Adding a tenant

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    Adding a tenant

    Hi all,

    first post and pretty amatuer landlord here, so hope you can help (and if there is another thread on this topic, please do point me to it).

    My tenant (who has been in the property for 5 yrs+, never any bother with rent and has actually improved the decor etc of own accord - good tenant in other words) would now like a friend to join them in the property - she says the rent / bills are too high for her on current salary.

    We originally signed a rolling AST way back, and I haven't changed the rent for the entire period (it comfortably covers the mortgage) so don't necessarily want to use this as an opportunity to extract more rent for instance, and would like to keep the current tenant if at all possible.

    As a relatively time poor individual, but someone who would like to do things properly from a legal / risk perspective, but without wishing to create hassle, what is my best way to proceed?

    1) Brand new tenancy agreement with new tenant and old jointly and severally liable?

    2) Or can I keep my current long-standing tenant (with whom I have an excellent relationship) as sole tenant and just deal with her legally / continue to collect rent from her, with her dealing with arrangements re new tenant as a sort of sub-let?

    My preference is for 2) if I'm honest, as I have trust in my tenant, whereas I guess I'm legally altering the balance to 50/50 by doing 1). However, would this leave me a in dangerous, or risky position legally - with regard to any insurance, future problems and so on? Is sub-letting in this way ok? would appreciate any insight into potential pitfalls of doing this even if it is ok.

    All advice appreciated, and thanks for reading.


    Option 2 - with new person as a lodger - is fine if you are happy.

    If new person is financially solvent (and you would like them as a backup if current tenant defaults) then you can assign the current tenancy from "Current" to "Current and New".

    This would leave the existing arrangements unchanged, other than the extra name.

    There is an example of a "deed of assignment" written by another LLZ user.


      Originally posted by martinlee77 View Post
      My preference is for 2) if I'm honest, as I have trust in my tenant, whereas I guess I'm legally altering the balance to 50/50 by doing 1).
      I think I'd keep it simple and allow T to have a lodger (it's not 'subletting' unless T gives exclusive possession to any part of the property - but still essential to check with mortgage/insurance companies as to their policies). Give this link to your T if you opt for this arrangement

      If you created a new agreement with both people as joint tenants, there is no '50/50' balance. Legally, there is no such thing as a share of the rent. Both Ts would be jointly and individually liable for the WHOLE of the rent.

      Also note that you'd have to legally end the current tenancy agreement first before creating a new one, repay the deposit to current T, do a check-out/in inventory, take a new deposit and protect it in a scheme and provide the prescribed information.


        Originally posted by Snorkerz View Post
        There is an example of a "deed of assignment" written by another LLZ user.
        Are you sure this form applies when there is no 'outgoing tenant'?


          Dear both,

          thanks for the kind replies and insights, very helpful and much appreciated. I found the landlordlodger website especially helpful so thanks for that.

          I think on balance then I will go for option 2) as this seems to be the best way to preserve my existing good relationship with my tenant, and then rely on them/ give them the responsibility to manage the lodger (who is her colleague from work). I think I'll not use the deed of assignment for that reason but thanks for the suggestion.

          I will highlight the lodgerlandlord site to her, and suggest some of the pointers it gives - references, deposit, screening and the like.

          So - thanks again for the help, and any further input appreciated if you can think of anything I might have missed.

          Best wishes



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