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Geordielad
Posts: 44 Forumite
I rent out a flat ai own. In October 2017 a couple signed a rental agreement to take occupancy of it on 7/1/19. The letting agent tried to contact them to ask for the deposit prior to moving in, they did not reply. On 3/1/19 he received an email stating they would not be moving in as they had been made redundant before Christmas. He asked for proof which they did not supply. They simply stated they would not be moving in. I am now trying to re let the flat but so far have not done so.
I emailed the supposed tenants to remind them they are still responsible for the rent and council tax as they signed the fixed term contract. I received a reply stating theyd told me they weren't moving in and If I contacted them again regarding it they would contact their solicitor. I replied stating they'd should as I'm sure they are responsible for the rent and council tax.
How do I stand legally as I am out of pocket £450 a month until I can re let it.
I emailed the supposed tenants to remind them they are still responsible for the rent and council tax as they signed the fixed term contract. I received a reply stating theyd told me they weren't moving in and If I contacted them again regarding it they would contact their solicitor. I replied stating they'd should as I'm sure they are responsible for the rent and council tax.
How do I stand legally as I am out of pocket £450 a month until I can re let it.
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Comments
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Your dates are a bit confusing! Typing error?I can't imagine a life without cheese. (Nigel Slater)0
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They did not move in so no tenancy was created.
They were never resident, so they will not owe council tax.
They had a contract with you, which they breached, so you could claim your consequential losses eg
* lost rent (till new tenant installed)
* re-marketing costs etc
I would take this out of the holding deposit which presumably your agent took. If they wish to claim it back, via their solicitor or the courts, you counter-claim as above.
Like Morbier I query your dates but am assuming you meanIn October 2018 a couple signed a rental agreement
If you have no holding deposit:
* get a new letting agent
* forget the money as a) it's too much hassle to sue and b) even if you win in court they'll have no assets so you'll be chasing £5 per week till they vanish and c) they've just been made redundant, so....... have a heart!0 -
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They did not move in so no tenancy was created.
They were never resident, so they will not owe council tax.
They had a contract with you, which they breached, so you could claim your consequential losses eg
* lost rent (till new tenant installed)
* re-marketing costs etc
I would take this out of the holding deposit which presumably your agent took. If they wish to claim it back, via their solicitor or the courts, you counter-claim as above.
Like Morbier I query your dates but am assuming you mean
If you have no holding deposit:
* get a new letting agent
* forget the money as a) it's too much hassle to sue and b) even if you win in court they'll have no assets so you'll be chasing £5 per week till they vanish and c) they've just been made redundant, so....... have a heart!
the agent took no deposit, so no,I will not be using them again. They were asked for proof of redundancy, they have not given it, I'd be more considerate should they prove it.
I spoke to the council re council tax and was given the impression they are liable.0 -
I'd be very surprised since, as I said, there was never a tenancy. Nor was there any occupation.Geordielad wrote: »the agent took no deposit, so no,I will not be using them again. They were asked for proof of redundancy, they have not given it, I'd be more considerate should they prove it.
I spoke to the council re council tax and was given the impression they are liable.
But CIS may be along soon and will know the answer.
Of course, if I'm right and you end up having to pay CT, then you could add that consequential cost to your claim.0 -
Assuming England or Wales
They are liable only if they actually hold/held a tenancy with a term of 6 months or more - that way they meet the definition of holding the material interest and become the 'owners' for council tax purposes. On that basis they don't have to be (or have been) resident to be held liable. It is the same overall concept at that in Leeds v Broadley.
If there was no tenancy of 6 months or more than they don't hold a material interest and would only be liable if they were actually resident.I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.0 -
I'd be very surprised since, as I said, there was never a tenancy. Nor was there any occupation.
But CIS may be along soon and will know the answer.
Of course, if I'm right and you end up having to pay CT, then you could add that consequential cost to your claim.
I should add, that the consequential losses MUST be mitigated.
So OP, you cannot just sit back and count the money coming in. You must prove you took action promptly.
Otherwise you may receive only part of your claim.0 -
They did not move in so no tenancy was created.
They were never resident, so they will not owe council tax.
They had a contract with you, which they breached, so you could claim your consequential losses eg
* lost rent (till new tenant installed)
* re-marketing costs etc
I would take this out of the holding deposit which presumably your agent took. If they wish to claim it back, via their solicitor or the courts, you counter-claim as above.
Like Morbier I query your dates but am assuming you mean
If you have no holding deposit:
* get a new letting agent
* forget the money as a) it's too much hassle to sue and b) even if you win in court they'll have no assets so you'll be chasing £5 per week till they vanish and c) they've just been made redundant, so....... have a heart!
If both parties had signed the tenancy agreement prior to moving in and both parties had copies of the signed agreement then yes it is binding.
One of the reasons ASTs tend to be signed on the actual moving day is to avoid scenarios such as these.
I would argue that they were responsible for the council tax from the agreed tenancy start date as again they signed the AST making them responsible for the rent and any utilities as laid out in the contract.0 -
You are incorrect. A contract, titled an AST or anything else, DOES NOT create a tenancy in law.If both parties had signed the tenancy agreement prior to moving in and both parties had copies of the signed agreement then yes it is binding.
One of the reasons ASTs tend to be signed on the actual moving day is to avoid scenarios such as these.
I would argue that they were responsible for the council tax from the agreed tenancy start date as again they signed the AST making them responsible for the rent and any utilities as laid out in the contract.0 -
You are incorrect. A contract, titled an AST or anything else, DOES NOT create a tenancy in law.
No, but it does create a contract and once signed and agreed by both parties become binding.
An extract from this web source https://www.thehouseshop.com/property-blog/when-does-a-tenancy-agreement-become-legally-binding/11898/
When Does a Rental Contract Become Legally Binding?
A tenancy agreement is just like any other contract, so as soon as both the tenants and landlord have signed the agreement, it becomes a legally binding contract. While the contract will become legally binding as soon as all parties have signed, this does not mean that the tenants are liable to start paying rent from this date. The contract will usually specify the move in date for the tenants and the date when the first rental payment is due.
If you have any concerns about the contents of the contract, or if you take issue with a specific clause in the agreement, you should discuss this with the other party before you sign on the dotted line. Once you add your signature to the document you are agreeing to uphold your duties and responsibilities as they are written in the contract, and it can be incredibly difficult to change or edit the contract once all parties have signed – so make sure you’re happy with everything contained in the tenancy agreement, and don’t forget to read the small print.0
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