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Tenants Giving Notice months into 24 month lease

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  • saajan_12
    saajan_12 Posts: 5,089 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I would atleast inform the tenants that the notice is invalid as it needs to be in writing, giving 3 months and that they need to pay rent not use deposit in lieu, though of course the deposit (less deductions) would be returned asap once the tenancy terminates. Hopefully this will impress upon them that they are liable for longer and will try to do the right thing re agreeing an early surrender or paying rent until valid notice expires. If they choose to do otherwise anyway, you atleast have the option of claiming if you're left with a void through no fault of your own rather than giving them a free ride by formally agreeing to their suggestion of 10Jan termination, deposit used as rent.

    Pitfalls of their suggestion are
    - No deposit in case there are other damages you haven't seen or which occur when they're moving furniture out etc. The purpose of a deposit is to protect against that 'in case' - DON'T agree to use it / release it before they've left.
    - Even if no damages, you only have 1.5 months to advertise, reference and agree a move in with new tenants. IF there's a mismatch then you end up with a rental void through no fault of your own.

    They have the right to serve 3 months valid notice and terminate their rent obligation on 19Feb (if served today), no earlier. You could suggest:

    1) Advertise now, if you find someone to move in before 19Feb then you early terminate the current tenancy so you have no void, and the current tenants minimise the rent they pay beyond 10Jan

    2) Agree to terminate the tenancy on 10 Jan, the tenants pay an extra £X (e.g. half a months rent). This reduces the rent liablity for the tenants, if they have no use for the property after 10Jan anyway. The LL has free access for repairs/viewings without losing rent, but takes the risk that the rent is only paid for 2 weeks so beyond that they would have a void in rental income. Win-Win.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Excellent advice. The tenant is ill, they are leaving, you are NOT 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.
    Liability for CT where there is a fixed term (as here) remains with the tenant until the tenanccy is ended.

    That means eitther

    * when the fixed term expires (24 months + 1 day)
    * when proper notice under the Break Clause expires (3months)
    * or on whatever date the LL agrees to accept an Early Surrender from the tenants
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
    Of course enforceable.

    The LL has no obligation to accept an Early Surrender. So he can demand whatever conditions he wishes before agreeing. The tenants can then accept those conditions or fall back on the Break Clause or Fixed Term.

    If the conditions for an Early Surrender are agreed and documented, they can be enforced.
  • mchale
    mchale Posts: 1,886 Forumite
    OP, do you have a signed inventory with pictures to back it up?
    ANURADHA KOIRALA ??? go on throw it in google.
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