COVID clause in ASTs

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    COVID clause in ASTs

    Does anyone have anything in their contracts? E.g. clause limiting liability where outbound tenants have to isolate and can't move out in time for commencement of next tenancy?

    Anyone had this happen?
    Assume I know nothing.

    #2
    Notwithstanding the fact that this is essential to how the student rental market operates, landlord granting tenancy to new tenants when they're not in possession of the property because the previous tenant haven't left yet is just looking for troubles. That was the case even before COVID-19.
    I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

    I do not answer questions through private messages which should be posted publicly on the forum.

    Comment


      #3
      Originally posted by KTC View Post
      Notwithstanding the fact that this is essential to how the student rental market operates,
      I'm afraid that I don't understand what this means. I don't know anything about the student rental market - it's not an area I deal with.

      In over twenty years of letting my portfolio I've never once had a tenant remain beyond the expiry of their notice. I appreciate your choice to not take any risk but the cost of waiting until I were in possession before re-letting a property could easily run well into five figures a year which, based on my experience to date, seems somewhat disproportionate to the risk.

      I might think differently if they were leaving reluctantly after I'd given them notice (which I have only ever done once). Or if I specialised in lettings to a less reliable / stable profile of tenant. But most tenants I deal with are on the whole reasonable and reliable.

      However, COVID is largely beyond everyone's control and could affect even the most reliable and organised tenant. I think it might significantly increase the risk of such an occurrence. Covid clauses which remove fault if completion of a transaction is delayed as a result of a Covid defined event are making an appearance in conveyancing. So, for instance, someone contracts to sell their house on a particular date but catches COVID and is forced to isolate, preventing them from giving vacant possession. Hence the question.
      Assume I know nothing.

      Comment


        #4
        Originally posted by Hooper View Post
        the cost of waiting until I were in possession before re-letting a property could easily run well into five figures a year which, based on my experience to date, seems somewhat disproportionate to the risk..
        We're obviously not in the same market.
        I never have viewings until the property is empty, but the downside is a few weeks rent, which is never that large a sum of money for me.
        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 Hooper View Post
          Does anyone have anything in their contracts? E.g. clause limiting liability where outbound tenants have to isolate and can't move out in time for commencement of next tenancy?
          As jpk says, signing up to a new letting before a tenant has moved out is a risk. It is really a risk which ought to be borne by the landlord and not by a tenant who may have given notice on another property or need to move in. I fear it may be classed as an unfair term.

          Comment


            #6
            If the LL cannot provide entry into the property on the appointed date that is a breach of contract. To that end the T are entitled to compensation for losses arising from the breach. If you had a clause, then this has to be an unfair term, and in contradiction to the main term of the contract.

            Comment


              #7
              Rather than unfair, I wonder whether it can cause the tenancy to be void for uncertainity if it's somehow worded with the effect of you have a tenancy from X date if the existing tenant moves out, but not if they don't for COVID-19 related reasons.
              I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

              I do not answer questions through private messages which should be posted publicly on the forum.

              Comment


                #8
                All good points, thanks.
                Assume I know nothing.

                Comment

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