Is the letting agent right in saying this?

SashikoStitcher

Needananswer

I must like living on a knife edge...my agent gets the tenant in on the pre set arranged day,signs and issues the keys.

Does the agent check that the deposit funds have cleared before handing over the keys?

G_M
Yes, the flat was already vacant when the tenancy agreement was signed; I'd been doing some redecorating.

SashikoStitcher

Thanks GM...I have a clear void between tenants, hence sign on the day...wouldn't ever go for one out one in with no void overlap.

But that is a reason to sign before moving in day then @needanaswer, isn't it? G-M pointed out an issue that could arise if previous tenants did not vacate.

need_an_answer

SashikoStitcher wrote: »

Needananswer



Does the agent check that the deposit funds have cleared before handing over the keys?

G_M
Yes, the flat was already vacant when the tenancy agreement was signed; I'd been doing some redecorating.

yes...all funds cleared and in my case tenant doesn't sign and get keys until they have.

need_an_answer

SashikoStitcher wrote: »

But that is a reason to sign before moving in day then @needanaswer, isn't it? G-M pointed out an issue that could arise if previous tenants did not vacate.

my previous tenants are well out of the contract...I don't even tend to advertise the properties until they have vacated...so there would never be a situation that old tenant was still in occupation when new tenant comes to sign/move in

G_M

need_an_answer wrote: »

Thanks GM...I have a clear void between tenants, hence sign on the day...wouldn't ever go for one out one in with no void overlap.

anyway back to topic...

???


If there's a 'clear void' between tenancies, that's the ideal scenario for signing in advance, so not sure I understand your "hence sign on the day"??


As soon as the last tenant leaves and the property is empty, you are in a position to commit yourself to the next tenancy. So why not give your next tenant the security of knowing he can move in, say, next week/month/whenever, and give yourself the security of knowing you have the next tenancy guaranteed?


You can the spend a week or so re-painting, fixing that loose roof tile etc without worrying that your applicant might find a more attractive property. Especially as 'holding deposits' are now limited to one weeks rent.........

SashikoStitcher

@theartfullodger

It's not when tenant is given keys but when tenant takes up occupation: See section 54(2)) LPA 1925

Are you sure that reference is correct? s54 relates to creation of leases not in writing

Creation of interests in land by parol.
(1)All interests in land created by parol and not put in writing and signed by the persons so creating the same, or by their agents thereunto lawfully authorised in writing, have, notwithstanding any consideration having been given for the same, the force and effect of interests at will only.

(2)Nothing in the foregoing provisions of this Part of this Act shall affect the creation by parol of leases taking effect in possession for a term not exceeding three years (whether or not the lessee is given power to extend the term) at the best rent which can be reasonably obtained without taking a fine.

SashikoStitcher

my previous tenants are well out of the contract...I don't even tend to advertise the properties until they have vacated...so there would never be a situation that old tenant was still in occupation when new tenant comes to sign/move in

Exactly - so why only sign on the day?

AdrianC

SashikoStitcher wrote: »

No, I don't expect to get 6 months rent from them. However I have monies in hand and I am concerned that my letting agent will pay them back out because he doesn't fully understand my legal rights.

The theoretical situation of what would have happened had the tenant not signed the contract is irrelevant.

My losses are the rent I would have got on the property up to the date on which a replacement tenant moves in, plus the costs of setting up the new tenancy such as reference checks, contract preparation fee charged by agent etc.

I have an obligation to mitigate my losses by finding a new tenant asap.

Scenario A
Day 1 - tenant fails to sign tenancy.

Scenario B
Day 1 - tenant signs tenancy.
Day 3 - tenant due to collect keys, instead says "I've changed my mind".

In either scenario, on the day after the tenant said "Nah" - day 2 in scenario A, or day 4 in B - you'd have been saying to the LA "Well, he was a muppet. Was anybody else interested, or do we need to re-advertise?"

So what's the difference between those two? In scenario B, you had two choices on day 3.
You could just have had that conversation with the LA, or you could have stamped your foot and held out on some kind of point of principle to see what you can get out of the tenant.

It all depends on whether you just want to get on with business, or whether you want to get some kind of tenuous revenge on the bad man for mucking you about a little bit.

How far down the line are we from that "day 3", and have you started to seriously search for the replacement tenant yet?

SashikoStitcher

Scenario B I have the tenant's advance rent money in my bank account and she is liable to me in breach of contract. That is a pretty big difference.

The property went straight back on the agent's website as soon as the tenant withdrew.

AdrianC

SashikoStitcher wrote: »

Scenario B I have the tenant's advance rent money in my bank account

Correct. That doesn't mean it's your money.

and she is liable to me in breach of contract.

Yes, that is also correct. But that does not mean you are entitled to keep every single penny of that advance payment, either legally or morally.

You are, of course, perfectly entitled to deduct any genuine losses from the monies you hold - but no more than that. And you have a legal duty to mitigate those losses.

The property went straight back on the agent's website as soon as the tenant withdrew.

So there y'go. You mitigated them. The grand total of the difference in loss between the two scenarios (no contract, breached contract) is two days of re-marketing opportunity. Impossible to quantify, not least because it's minimal in practice.