I tried calling them (the electricity company) this evening but needed a customer reference which I no longer have. Again, they will have on their records that I called and asked for a final bill, and this was paid in full. I will look for documentation which might help me here. I called the solicitors, they have frozen the case for 14 days whilst I try to sort it out. But they said they'll probably need a proof of end of tenancy. So you can see my pickle.

There will be no claims from the landlord for rent arrears or damage. This has already been settled. Rent was paid in full by one of the remaining tenants who would've collected from the others. So I don't see a problem there.

The sole issue is CT and ultilies. I'm hoping you are correct that I perhaps won't be liable for these, but obviously I will need to fight this.

Would you suggest that I contact Shelter/solicitor, or should I just keep communication with the claimants at this stage?

Poppie68

The solicitors letter should have the utility customer ref number on it?

G_M

DAE wrote: »

(1) I moved out on September 1st. 2015?
(2) I have email documentation of me letting the Letting Agent know I was moving out. Though obviously this does not mean a severance in contract. good
(3) The letting agency were aware I had left the property. I have communication with them telling me my replacement failed to produce the correct documentation. I told them I would chase him, which I did.
what exactly did the agent say? In each email they sent?
(4) There is no written documentation of the landlord accepting the surrender of my tenancy.
see 3) above - there could be an implied acceptance
(5) It was a single joint and several agreement, not individual.
then the process should be either
* to end the tenancy for all 4 tenants, and create a new one for the new group of 4, or
* a Deed of Variation to the existing tenncy, substituting 1 name for another, and signed by all 4 + the LL (or agent)


I have been in email communication with the council to tell them when I moved out.
stop emailing. Write a letter. Short concise, with dates and references. And deny liability since Sept 1st 201x.

..... (I have an email from them stating that this was the case, they are fully aware this happened).
enclose a print-out with your letter
.....I suspect they're only going after me as they have a direct line of communication with me through email.
Do they have your current address?

The electricity company, I haven't been in communication with them until receiving the solicitors letter today. I tried calling them (the electricity company) this evening but needed a customer reference which I no longer have.
Do not call. Write - as above.
..... I called the solicitors, they have frozen the case for 14 days whilst I try to sort it out.
good
But they said they'll probably need a proof of end of tenancy. So you can see my pickle.
have you spoken to LL or agent? will they assist?

Would you suggest that I contact Shelter/solicitor, or should I just keep communication with the claimants at this stage?

Contacting Shelter etc will certainly do no harm, but meanwhile get some letters in the post. solicitors have given you only 14 days, so use that time productively.

Do you have Legal cover included with your home insurance?
Does your trade union/employer provide legal advice/legal cover?

Also just noticed:

He'd paid me my £750 deposit in cash,...

The landlord sent me this guy's deposit as I was on the tenancy, though of the original £740, only about £400 was left

so at least you are £400 up

(though that is just another example of why this type of hand-over is such a bad idea)

DAE

G_M wrote: »

Contacting Shelter etc will certainly do no harm, but meanwhile get some letters in the post. solicitors have given you only 14 days, so use that time productively.

Do you have Legal cover included with your home insurance?
Does your trade union/employer provide legal advice/legal cover?

Also just noticed:

so at least you are £400 up

(though that is just another example of why this type of hand-over is such a bad idea)

(1) Moved out September 1st 2014.

(3) & (4) I emailed the letting agent saying I was moving out and gave moving out date of August 31st 2014. They emailed back so acknowledged this and gave me a list of things the replacement needed to provide, which I forwarded to him. I'd asked for a landlord reference and was given a contact email to use for one. (I provided this to my new agency though I have no idea if they actually got a reference from them in the end).

Some weeks later I received an email from the letting agency's finance department asking why I had cancelled my standing order (I was also responsible for rent payments). Again, I told them I had moved out (and reminded them I had informed them of this), and copied in one of the remaining tenants who had agreed to take on duty of paying rent. I assume he set this up with them himself.

Then followed some communication from the lettings manager who let me know my replacement had failed to provide proper paperwork. I gave them his email. THEY then emailed him directly, copying me, this is veratim what they said.

Hi X,

I understand that you have already moved into the above property but this shouldn’t have actually happened until we had received the referencing - see below and confirmed that you are a suitable replacement.

