Newbie question : Delayed Entry Date

[Chiswickw4]

Hope someone can give some advice,

I am renting out my parents flat in London and have zero experience in the lettings market, I have a signed a two year shorthold tenancy agreement with tenants for a start date of 1 December, the flat is being renovated and my builders have told me that it will not be finished until the 10th.

The tenants have paid 12 months rent in advance, a one month guarantee and agency and referencing fees and are now asking to cancel the contract and for a full refund, claiming breach of contract on my part, I have a meeting with the agents tomorrow and was hoping for some advice on where i stand legally.

Many thanks

[theartfullodger]

Hope someone can give some advice,

I am renting out my parents flat in London and have zero experience in the lettings market,

Who is named as landlord - you or parents, please?

Get some education quick before doing any more lettings: There are courses, please do them for your parent's sake: The alternative (.. wonder what that is... ...) is more expensive. You are at major risk of making expensive mistakes! ***

I have a signed a two year shorthold tenancy agreement...

Next time, 6 months max then periodic.

with tenants for a start date of 1 December, the flat is being renovated and my builders have told me that it will not be finished until the 10th.

Never sign contracts without certainty of vacant possession....i.e. when last lot have gone & place is OK enough to rent immediately

.....The tenants have paid 12 months rent in advance, a one month guarantee and agency and referencing fees and are now asking to cancel the contract and for a full refund, claiming breach of contract on my part, I have a meeting with the agents tomorrow and was hoping for some advice on where i stand legally.

Many thanks

Return all monies: You have a firm contract (but not yet a tenancy, tenancy starts on occupation) and could be sued for breach of contract.

Be more careful next time?

Are you registered with any redress scheme? Are you charging parents?

*** I made much more painful, expensive and long-drawn out mistakes when I started as a landlord: I then resolved to start learning. Still learning, still making mistakes.

[Jon66]

You are in breach of contract as they have a contract with you to have the property from the 1st but it isn't available. Is that a repudiatory breach? Possibly. Over 2 years, 10 days late isnt much though. What do you think they will say if you refuse to release them from the contract? I think you may have to take this one on the chin and let them cancel. The alternative is to treat them in breach of contract and responsible for your loss of income for the void period. They could counter claim for their losses if any and you're in a lot of hassle. Have you had a chat with them? Tried a bit of negotiation personally, rather than the agent doing it? Sometimes dealing with the tenant yourself is a good idea. Having said that if they are being difficult now do you really want them as tenants?

[Jon66]

Agree with pp though, but I would say 1 year as if less you have to pay the tenant find fees all over again at 6 months if they don't stay.

[DPT57]

Agree with pp though, but I would say 1 year as if less you have to pay the tenant find fees all over again at 6 months if they don't stay.

That's true, but the cost of getting the wrong tenant and being stuck with 12 months of no rent could be much higher.

[JK0]

Be thankful you have a way out of a two year tenancy IIWY. That was your second mistake. The first was even showing the place before it was completed... how will you get the rent the place commands when it is a building site?

[mariner]

Return all monies before Dec 1st .This may save you paying for Ts temp accom, (budget hotel or B&B) storage of Ts contents and poss 2 transfer costs
I would not offer them a new or deferred Contract. - Litigious
Join NLA/RLA & undertake their LL Distance Learning Modules
Find new Ts after New Year.
Only offer a 6 month Fixed Term initially and don't ask for 12 months rent in advance.

[jpkeates]

Refund the money and thank your lucky stars you've dodged a bullet with the tenancy.

Let it again, when the work is complete.
Never (ever) let for more than 6 month's initially and never take a year's rent in advance.

The agent may be very difficult about their fees, and you may have to point out that they should never have allowed you to accept a lease of that length and with that payment in advance.
Both those things suit the tenant and agent, not the landlord (and they work for you).

[Flashback1966]

the flat is being renovated and my builders have told me that it will not be finished until the 10th.

That comes from experience. When I have builders, I don't sign a contract until I know the builders are gone. No landlord training course will tell you that, it comes from experience.

I would also be curious, as to why they are paying 12 months in advance....

[leaseholder64]

Cannabis farmers and brothel operators tend to want to pay in in advance.

[jpkeates]

Also tenants who use agents who want to charge a year's rental collection fees up front and do the job once!