Tenants Giving Notice months into 24 month lease

G_M

Returning to your original query:

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)

1) Message? Delivered how? this sounds like a text.

What does the tenancy agreement say in section H, clauses 1.83 & 1.84 (page 33)?

1.83[FONT=Arial, serif] The Landlord agrees that any notices given under or in connection with this agreement which are required to be given in writing may be served on the Landlord either by being left at the address given below or by being sent to that address by first class post. Notices shall be taken to be received the day after being left at the property or the day after posting.[/FONT]

The address for service of written notices and other documents on the Landlord is: (insert address and where this is the landlord’s agent’s address, the name of the agent)

Service of written notices by email
1.84[FONT=Arial, serif] The Landlord does / does not ([/FONT][FONT=Arial, serif]delete as appropriate[/FONT][FONT=Arial, serif]) agree that any notices given under or in connection with this agreement which are required to be given in writing may, alternatively, be sent by email. Notices sent by email shall be taken to be received the day after being sent. The Landlord’s / agent’s ([/FONT][FONT=Arial, serif]delete as appropriate[/FONT][FONT=Arial, serif]) email address for these purposes is: ([/FONT][FONT=Arial, serif]insert landlord’s or agent’s email address if landlord wishes to agree to service by email[/FONT][FONT=Arial, serif]).[/FONT]

a) If the message does not comply with whatever 1.83 (or 1.84 if applicable) says, then notice has not been served.

b) Even if it does comply with the notice requirements regarding service, it clearly does NOT comply with the 3 months required by the Break Clause (which will be around 18 Feb 2018 depending on precise date of service). You could therefore reject it completely, or if you wish, agree to a Feb date. (or see below).

2) I would make clear to them that non payment of decembers rent (and Jan etc) is NOT acceptable. The deposit is NOT the last month's rent.

3) Having said the above, there is still always the option of Early Surrender. Given their health situation, and given rent arrears may start arising, you may wish to ignore the Break Clause requirements and simply be flexible. Agree to let them end the tenancy early, either

a) on a specific date (eg 10th Jan) or
b) on whatever date you are able to start a new tenancy with a new tenant.
c) you may or may not want to aso charge them your marketing costs.

If you go down this Early Surrender route with them
d) you need to discuss all the terms in detail (ideally face to face) and then
e) confirm it in writing preferably with dual signatures to avoid misunderstandings

Finally, yes, until the tenancy is ended (when and however) they remain liable for council tax, utilities etc.

G_M

Just to end:

if by any chance you omitted to complete S.83 of the TA with an address (I hope you added a postal address there!), then according to the Landlord and Tenant Act 1987 S48, the tenant does not have to pay rent. Any rent. At all.........

greent

I have indeed put our address in the document and said that notices must be served in writing - not by email. I will communicate that (that they need to invoke the break clause in their TA and it needs to be in writing 'proper') to them today and suggest that we meet asap to discuss this. Everything we agree I will document and get signed by them and me

Many thanks for all the comments and help

sennypijama

I'm going to approach this from a slightly different angle.

Your tenant seems unable to pay their rent.

If you insist that they keep the terms of their contract, are you also happy to accept that it seems very likely that your tenant will stop paying rent, and that you may have to start an eviction procedure that may allow them to stay around 9 months more in your property, all the time not paying rent, and with little chance that you will be able to reclaim the lost rent from them?

Another option is that they will "do a runner" on Jan 10th.

When people's circumstances change, when they are very ill, or have lost a job, and have no money, many try to do the right thing (as it appears your tenants are, to an extent). But that can change. One call to Shelter will tell them that they can stay in the property without paying rent until full court eviction proceedings are completed.

Given the above, you may - and it's up to you, of course - wish to agree to their request, put this down to experience, and start immediately seeking new tenants.

Comms69

If one of them is unwell and not working, it's unlikely you'll get rent.


Whilst you can insist they pay rent for the duration, the reality is they wont. You'll then have the expense of evicting, with little prospect of recovering the outlay.

FBaby

As per previous posts, you do need to consider the implications of not coming to a deal with them. It sounds that they are leaving because they can’t afford to stay. If they don’t have the money, they can’t pay. You can of course stick to the three months and when they don’t pay take them to court, but even then, it doesn’t mean you’ll see the money coming.