Therefore please can you send me the referencing asap so I can confirm that this is all okay. Also there is a substitution of tenancy fee of £150 + VAT = £180 that will need to be paid and you will need to sign the current renewal document but this can all be dealt with once I have received your references and confirmed that you are a suitable replacement as currently we still have David on the tenancy and on the tenancy deposit scheme.

If you wish to come into the office, then please let me know what day and time this will be so I can ensure either myself or one of my colleagues is available to meet with you.

He then replied saying he would be in on Monday. Though he didn't bother. I think it's fairly clear they understood I had left, even going as far to directly contact my replacement asking him for documentation.

(5) I may be getting confused on this. What would the difference be if it was individual? What tended to happen was the replacement would go in, strike the exiting tenant's name off manually (literally draw a line through) and sign themselves. No one else had to sign except during renewal.

I take your point on the letters. I'll stop emailing and phoning and start writing.

Council Tax don't have my current address. They only have my work email address, which is our only channel of communication. How does this affect things?

I am not sure how the Solicitors on behalf of the utility company have got my address though. Is there a way they could have obtained it? That does worry me somewhat.

I have not yet spoken to LL or agent. I suspect they won't help, as although they knew I had left the property, because I was on the lease, it will end there for them. Should I send them a letter too?

Will have to check on legal advice entitlement.

Thanks again.

G_M

Sadly the agency appears to be very unprofessional, which has not helped you.

You still have not answered Q 5. Pretty easy. How many names were listed as 'tenant' on the agreement you signed? One (yours only)? or 4 (all the occupants)?

If it was 4 as I suspect, then the agent cannot alter the contract in the way you describe. As I explained earlier

* to end the tenancy for all 4 tenants, and create a new one for the new group of 4, or
* a Deed of Variation to the existing tenncy, substituting 1 name for another, and signed by all 4 + the LL (or agent)

Either way, ALL tenants must agree. A contract involving 5 people cannot be changed by just one or two of them.

Also if it was 4, then all 4 are equally liable for the Council Tax (see below).

If it was just you on the contract, then this is probobly a HMO (4 separate tenancies) in which case the landlord is liable for CT.

Furthermore, getting a tenant to find a replacement is unprofessional. As their email shows, the new tenant must be vetted/approved, & the agency should not be delegating any part of the process to you

However, their email appears to show that
* they have not accepted the replacement since he has not been vetted/referenced
* so the replacement is not a tenant
* so he must be a licencee/Excluded Occupier, granted permission to stay/live there by the other(3) occupants - probobly as their lodger
* so your tenancy was never ended

(subject to the wording of any other comunications - I did ask for "exact wording"!)

Having said that, it may not affect either of these claims.

Claim 1 is Council Tax:
* if HMO, landlord is liable, so answer question 5! (I don't ask Qs just to amuse myself)
* if a single 'joint & several' tenancy then
a) all 4 tenants are eually liable, so get the other 3 included on any claim
b) deny your own liability based on non-residency

There is a hirarchy for CT liability:

• A resident who owns the freehold (n/a)
• A resident who owns the leasehold (n/a)
• A resident who is an assured tenant or is a statutory or secure tenant (n/a to you if you can show non residency)/ Applies to the other 3 IF a single tenancy
  
• A resident who is a licensee. This means that they are not a tenant but have permission to stay there (n/a)
• Any resident, for example, a squatter (n/a)
• An owner of the property who does not live there (n/a)

There are some properties where the owner, rather than the residents, will be responsible for payment. The hierarchy does not apply to these properties. These properties are:

• Houses in multiple occupation, that is where the residents do not form a single household and pay their rent separately for different parts of the property. The tenants will usually have separate tenancy agreements. may apply IF separate tenancies
• Residential care or nursing homes,........ etc

Claim 2 is the utilities
The claim is based on contract law. You had a contract with SSE under which
a) they agreed to supply gas/electricity and in return
b) you agreed to pay for it

In sept 2014, you cancelled that contract. Therefore you do not need to pay.

DAE

G_M wrote: »

Sadly the agency appears to be very unprofessional, which has not helped you.

