Tenant want to leave early

Helen231264

My tenant, Scotland, wants to leave early due to family reasons. They signed an AST for one year in October 2015. I am willing to release them early once I find a new tenant. It's a strong market so hopefully won't be too difficult. Can/should I charge them the fees I will incur finding a new tenant?

Pixie5740

I doubt very much that your tenant in Scotland has an AST. They will either have a Short Assured Tenancy or an Assured Tenancy, Assured Shorthold Tenancies are for England & Wales.

theartfullodger

You can agree whatever terms you both agree: You do not have to permit tenant (assuming they have a SaT..) not to pay the rent to the end of the term.

Tenant can leave any time he likes, with or without your permission. But he remains liable for the rent.

Last time I looked SaL had a "mutual agreement to end tenancy" document I suggest you use...

Helen231264

Pixie5740 wrote: »

I doubt very much that your tenant in Scotland has an AST. They will either have a Short Assured Tenancy or an Assured Tenancy, Assured Shorthold Tenancies are for England & Wales.

You're right, it's a Short Assured Tenancy

Hoploz

Surely the fair thing to do would be just charge them what it costs you. So if you incur any additional fees, maybe tenant finding fee from EA? No need to add arbitrary amounts as long as they pay rent until you can get someone else in.

G_M

Hoploz wrote: »

Surely the fair thing to do would be just charge them what it costs you. So if you incur any additional fees, maybe tenant finding fee from EA? No need to add arbitrary amounts as long as they pay rent until you can get someone else in.

Or add on whatever amount you think the tenants might pay.

How long does the SAT have left to run?

How desperate are the 'family reasons'?

How well off are the tenants? Or their family?

You might be able to squeeze another £500, or even £1000, out of them on top of your added costs. If you get that as a cash payment, HMRC would never even know.......

HappyMJ

G_M wrote: »

Or add on whatever amount you think the tenants might pay.

How long does the SAT have left to run?

How desperate are the 'family reasons'?

How well off are the tenants? Or their family?

You might be able to squeeze another £500, or even £1000, out of them on top of your added costs. If you get that as a cash payment, HMRC would never even know.......

tut tut tut...advising tax evasion....HMRC don't know how much rent I get each month.

I fill out a self assessment and I tell them and I include any payments I get for damages and deposit deductions which I would consider this to be. I would also have a corresponding expense to pay which would be the tenant finders fee the agency charges so there is no reason not to declare the income.

I also work for cash in my self employment work. I have to declare everything I get. I could fail to record a few payments here and there to save a bit of tax but morally and legally I do declare everything I get.

Marktheshark

What you can ask for is a kill fee for the rest of the period.
I see you are using an agent so you wont be making any profit at all on the let as even the very best only skim 15% overall on BTL when taken over a 5 year period and the agents get to skim all the profit from your substantial investment with the investment of just a desk and telephone.

I would look at a kill fee and self manage or sell up if you can not, they are far better investments than agent skimmed BTL.

theartfullodger

Marktheshark wrote: »

......I see you are using an agent so you wont be making any profit at all on the let as even the very best only skim 15% overall on BTL when taken over a 5 year period and the agents get to skim all the profit from your substantial investment with the investment of just a desk and telephone.......

Mark: What evidence (preferably reference-able, link available..) do you have for these assertions please??

Helen231264

Marktheshark wrote: »

What you can ask for is a kill fee for the rest of the period.
I see you are using an agent so you wont be making any profit at all on the let as even the very best only skim 15% overall on BTL when taken over a 5 year period and the agents get to skim all the profit from your substantial investment with the investment of just a desk and telephone.

I would look at a kill fee and self manage or sell up if you can not, they are far better investments than agent skimmed BTL.

I only used an agent to find the tenant. As you don't know my mortgage payments vs income you're not in a position to comment on the profitability of my BTL.

G_M

HappyMJ wrote: »

tut tut tut...advising tax evasion....HMRC don't know how much rent I get each month.

I fill out a self assessment and I tell them and I include any payments I get for damages and deposit deductions which I would consider this to be. I would also have a corresponding expense to pay which would be the tenant finders fee the agency charges so there is no reason not to declare the income.

I also work for cash in my self employment work. I have to declare everything I get. I could fail to record a few payments here and there to save a bit of tax but morally and legally I do declare everything I get.

Yeah - really should find a sarcasm emoticom somewhere.......