Break clause enquiry

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    Break clause enquiry

    Hi all,

    I am a newish landlord of a property and wanted to know where I stand if a tenant decides to exit their tenancy agreement early. From reading my agreement I see that there's a break clause in it which states 3 points (pictured). For a bit of background, I've had one tenant who moved in and out on the same day and said that they didn't like the neighbour, which in my opinion is crazy considering it was only day one of their house move, I did agree for them to leave tho as the agent managed to find someone else quickly but obviously it's not ideal. I am now on the lookout for a new tenant and wanted to know where I would stand if this happened again? I've seen that in my breakout clause there are 3 points (attached) and none of them state that the tenant can break the agreement and that only the letting agent or myself can break it but not before 6 months, is this correct or have I missed something somewhere? Thanks in advance guys!
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    #2
    in theory the tenant is liable to you for rent and other outgoings until the end of the term, however your chances of getting paid are to say the lease remote.

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      #3
      If there is no clause for the tenant to give notice - with at least as good terms as landlord - then the landllord's clauses are null.

      Fire whatever clown drafted/gave you that tenancy agreement (did you pay for it?) and , I 'umbly suggest, simply use a 6 month AST then continue as periodic.

      Break clauses are often badly drafted: Don't try to rely on something you don;t know will work!
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        The tenant needs an equal clause, otherwise those clauses are probably automatically unfair.

        2.7.2 is pointless, because a tenant can't serve notice in the fixed term.

        2.7.3 is pointless because when the tenancy becomes periodic the clause will be set aside by statute (unless the contract becomes periodic as a result of the contract itself - when it would probably simply be unfair).

        Your legal position with a tenant leaving early is probably strengthened by not having any break clause at all.

        Whoever wrote that agreement doesn't seem to know what they're doing.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Originally posted by jpkeates View Post
          The tenant needs an equal clause, otherwise those clauses are probably automatically unfair.

          2.7.2 is pointless, because a tenant can't serve notice in the fixed term.

          2.7.3 is pointless because when the tenancy becomes periodic the clause will be set aside by statute (unless the contract becomes periodic as a result of the contract itself - when it would probably simply be unfair).

          Your legal position with a tenant leaving early is probably strengthened by not having any break clause at all.

          Whoever wrote that agreement doesn't seem to know what they're doing.
          Yup with my limited knowledge I can see that this doesn't look too fair. Are there any examples free / paid tenancy examples I could look at to compare at all that could be recommended?

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            #6
            What can a landlord do to stop a tenant who has taken possession from declaring very soon after taking possession that the tenancy is at an end? The answer to that is that the tenancy has started and the tenant has no right to bring it to an end. There is not anything you can put in a tenancy agreement which will help.

            On the other issue raised in this thread, I am not convinced that a landlord's only break clause is unenforceable if it is brought to the attention of the tenant and is in plain.and intelligible language. However, if a lanlord considers that he really needs a break clause he ought to be granting shorter tenancies instead. There is always the risk that a court will hold the clause unenforceable, that the clause does not work or the notice is defective.

            Comment


              #7
              Originally posted by krod View Post
              Yup with my limited knowledge I can see that this doesn't look too fair. Are there any examples free / paid tenancy examples I could look at to compare at all that could be recommended?
              Just offer a six month tenancy with no break clause.

              Break clauses seem to be almost magnets for misunderstanding and rarely work as people think that they do.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment

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