We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tenants due to move in today, but received worrying news from employers - Best route forward?

Hi Folks,
Just seeking some advice here.
I have tenants who were due to start their tenancy today, but had just received calls today regarding possible job instability. They decided to not move in, in case they do move in, then find they are in financial difficulties/loss of income, and we discussed options.
My first thought - is for them, the best thing is just to cancel the tenancy, and they will just lose their holding deposit. They'll get their 5 weeks rent deposit returned.
Is this the best route? They asked whether I could push the start date of the tenancy back, but I'm unsure that could do anything meaningful to help them out (since we don't know how long this current situation will go on :neutral:). As a landlord (sad that our previous tenants decided to go their separate ways - best ever!), I can't really take the risk.
Thoughts welcome!


Comments

  • greatcrested
    greatcrested Posts: 5,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 20 March 2020 at 11:21PM
    They clearly don't want to move in, so your first decision is whether to keep or return the holding deposit, in full or in part.
    Personally, given the circumstances, I'd return it or at least half, though your decision might also be influenced by how dependant you are on the rental income, and how easily you anticipate finding a replacement tenant.
    We all need to be a bit more flexible and empatic in these times where we can.
    If they genuinely want to push the start date back, I'd suggest they need to commit to a specific, fixed date that you are happy with (ie not just 'when things settle down/become more certain') and with a clear understanding that the holding deposit would then be forfeit if they backed out.
    An alternative might be to offer them a contractual periodic tenancy instead of a fixed term - that way, if they lose their jobs etc, then can give notice and leave.
  • gppp888
    gppp888 Posts: 36 Forumite
    10 Posts Name Dropper
    Thanks for the response!
    Yes, since they do have accommodation right now, their safest option is probably not to proceed at all, and I can just re-market - this, I don't think this is an essential for them, more a 'nice to have' and I personally don't think they should commit to anything with their own uncertainty (and they still have a roof over their heads with family).
    The thought in the back of my mind was indeed to not to take the full holding deposit, as it's a tough enough time already for them, and I am actually very glad they were up front about it.
    I will most likely go with the option to cancel the tenancy (since the start date cannot now be altered - I could pause the rent until they would be in a position to move in, but there's no certainty this will be any time soon); however, I have told them that if the property is still available when the dust settles their side, then they would have first-dibs on renting again. Such a lovely guy and gal - feel so bad for them.
    Cheers again for the words of wisdom!
  • zxc9
    zxc9 Posts: 8 Forumite
    Seventh Anniversary Name Dropper Combo Breaker First Post
    Such a lovely guy and gal - feel so bad for them.
    Cheers again for the words of wisdom!
    In that case a full return of any monies they have paid would be the right thing to do
  • greatcrested
    greatcrested Posts: 5,925 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Fair enough.
    Though I was confused by your assertion " ..cancel the tenancy (since the start date cannot now be altered).." Why not? So long as both parties agree the contract can be altered in whatver way you wish.

  • JayRitchie
    JayRitchie Posts: 563 Forumite
    Seventh Anniversary 500 Posts Name Dropper
    I would return all of their deposit and be extremely grateful for their generosity. They could easily have moved in and not paid/ paid reduced rent if their incomes fell. 
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.