You still have not answered Q 5. Pretty easy. How many names were listed as 'tenant' on the agreement you signed? One (yours only)? or 4 (all the occupants)?

If it was 4 as I suspect, then the agent cannot alter the contract in the way you describe. As I explained earlier
Either way, ALL tenants must agree. A contract involving 5 people cannot be changed by just one or two of them.

Also if it was 4, then all 4 are equally liable for the Council Tax (see below).

If it was just you on the contract, then this is probobly a HMO (4 separate tenancies) in which case the landlord is liable for CT.

Furthermore, getting a tenant to find a replacement is unprofessional. As their email shows, the new tenant must be vetted/approved, & the agency should not be delegating any part of the process to you

However, their email appears to show that
* they have not accepted the replacement since he has not been vetted/referenced
* so the replacement is not a tenant
* so he must be a licencee/Excluded Occupier, granted permission to stay/live there by the other(3) occupants - probobly as their lodger
* so your tenancy was never ended

(subject to the wording of any other comunications - I did ask for "exact wording"!)

Having said that, it may not affect either of these claims.

Claim 1 is Council Tax:
* if HMO, landlord is liable, so answer question 5! (I don't ask Qs just to amuse myself)
* if a single 'joint & several' tenancy then
a) all 4 tenants are eually liable, so get the other 3 included on any claim
b) deny your own liability based on non-residency

There is a hirarchy for CT liability:
Claim 2 is the utilities
The claim is based on contract law. You had a contract with SSE under which
a) they agreed to supply gas/electricity and in return
b) you agreed to pay for it

In sept 2014, you cancelled that contract. Therefore you do not need to pay.

Apologies for my ambiguity on question 5!

Ok, 4 names were on the tenancy agreement, not just mine.

These 4 names (as well as bizarrely 3 other previous tenants from c. 2011-2013) have been given to the Council by the agency.

So the council are aware that we are all jointly liable. They have listed 7 names as jointly liable. Even this seems wrong. It should be four. My name is one of them but as you say, I have fair argument that I had vacated the property but was let down by an unscrupulous replacement.

G_M

DAE wrote: »

These 4 names (as well as bizarrely 3 other previous tenants from c. 2011-2013) have been given to the Council by the agency.

So the council are aware that we are all jointly liable. They have listed 7 names as jointly liable. Even this seems wrong. It should be four. My name is one of them but as you say, I have fair argument that I had vacated the property but was let down by an unscrupulous replacement.

So

I have been in email communication with the council to tell them when I moved out.
stop emailing. Write a letter. Short concise, with dates and references. And deny liability since Sept 1st 201x.

..... (I have an email from them stating that this was the case, they are fully aware this happened).
enclose a print-out with your letter
.....I suspect they're only going after me as they have a direct line of communication with me through email.

They have a 'direct line' with at least 3 of the others via the property address.

Talking of which, I would not include your new address on any letter. And certainly don't use the property address, as that would imply you are still a 'resident'.........

DAE

G_M wrote: »

So

They have a 'direct line' with at least 3 of the others via the property address.

Talking of which, I would not include your new address on any letter. And certainly don't use the property address, as that would imply you are still a 'resident'.........

If I write a letter, how are they going to respond if I don't include my address?

Should I use my work address or something?

They no longer have a direct line to the other 3, as all have been removed from the flat as of 14th February 2015.

No doubt they were bombarded with letters until that point and probably just ignored them.

Winter_Phoenix

G_M has given you excellent advice, but I would disagree on one minor point.

I would write the Council a short letter (you are very articulate, but also rather wordy!) from your present address, to this effect:

Dear Sirs

I moved out of (1 High Street) on 1st September 2014, and as your records will show, paid the final council tax bill up to that date. I attach a print-out of an e-mail received from you at that time.

I have lived at (1 Acacia Avenue, Hightown) since then, and in confirmation of this fact I attach a photocopy of my council tax bill for this address.

I do not have contact details for anyone who lived at (1 High Street) after my departure, but the owner/landlord of the premises is or was (Mr J Smith, 2 High Street).

Yours faithfully

D.A.E.

Write something very similar to SSE and any other utility companies who contact you demanding money. And avoid lengthy explanations - it only confuses the issue.