Tenants Giving Notice months into 24 month lease

greent

Hello - my first time here on these boards and I'm looking for some advice, please. - notice has been given 14 months into a 24 month lease

We have a BTL - previously had a tenant in for long time (more than 10 years) They died and we have subsequently had new tenants in from 10th Sep 2016. These tenants wanted a 2 year lease. I used the model tenancy doc from gov.uk. The deposit (held correctly in a deposit scheme) was 6 weeks rent

I awoke this morning to a message sent last last night from one of the joint tenants. They are proposing to move out on Jan 10th as one has health issues and now can't work, so they can't afford it. They have also asked that I have the deposit for December's rent payment (due 10th Dec)

The model tenancy agreement which I used states that they need to give 3 months notice if looking to exit the tenancy agreement before the 2 years ends. That would mean 18th Feb at the earliest (assuming I go from when the message was sent, not read) Exact wording for the tenancy agreement/ break clause is below in post #6

Am I ok in replying to them (I saw no need for an immediate reply, seeing as today is a Sunday) that (sorry about health etc) as the tenancy agreement is for 2 years, the minimum notice period stated in it is 3 months, so therefore that would be 18th Feb 2018. Also, the deposit is a different issue and rent is therefore payable for the period up to and including 18th Feb, at the amount stated in the tenancy agreement (£530 pcm) Should they choose to leave the premises before this date and we are able to let it before 18th Feb, I would of course refund them any money.

They have (badly) wallpapered in 3 rooms which will need to be removed and re-painted, so it's not a case of they can move out and someone move straight back in.

Can I also start marketing it straight off, with a view to it being available from 18th Feb - possibly earlier, subject to discussion with current tenants?

I don't want to be mean to current tenants - but they chose a 2 year tenancy agreement and this is the first I've heard of a problem. We also have a mortgage to pay on it and my husband is without a contract of employment from 15th Dec (not their problem, I know - but I may be more inclined to be more sympathetic if we had known money coming in after 4 weeks time)

(They moved into a fully redecorated, new wiring and fuseboard etc, total new kitchen and appliances, new flooring throughout and a bathroom which is only c 4 years old )

HampshireH

The extra month will also give them enough time to restore the decor to the way it was when they moved in

00ec25

please quote on here the EXACT wording used in YOUR tenancy agreement which you think gives your tenants a break clause

you want advice you need to be absolutely exact with your info not "they need to give 3 months". Without the full context no one can say what that means

you are both correct and wise re the refusing to allow the deposit to be used to cover the final rent.

you are less correct regarding the costs of re-wallpapering as the deposit cannot be deducted on a new for old basis. Some allowance must be made for betterment since it is no longer new.

Should they choose to leave the premises before this date and we are able to let it before 18th Feb, I would of course refund them any money.

you cannot have it both ways:
- Either you require them to adhere to the terms of the break clause
- Or you offer them mutually agreeable terms for surrendering the lease.

You cannot hedge your bets by waiting to see what comes first.

greent

00ec25 wrote: »

please quote on here the EXACT wording used in YOUR tenancy agreement which you think gives your tenants a break clause

you want advice you need to be absolutely exact with your info not "they need to give 3 months". Without the full context no one can say what that means

you are both correct and wise re the refusing to allow the deposit to be used to cover the final rent.

you are less correct regarding the costs of re-wallpapering as the deposit cannot be deducted on a new for old basis. Some allowance must be made for betterment since it is no longer new.

I will copy the wording in now - I did wonder whether I should have


I am not looking for anything for the cost of removing the wallpaper/ painting (I already have the paint) - it was more the fact that time would be needed to remove it/ re-paint (which I was looking at doing) in between tenancies (it's rather bold wallpaper in one room and just very badly hung in the other 2)

greent

00ec25 wrote: »

you cannot have it both ways:
- Either you require them to adhere to the terms of the break clause
- Or you offer them mutually agreeable terms for surrendering the lease.

You cannot hedge your bets by waiting to see what comes first.

Ah - I wasn't meaning it on a hedge my bets basis, sorry. In the first choice I would like them to adhere to the break clause. I think they will choose to leave early from the health situation - they need someone to be with them, so are looking at moving back to parents. If they left early and we managed to re-let it I thought I could then refund them for the period of any technical overlap. If it is a case that I need them to adhere to the date of 18th Feb, then I would go for this date and look to re-let after then.

greent

Taken straight from the tenancy agreement

Section F: Break clauses for tenancies over two years

Guidance Note: The break clauses contained in this section of the agreement have been drafted so that they only apply where the agreement is for two or more years. While this agreement has been developed to provide greater stability with a longer fixed term, there will be situations in which the tenant or landlord may need to end the tenancy early to take account of unexpected changes in their circumstances. This section of the agreement sets out the circumstances in which either the tenant or the landlord may bring the tenancy to an end early (i.e. before the end of the fixed term). Landlords should be aware that tenants cannot, in any circumstances, be evicted without a court order and that eviction without a court order is a criminal offence

1 APPLICABILITY OF CLAUSES F2 TO F5
1.1 The break clauses contained in clauses F2, F3, F4 and F5 shall only have effect where the fixed term which has been agreed between the Landlord and Tenant (as specified in clause B4.1) is for two years or more. Accordingly, clauses F2, F3, F4 and F5 shall be of no effect where the term which has been agreed is for less than 2 years.

2 TENANT’S ROLLING 3 MONTH BREAK CLAUSE
2.1 Subject to clause F2.2, the Tenant may end this Tenancy before the Tenancy end date specified in clause B4.1 by giving the Landlord at least 3 months’ notice in writing.
2.2 The Tenant cannot give notice under clause F2.1 within the first 3 months of the Tenancy.

