Sub-tenant refuses to pay rent

Comms69

D8D wrote: »

I've just rang propertyinvestmentproject for some advice, they said that regardless of the wording of the contract, if the contract duration is less than 6 month it's not considered an Assured Shorthold Tenancy. Therefore legally my tenant will be considered a lodger. Thoughts? - Given an AST can be 1 day, I would avoid ever asking them for advice on anything again.

Moreover, I found this:
Tenants are excluded from protection if their landlord is a Resident Landlord, which means I'm only required to give 'reasonable notice'. So does this effectively overrides our written contract which states one month notice? - Not if you voluntarily give them more rights than the law provides. Consider the law a minimum, not a maximum.
See Resident Landlord section on (can't post links as new user): shelter uk /tenancies_excluded_from_protection

If this is the case, my tenant is considered an 'Excluded Tenant' - excluded occupier*, which means I only need to give him reasonable notice. Our contract does say one month notice, however since he breached it by not paying rent am I right to understand that as an excluded tenant I can evict him on a reasonable notice only?
See 'eviction of excluded occupiers' section on (again, can't post link unfortunately): shelter uk / excluded occupiers

Also, as such I don't need to protect the tenant's deposit.

As has been said, if you grant someone a tenancy, they are a tenant.

zagubov

For the future, if the rooms are lockable, get duplicate keys made, to ensure you're in a lodger-landlord setup.
Never write tenant on any paperwork or use the word to anyone else.
I'm not sure this situation is in your interests.
Are you passing on all the subtenant's money to the landlord?
Is s/he and are you meant to declare this as income?

D8D

I understand, however since I am a resident landlord (even as a mesne tenant) the subtenant is an excluded occupier and therefore any extra rights given to the tenant are limited to our contract, no? And if they breach this contract they are no longer entitled to these rights?
So effectively I could legally give him a reasonable notice, rather than a one month notice, since he breached our contract?

Comms69

D8D wrote: »

I understand, however since I am a resident landlord (even as a mesne tenant) the subtenant is an excluded occupier and therefore any extra rights given to the tenant are limited to our contract, no? And if they breach this contract they are no longer entitled to these rights?
So effectively I could legally give him a reasonable notice, rather than a one month notice, since he breached our contract?

If you give someone tenant rights, that means you can never evict them. Just like your landlord can never evict you.


Only a court can do so.


That has been explained to you. Since you haven't bothered to post what the contract actually says, this is all academic.

D8D

zagubov wrote: »

For the future, if the rooms are lockable, get duplicate keys made, to ensure you're in a lodger-landlord setup - they're not lockable
Never write tenant on any paperwork or use the word to anyone else - understood
I'm not sure this situation is in your interests.
Are you passing on all the subtenant's money to the landlord? yes
Is s/he and are you meant to declare this as income?

there's no income/profit, the occupier simply pays a share of the rent. The rent he pays me is what gets paid to the landlord.

Comms69

D8D wrote: »

there's no income/profit, the occupier simply pays a share of the rent. The rent he pays me is what gets paid to the landlord.

Oh so you're not paying tax either. HMRC is going to love you....

getmore4less

D8D wrote: »

there's no income/profit, the occupier simply pays a share of the rent. The rent he pays me is what gets paid to the landlord.

Your lodgers/tenants your income?

D8D

Comms69 wrote: »

If you give someone tenant rights, that means you can never evict them. Just like your landlord can never evict you.


Only a court can do so.


That has been explained to you. Since you haven't bothered to post what the contract actually says, this is all academic.

Attached the contract below. I've read all the comments and appreciate the advice, I'm simply trying to understand if by me being a Resident Landlord and him an Excluded Occupier, does him breaching the contract effectively revert things to the law/rights of a resident landlord, which means being able to give reasonable notice? Thanks

