Tenants split + want to leave before end of tenancy

Pendrive

Tenants on a fixed term contract up to next April say they have split up, and neither individually can afford the rent. They say they also don't have enough money to pay more then two months' rent from now, partly due to how Covid has affected the work of one of them. Also claim they weren't aware of the fixed term contract and thought they could give a month's notice (the fixed term was actually at their own request to provide greater security for them - I'd normally include a 6-month break clause). Anyone had this kind of thing happening? How did / would you respond? 

[Deleted User]

Pendrive said:

Tenants on a fixed term contract up to next April say they have split up, and neither individually can afford the rent. They say they also don't have enough money to pay more then two months' rent from now, partly due to how Covid has affected the work of one of them. Also claim they weren't aware of the fixed term contract and thought they could give a month's notice (the fixed term was actually at their own request to provide greater security for them - I'd normally include a 6-month break clause). Anyone had this kind of thing happening? How did / would you respond? 

I haven't had it happen to me but if it did given the current circumstances with the Coronavirus Act 2020 I'd agree to an early surrender of the tenancy.  Get them out quick and get some paying tenants into the property.  I'd expect the current tenants to at least forfeit the full deposit as well.

The issue you'd face by holding them to the fixed term is that they could easily stop paying rent and there is SFA you could do about it for the foreseeable future.

Aranyani

Just let them go.  If they haven't got the money to pay they aren't going to be able to pay and you aren't going to be able to do anything to change that. 

If they are currently up to date with the rent though then there is no grounds for withholding their deposit unless they have caused damage, so ignore that suggestion.

Grumpy_chap

Let them go.  
If you hold them to the term to April, they will stop paying at Christmas when they run out of money.  Nigh on impossible to evict then.
Also, you don't want a rowing couple in the property that don't want to be there and may no longer care for the property, or may cause damage if the rows get physical.

lesalanos

If you would normally include a break clause then let them leave in 2 months then.

The last thing you would need is them stopping, not paying rent or damaging anything 

tom9980

I would let them leave as soon as they can move given you would have no chance of eviction at the current time. It would be better to deal with a void for a few months over Christmas than waiting over a year with no rent.

[Deleted User]

Aranyani said:

Just let them go.  If they haven't got the money to pay they aren't going to be able to pay and you aren't going to be able to do anything to change that. 

If they are currently up to date with the rent though then there is no grounds for withholding their deposit unless they have caused damage, so ignore that suggestion.

It’s a surrender of the tenancy. Either party can lay down their terms and forfeiting the deposit when wanting to leave a fixed term several months early is not unreasonable. 

ameliarate

I had this in April and I let the tenant leave. It cost me a bit but probably less than her staying and not paying, got another tenant two months this later. 

macman

This is presumably a joint tenancy?
I'd ask them to leave in a month and pay you the extra month's rent or retain the deposit as compensation for  breach of contract, but it all depends what your preferred resolution is. Their 'excuse' that they thought they could just give a month's notice at any time is just too absurd as to be credible. Have they otherwise been good tenants? Is the deposit protected?
Could one of them remain and get a lodger in, with your agreement?

Pendrive

Many thanks for all of the responses - they are really helpful in thinking through the best approach. I'm inclining at the moment to letting them give 2 months' notice (which would take them beyond Christmas - it doesn't sound as if they have somewhere else to go as yet, and this is an inquiry at the moment) and pay any costs of terminating the tenancy. They have been good tenants, though one stopped paying rent for 3 months (he said he had lost his job due to Covid), and then repaid it later via an agreed repayment scheme, so is up to date now. They have said they have enough for another 2 months' rent. The deposit is protected. I am concerned about possibilities of non-payment of rent, though, and possible need then to have to get them out myself. So the 2-month notice from them, and costs involved in that, are where I'm at currently.

Pendrive

Oh - and to answer one question above - yes, it is a joint tenancy.