Guidance Note: Tenant’s break clause
Clause F2 provides that the tenant may give the landlord 3 months’ notice in writing to end the tenancy early. The tenant cannot give notice during the first 3 months of the tenancy which means that the earliest a tenant will be able to end the tenancy is after the first 6 months of the term.
This break clause reflects that the circumstances of a tenant might change unexpectedly, for example, because he or she has to move out of the area for employment reasons and that it would in such circumstances be inappropriate to compel them to be locked into the agreement for the full term. The three months’ notice requirement gives the landlord sufficient time to find a replacement tenant, whilst at the same time ensuring he continues to receive a rental income



Thank you

greent

Just had a thought after reading around this board - would they also be liable for Council Tax on the property until 18th Feb? (ie the end date of their tenancy under the 3 month break clause?)

G_M

greent wrote: »

Taken straight from the tenancy agreement

Section F: Break clauses for tenancies over two years

notice has been given 14 months into a 24 month lease

What is the exact start and end dates of the tenancy agreement?
From what you say
a) it is not "over two years"
b) therefore the Break Clause is not applicable.

So the tenants cannot givve notice. They can only request an early surrender, which you can choose to

c) refuse, forcing them to remain liable for the full 2 years
d) accept, allowing them to leave on the date they propose
e) accept, allowing them to leave on a date you propose
f) accept, allowing them to leave on an unspcified date when a replacement tenancy commences
g) accept subject to them paying costs you specify eg for marketing etc

or some combination of the above.

edit: they wll be liable for council tax until whatever date the tenancy ends, be that the end of the 2 years, or a date agreed for the Early surrender.

Note: if the tenancy IS "over two years", the above advive does not apply as the Break Clause can be initiated by the tenants.

greent

greent wrote: »

Taken straight from the tenancy agreement

Section F: Break Clauses for tenancies of two years or longer
Section F: Break clauses for tenancies over two years

Guidance Note: The break clauses contained in this section of the agreement have been drafted so that they only apply where the agreement is for two or more years. While this agreement has been developed to provide greater stability with a longer fixed term, there will be situations in which the tenant or landlord may need to end the tenancy early to take account of unexpected changes in their circumstances. This section of the agreement sets out the circumstances in which either the tenant or the landlord may bring the tenancy to an end early (i.e. before the end of the fixed term). Landlords should be aware that tenants cannot, in any circumstances, be evicted without a court order and that eviction without a court order is a criminal offence

G_M wrote: »

What is the exact start and end dates of the tenancy agreement?
From what you say
a) it is not "over two years"
b) therefore the Break Clause is not applicable.

So the tenants cannot givve notice. They can only request an early surrender, which you can choose to

c) refuse, forcing them to remain liable for the full 2 years
d) accept, allowing them to leave on the date they propose
e) accept, allowing them to leave on a date you propose
f) accept, allowing them to leave on an unspcified date when a replacement tenancy commences
g) accept subject to them paying costs you specify eg for marketing etc

or some combination of the above.

edit: they wll be liable for council tax until whatever date the tenancy ends, be that the end of the 2 years, or a date agreed for the Early surrender.

Note: if the tenancy IS "over two years", the above advive does not apply as the Break Clause can be initiated by the tenants.

Thank you for your reply. I missed the very top line of the page off - I have now added that in above in red. The guidance note is the tenancy agreement also states '...where the agreement is for two or more years'

Start date 10/09/2016 } as stated in the tenancy agreement
End date 10/09/2018 }
(I guess that is also technically 2 years and 1 day long? - not sure)


Thank you for your comments - much appreciated

G_M

greent wrote: »

Thank you for your reply. I missed the very top line of the page off - I have now added that in above in red. The guidance note is the tenancy agreement also states '...where the agreement is for two or more years'

Start date 10/09/2016 } as stated in the tenancy agreement
End date 10/09/2018 }
(I guess that is also technically 2 years and 1 day long? - not sure)


Thank you for your comments - much appreciated

That is not 'technically' 2 years and 1 day.

It IS 2 years and 1 day.

I've also just noticed a contradiction in the TA:

Section F: Break clauses for tenancies over two years

Guidance Note: The break clauses contained in this section of the agreement have been drafted so that they only apply where the agreement is for two or more years.

Very poorly worded.

But either way, it seems the Break Clause does apply in this instance.

For future reference, and the benefits of others, I've always had concerns about this model tenancy doc from gov.uk. It is excessively long, and complicated. If used at all, a landlord should read every word and strip out (or amend) every clause that does not apply, or is unwanted.

Simply downloading the whole thing, printing it off, adding a few dates, names and signatures, is not appropriate.

00ec25

ok so it is the Govt's model AST in which case section F clauses apply where the agreement is for two or more years.
"The break clauses contained in clauses F2, F3, F4 and F5 shall only have effect where the fixed term which has been agreed between the Landlord and Tenant (as specified in clause B4.1) is for two years or more. Accordingly, clauses F2, F3, F4 and F5 shall be of no effect where the term which has been agreed is for less than 2 years."

on that basis if your start and end date does indeed give a tenancy agreement of 24 months then the tenant can invoke para F2 (the 3 months break clause). As you state they have been there 14 months already then they are able to start that notice when they want as the only restriction is it cannot be given during the first 3 months of the tenancy, clearly that position is now long gone.

so choose between:
a) the tenant gives notice and they are liable for exactly 3 months
or
b) you agree something else with them, put that mutually agreed "early" surrender in writing, and then both of you stick to it