LEASE AGREEMENT
The sublessor agrees to sublet and the subtenant agrees to take the premises described below. Both parties agree to keep, perform and fulfil the conditions and agreements below:
1. The sublessor: xxx
2. The subtenant: xxx
3. Premises location: xxx
4. The sub-lease covers sole use of the right-side back bedroom and shared use of the communal areas.
5. The term of this sublease is minimum of 2 months, beginning 2nd August 2019, and will continue as a rolling lease thereafter.
6. The rent is £600 per month, plus all-inclusive bills of £80, payable in advance on the 20th day of each month for the month ahead.
7. The sublease agreement will terminate after 1 month’s notice is given by either the sublessor or the subtenant. There shall be no holding over under the terms of this sublease agreement under any circumstances.
8. The lease may be liable to periodic rent increases. In the event of an increase in the rent payment the sublessor will provide the subtenant with a minimum of one month's notice.
9. Utilities covered by monthly £80 fixed payment are Water, Gas, Electricity, Council Tax & Broadband. This utilities payment may be revised for the premises during the sublease
agreement in accordance with latest supplier prices.
10. Upon termination of the contract, the subtenant agrees to surrender and deliver to the sublessor the premises and all furniture and decorations within the premises in as good a condition as they were at the beginning of the term, reasonable wear and tear excepted. The subtenant will be liable to the sublessor for any damages occurring to the premises or the contents thereof or to the building which are done by the subtenant or their guests.
11. Subtenant agrees to pay to sublessor a deposit of £680 to cover repairs and cleaning of such damages described above. Sublessor agrees that if the premises and contents thereof are returned to them in the same condition as when received by the subtenant, reasonable wear and tear thereof excepted, they will refund to the subtenant £680 at the end of the term, or within 30 days thereafter. Any reason for retaining a portion of the deposit shall be explained in writing within 30 days to the subtenant.
12. This lease constitutes the sole agreement between the parties, and no additions, deletions or modifications may be accomplished without the written consent of both parties.
13. The words “sublessor” and “subtenant” as used herein include the plural as well as the singular; no regard for gender is intended by the language in this sublease.
14. The parties hereby bind themselves to this agreement by their signatures affixed below on this 26th day of July, 2019:
SUBLESSOR: xxx, ____________________________(signature)
SUBTENANT: xxx, ____________________________(signature)

D8D

Comms69 wrote: »

Oh so you're not paying tax either. HMRC is going to love you....

Tax on what? I'm not making any profit or income from this, it's purely rent payment to cover the main rent, the sum is identical.

Comms69

D8D wrote: »

Attached the contract below. I've read all the comments and appreciate the advice, I'm simply trying to understand if by me being a Resident Landlord and him an Excluded Occupier, does him breaching the contract effectively revert things to the law/rights of a resident landlord, which means being able to give reasonable notice? Thanks

LEASE AGREEMENT
The sublessor agrees to sublet and the subtenant agrees to take the premises described below. Both parties agree to keep, perform and fulfil the conditions and agreements below:
1. The sublessor: xxx
2. The subtenant: xxx
3. Premises location: xxx
4. The sub-lease covers sole use of the right-side back bedroom and shared use of the communal areas.
5. The term of this sublease is minimum of 2 months, beginning 2nd August 2019, and will continue as a rolling lease thereafter.
6. The rent is £600 per month, plus all-inclusive bills of £80, payable in advance on the 20th day of each month for the month ahead.
7. The sublease agreement will terminate after 1 month’s notice is given by either the sublessor or the subtenant. There shall be no holding over under the terms of this sublease agreement under any circumstances.
8. The lease may be liable to periodic rent increases. In the event of an increase in the rent payment the sublessor will provide the subtenant with a minimum of one month's notice.
9. Utilities covered by monthly £80 fixed payment are Water, Gas, Electricity, Council Tax & Broadband. This utilities payment may be revised for the premises during the sublease
agreement in accordance with latest supplier prices.
10. Upon termination of the contract, the subtenant agrees to surrender and deliver to the sublessor the premises and all furniture and decorations within the premises in as good a condition as they were at the beginning of the term, reasonable wear and tear excepted. The subtenant will be liable to the sublessor for any damages occurring to the premises or the contents thereof or to the building which are done by the subtenant or their guests.
11. Subtenant agrees to pay to sublessor a deposit of £680 to cover repairs and cleaning of such damages described above. Sublessor agrees that if the premises and contents thereof are returned to them in the same condition as when received by the subtenant, reasonable wear and tear thereof excepted, they will refund to the subtenant £680 at the end of the term, or within 30 days thereafter. Any reason for retaining a portion of the deposit shall be explained in writing within 30 days to the subtenant.
12. This lease constitutes the sole agreement between the parties, and no additions, deletions or modifications may be accomplished without the written consent of both parties.
13. The words “sublessor” and “subtenant” as used herein include the plural as well as the singular; no regard for gender is intended by the language in this sublease.
14. The parties hereby bind themselves to this agreement by their signatures affixed below on this 26th day of July, 2019:
SUBLESSOR: xxx, ____________________________(signature)
SUBTENANT: xxx, ____________________________(signature)

You know, I'm going to say no they aren't a tenant, by the slimmest of margins - but ultimately a judge may decide otherwise.


The bigger issue is you haven't been paying tax on your income - yes it's YOUR income - and HMRC are going to pin you to the wall.


Don't annoy this person.