Assuming the only issue with the deposit is the wallpaper, then you can count on this to cover unpaid rent, therefore the earlier you can try to get a paying tenant in, the better the position for you. The process of going to court is stressful, exhausting and often extremely demoralising, so unless you do have plenty of time on your hands and you are prepared to go through it accepting that you might not get what you want out of it, I’d highly suggest looking at what is best for you financially.

I personally would agree for an early surrender of 6 weeks, on the condition that they take the wallpaper out and repaint (with the paint you’ve already have) and full access to prospective tenants (keeping the place tidy etc… even though that’s not really enforceable of course).

mailmannz

I was about to say the same thing as you Senny.

The question is, which is the greater financial risk to you? Having pee'd off tenants NOT paying rent OR having ex tenants who have paid up to the 10th of January AND you don't have to return their deposit?

Not being funny but to me the easier option for you would be to let them leave on the 10th and for you to get fee paying tenants in ASAP. The risk, as Senny points out, is you could have someone not paying rent in your flat for pretty much all of 2018 which will end up costing you a lot more to get rid of them than you, potentially, could ever hope of recovering from them?

Maybe the more sensible approach would be to allow them to leave on the 10th of January instead of drawing this out needlessly?

Regards

Mailman

G_M

greent wrote: »

I have indeed put our address in the document and said that notices must be served in writing - not by email. I will communicate that (that they need to invoke the break clause in their TA and it needs to be in writing 'proper') to them today and suggest that we meet asap to discuss this. Everything we agree I will document and get signed by them and me

If they invoke the Break Clause properly (at your legally justifiable insistance), then I see little point in either meeting, or documenting/ getting them to sign (other than the formal Break Clause notice).

The only reason I suggested meeting, discussing, and documenting was if you choose to ignore the Break Clause and instead reach agreement on an Early Surrender (which as others have suggested might be preferable but is at your discretion).

Crashy_Time

sennypijama wrote: »

I'm going to approach this from a slightly different angle.

Your tenant seems unable to pay their rent.

If you insist that they keep the terms of their contract, are you also happy to accept that it seems very likely that your tenant will stop paying rent, and that you may have to start an eviction procedure that may allow them to stay around 9 months more in your property, all the time not paying rent, and with little chance that you will be able to reclaim the lost rent from them?

Another option is that they will "do a runner" on Jan 10th.

When people's circumstances change, when they are very ill, or have lost a job, and have no money, many try to do the right thing (as it appears your tenants are, to an extent). But that can change. One call to Shelter will tell them that they can stay in the property without paying rent until full court eviction proceedings are completed.

Given the above, you may - and it's up to you, of course - wish to agree to their request, put this down to experience, and start immediately seeking new tenants.

Excellent advice. The tenant is ill, they are leaving, you are liable for council tax and you need to find a new tenant, just take a deep breath and get on with it, trying to force their hand could backfire and give you more hassle.

Crashy_Time

FBaby wrote: »

As per previous posts, you do need to consider the implications of not coming to a deal with them. It sounds that they are leaving because they can’t afford to stay. If they don’t have the money, they can’t pay. You can of course stick to the three months and when they don’t pay take them to court, but even then, it doesn’t mean you’ll see the money coming.

Assuming the only issue with the deposit is the wallpaper, then you can count on this to cover unpaid rent, therefore the earlier you can try to get a paying tenant in, the better the position for you. The process of going to court is stressful, exhausting and often extremely demoralising, so unless you do have plenty of time on your hands and you are prepared to go through it accepting that you might not get what you want out of it, I’d highly suggest looking at what is best for you financially.

I personally would agree for an early surrender of 6 weeks, on the condition that they take the wallpaper out and repaint (with the paint you’ve already have) and full access to prospective tenants (keeping the place tidy etc… even though that’s not really enforceable of course).

Not enforceable, and not appropriate to ask IMO when they have said they are ill, let them go, pay a tradesman to re-decorate, and get new tenants, and have them sign something to say they won`t tamper with decoration of the house.