Backing Out Of Rental

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    Backing Out Of Rental

    Hi - I've suddenly had a change of circumstances that is going to force me to consider selling my rental property. It is currently empty but I had put it on the rental market and the agency has found a tenant who will move in at the beginning of May.

    Apparently it is too late for me to back out of this now as all the paperwork has (according to them) been signed on my behalf. I haven't signed anything as yet.

    Any advice on how I can extricate myself from this situation would be most welcome.

    #2
    If the tenant has signed a tenancy agreement it's probably a good contract.

    What you're proposing is to break the contract, which would entitle the tenant to sue you for any reasonably foreseeable loss arising.
    There isn't likely to be much loss arising, as the tenant can't have incurred much cost as a result of the agreement, but it could get a bit tricky if they have, for example, given notice on their current property.

    The agent will probably not be too pleased, as they stand to lose income, so you probably need to address their compensation as a first step.

    The key thing is not to allow the tenant to actually move in, as it's a very different situation if there's a tenancy and a contract, rather than a contract with no tenancy.
    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


      #3
      Yes, looks like it's a good contract. Now I have to try to work out how to stop them from moving in. Is there any point serving notice on them before they're even in? I know it's a 6 month notice period at the moment too

      Comment


        #4
        No, they don't have a tenancy yet so you can't serve notice. The tenancy begins once they take possession. You have to speak again to the Agent and make clear that the tenancy must not go ahead under any circumstances. You should probably change the locks as a precaution.

        Comment


          #5
          Unfortunately I've been over the agreement I originally signed and it seems that they do have the right to sign up tenants on my behalf so I don't really see where I stand.

          At present the kitchen is being stripped out and refitted and they've found some damp so I'm wondering if I can use this as a reason to hold off and the tenant may just get fed up of hanging round waiting. Unfortunately, the agent has them by the short and curlies too so they're obligated to fulfil their end of the contract just as I am mine.

          The agent has also said I'll be liable for any costs incurred by the tenant in finding another property, hotel bills, costs incurred for booking of removal van etc...

          Comment


            #6
            Originally posted by DPT57 View Post
            No, they don't have a tenancy yet so you can't serve notice. The tenancy begins once they take possession. You have to speak again to the Agent and make clear that the tenancy must not go ahead under any circumstances. You should probably change the locks as a precaution.
            Will that have any legal bearing?

            Comment


              #7
              Sorry, I feel really panicked by this situation because of my circumstances and the agency are playing hardball.

              If anyone can point my to somewhere where I can find help or give further information it would be very, very much appreciated.

              Comment


                #8
                It's very simple.

                The agent works for you - tell them in writing that you wish to break the contract and that the tenant cannot be allowed to move in to start the tenancy.
                If they push back, remind them that they work for you not the tenant and have a duty of care to act in your best interests and to follow your instructions.

                It doesn't matter what your agreement says with them about their signing on your behalf, you're going to break the contract and live with the consequences.

                There's no way to avoid being in breach of contract.

                Personally, I'd go and change the locks.
                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


                  #9
                  You could sell your property with the tenant in situ. At least then you will be receiving rent whilst it sells and all your paperwork should be up to date.

                  Comment


                    #10
                    Originally posted by jpucng62 View Post
                    You could sell your property with the tenant in situ. At least then you will be receiving rent whilst it sells and all your paperwork should be up to date.
                    I could do but nobody other than BTL buyers are going to want to but it as far as I can see because they're going to be in for a minumum of 6 months. Probably longer because I can't serve notice until month 4 & as things stand that notice period is 6 months so realistically it's 10 months.

                    Comment


                      #11
                      You've been given very good advice regarding this matter, If I were you I would follow that advice and contact the agents and change the locks, you'll probably be chased for compensation but it's better than trying to remove a tenant, especially if they don't want to move out, the agent can't refuse as they work on your behalf, ( although they will probably tell you different ), if they mention costs then ask for a breakdown of these in writing, if you don't agree with the costs then seek legal advice.

                      Comment


                        #12
                        And the rest.
                        At the moment no evictions are taking place at all.

                        Which is why you need to prevent the tenancy ever starting.
                        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


                          #13
                          Originally posted by weirdfish View Post
                          You've been given very good advice regarding this matter, If I were you I would follow that advice and contact the agents and change the locks, you'll probably be chased for compensation but it's better than trying to remove a tenant, especially if they don't want to move out, the agent can't refuse as they work on your behalf, ( although they will probably tell you different ), if they mention costs then ask for a breakdown of these in writing, if you don't agree with the costs then seek legal advice.
                          Yes, I've emailed the agency and told them I don't want the tenancy going ahead and I've also contacted a solicitor.

                          The agency are, of course, painting the worst picture imaginable so it would be good to get a breakdown of what those costs are likely to be.

                          Comment


                            #14
                            The agent and the tenant are obliged to keep their costs to a minimum.
                            No one should really be out of pocket that much.

                            Note that lost income/profit doesn't count as "loss".
                            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


                              #15
                              Originally posted by Barking Dogs View Post

                              I could do but nobody other than BTL buyers are going to want to but it as far as I can see because they're going to be in for a minumum of 6 months. Probably longer because I can't serve notice until month 4 & as things stand that notice period is 6 months so realistically it's 10 months.
                              I agree, but many BTL investors are happy to buy with a tenant in situ.

                              Comment

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