Student accommodation

inacrisis

Hi all

My sister is at uni and signed for this years rental house back in June. She has since decided to take a year out and so no longer wants the house, luckily she has found someone to take over the contract, I presume she will lose her deposit, the contract states she has to pay 50% retainer for July/August (But she isn't allowed to stay in the house in this time....)

The agency are saying even though someone has taken over the contract she has to still pay July and August, this is in her contract so I think she is stuck with this but I wanted to check is there a way to check that the agency aren't charging this new person a retainer for July/August as well? I know cause of GDPR the agency won't give the name of the new tennant, I suppose she could ask her friends who are still in the house to check with the new person in September....

is it even legal for them to charge her for July/Aug and then charge the new tennant for the same period?

Many thanks for any help

Comms69

inacrisis wrote: »

Hi all

My sister is at uni and signed for this years rental house back in June. She has since decided to take a year out and so no longer wants the house, luckily she has found someone to take over the contract, I presume she will lose her deposit, the contract states she has to pay 50% retainer for July/August (But she isn't allowed to stay in the house in this time....)

The agency are saying even though someone has taken over the contract she has to still pay July and August, this is in her contract so I think she is stuck with this but I wanted to check is there a way to check that the agency aren't charging this new person a retainer for July/August as well? I know cause of GDPR the agency won't give the name of the new tennant, I suppose she could ask her friends who are still in the house to check with the new person in September....

is it even legal for them to charge her for July/Aug and then charge the new tennant for the same period?

Many thanks for any help

It's complicated. But i'll try keep it simple.


She had a contract (NOT a tenancy) and in effect she breached it.


Her deposit, assuming it was not a holding deposit, but rather a deposit against damages to the property etc. Is actually her to be returned. (and depending on when it was paid and what has been done to it, she may be able to make a claim for 'compensation' - so provide more detail on this)


The retainer fee, is slightly more complex and may well be forfeited - would need to read the contract.


Whether they charge the other person is largely irrelevant to her.

inacrisis

Thanks for your reply,

The agreement says for deposit

"Deposit - The tenant pays the deposit as security against the tenants obligations and to pay the LL for the reasonable costs for any breach of these obligations."

It then goes on to say the deposit cannot be used to pay any rent due and that all monies will be returned to the tenant as soon as possible on moving out..

Sorry I can't send it all she has sent me a PDF but I can't copy and paste it.

The retainer fee only is really mentioned at the start where it says July/August half rent £425 payable by the 1/5/18. tbh the new person taking over the contract is unlikely to pay this retainer fee as we are already at the end of August. So their contract wouldn't even include July and most of August.

Also should the guarantor be on the contract? My sister thinks my gran is the guarantor but there is nothing in the contract to say who is responsible to pay if my sister can't? She is volunteering for a year and has a Saturday job which pays £25 a week so even finding £425 for the retainer is going to be difficult for her.

Lastly, if she pays the retainer and a new occupant is in place for September, has she 'breached the obligations'? If not then there should be no reason not to get her deposit back?

Many thanks

Comms69

inacrisis wrote: »

Thanks for your reply,

The agreement says for deposit

"Deposit - The tenant pays the deposit as security against the tenants obligations and to pay the LL for the reasonable costs for any breach of these obligations."

It then goes on to say the deposit cannot be used to pay any rent due and that all monies will be returned to the tenant as soon as possible on moving out..

Sorry I can't send it all she has sent me a PDF but I can't copy and paste it.

The retainer fee only is really mentioned at the start where it says July/August half rent £425 payable by the 1/5/18. tbh the new person taking over the contract is unlikely to pay this retainer fee as we are already at the end of August. So their contract wouldn't even include July and most of August.

Also should the guarantor be on the contract? My sister thinks my gran is the guarantor but there is nothing in the contract to say who is responsible to pay if my sister can't? She is volunteering for a year and has a Saturday job which pays £25 a week so even finding £425 for the retainer is going to be difficult for her.

Lastly, if she pays the retainer and a new occupant is in place for September, has she 'breached the obligations'? If not then there should be no reason not to get her deposit back?

Many thanks

When was the deposit paid? And has it been protected in any of the deposit protection schemes?


I agree she should get the deposit back. But answer those two questions first

inacrisis

Yes it is with the deposit protection scheme and she paid it in June

Thanks

G_M

Still need more detail about the terms of the contract she signed:
* dates
* exact clauses re retainer
* deposit terms (you quote half, then resort to your own interpretation!)

inacrisis wrote: »

The agreement says for deposit

"Deposit - The tenant pays the deposit as security against the tenants obligations and to pay the LL for the reasonable costs for any breach of these obligations."
implies it could be used against unpaid rent

It then goes on to say the deposit cannot be used to pay any rent due
exact words please

and that all monies will be returned to the tenant as soon as possible on moving out..

Sorry I can't send it all she has sent me a PDF but I can't copy and paste it.
it may be a hassle - but if you want proper advice you need to provide proper information

The retainer fee only is really mentioned at the start where it says July/August half rent £425 payable by the 1/5/18.
is this an exact quote? Any other wording? How does this relate to the tenancy start date?

tbh the new person taking over the contract is unlikely to pay this retainer fee as we are already at the end of August.
you have no way of knowing what the new tenant will/won't be asked o pay

So their contract wouldn't even include July and most of August.
does yours?

Also should the guarantor be on the contract?
Often is but is not necessay, providing the Guarantee Agreement is correctly set up

My sister thinks my gran is the guarantor
"thinks"??!!! How can she (or your gran) not know? Find out.

but there is nothing in the contract to say who is responsible to pay if my sister can't? [STRIKE]She is volunteering for a year and has a Saturday job which pays £25 a week so even finding £425 for the retainer is going to be difficult for her.[/STRIKE]irrelevant

Lastly, if she pays the retainer and a new occupant is in place for September, has she 'breached the obligations'? If not then there should be no reason not to get her deposit back?

Many thanks

If a new tenant is in place then the assumption is that the contract is rescinded (cancelled). Therefore the only breaches could have been those committed previously eg the 'retainer' fee.

Bear in mind it is not up to her to put a replacement tenant in place. She can, of course, suggest a replacement, but it is up to the landlord whether he accepts that person.


A guarantee agreement should ideally be Executed as a Deed (tough court do sometimes accept agreements that are not). That means:


* it should be described as a Deed
* the Guarantor's signature should be witnessed
* the G should have been given a copy of the contract before signing (so as to know what they were guaranteeing!)

M2808

It is unlikely that the new tenant will be paying a retainer fee, as it would be like any other new student tenant starting in September.