Tenants sublet their rooms over the summer

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    Tenants sublet their rooms over the summer

    I had 4 students renting a house from me on an AST. The contract has just ended. 2 are leaving and 2 are staying on with 2 new people joining them. I inspected the house yesterday and was told by one of the tenants that 1 who is leaving and 1 who is staying rented their rooms out over the summer. They gave the other tenants money for bills. Where do I stand? As they were in breach of contract and probably the multiple occupancy law I don't know what to do. Don't want this girl to stay on but she signed her new contract before I found out. Their deposits are still held by DPS. What are the consequences?

    Also damage has been caused and the house isn't clean. I need to deduct money from the girls' deposits who are staying on as well as those that are leaving but then I won't have full deposits for them for next year!

    #2
    Was this a joint T between all 4 Ts or did each rent a room with ind ASTs?
    Was rent paid in full during the summer (sub let period)?
    If 2 are leaving & 2 are staying (1 signed new AST) then orig AST has ended, you should do an inspection asap and deduct Ts damage from total deposit or pro rata if ind dep paid, repay the remainder, then require new Ts to provide new full deposit again protected in DPS and supply each new T with 'reqd info'. Is property classed/registered as HMO?
    OK sub-letting was a breach of contract, but that contract has now ended.
    May be worth reminding new Ts that sub-letting is forbidden and there is a limit on no of occupants. Can't really prevent students having 'friends' staying overnight or for short periods.
    ( 2 remaining Ts would only have to top up their dep by their share of damages)

    Comment


      #3
      Originally posted by mariner View Post
      OK sub-letting was a breach of contract, but that contract has now ended.
      OP said that it is a joint tenancy among 4 joint tenants, and that not all joint tenants left at the end of the term (actually I'm not clear whether any of them have left). So unless OP explicitly accepted to terminate this joint tenancy we cannot assume that it has.


      The situation seems rather messy.

      Comment


        #4
        Point taken jt, but 1 T has signed a new AST. Breach of Contract action is hardly worthwhile if 2 are/have vacated. Best to end orig AST and start afresh.

        The situation seems rather messy
        As with most student Ts

        Comment


          #5
          OK, reading again it is not clear whether the 4 students were on a joint-AST or on 4 individual ASTs. Some elements suggest that it is the former, others that it is the latter.
          OP should clarify.

          Originally posted by saltysocks View Post
          Their deposits are still held by DPS. What are the consequences?
          There is no consequence on the deposits as them subletting during the summer did not cause you any loss.


          Originally posted by saltysocks View Post
          Also damage has been caused and the house isn't clean. I need to deduct money from the girls' deposits who are staying on as well as those that are leaving but then I won't have full deposits for them for next year!
          I guess the way forward depends on joint-tenancies vs. individual tenancies.

          Comment


            #6
            Deal with the original tenancy - i.e. the one which has just ended. The following assumes that you took and protected a joint deposit, not four separate ones. Having conducted a check-out inventory and (if possible) agreed deductions with the lead tenant (or one of the ones who is staying on if the lead T has disappeared), claim those deductions from the DPS and authorise the DPS to return the balance to the lead tenant. He then re-distributes what's left of the money between himself and the other three. Do not get drawn into discussions as to who was responsible for which bit of damage/cleaning - it's all one, to you. Let them sort it out between them.

            If they won't agree to the deductions, you will have to raise a dispute, present your case to the scheme adjudicator and be prepared to support it with evidence such as photographs at check-in and check out, agreed check-in inventory, etc. Get the property cleaned and any damage repaired. Keep invoices/quotations.

            Then take a new joint deposit from the four people who will be living in the property this acacademic year. Contact their parent guarantors if they drag their feet over this; point out that the deposit is a condition of the tenancy (assuming it is) and they are in breach of the contract if they fail to provide one.

            Messing about 'topping up' deposits is a very bad idea. You need to keep the two tenancies totally separate. The two who are staying will I'm sure see the sense of this, too.
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

            Comment


              #7
              MTGs plan of action is the most clear-cut, but you have the problem that if your existing tenants who remain 'forget' or 'can't afford' to pay the new tenancys deposit, there is little you can do to make them do so. If you grant a new tenancy to the "remaining originals" and the 2 new ones, make sure you get good deposits from the new ones before you sign anything, as once the joint tenancy is agreed, yu will be stuck with the remaining originals for the length of the tenancy - deposit or no deposit.

              Obviously, you will conduct a check-out inventory for the originals - which may duplicate as a check-in inventory for the new ones if the appropriate signatures are on it.

              Comment


                #8
                Originally posted by Snorkerz View Post
                MTGs plan of action is the most clear-cut, but you have the problem that if your existing tenants who remain 'forget' or 'can't afford' to pay the new tenancys deposit, there is little you can do to make them do so. If you grant a new tenancy to the "remaining originals" and the 2 new ones, make sure you get good deposits from the new ones before you sign anything, as once the joint tenancy is agreed, yu will be stuck with the remaining originals for the length of the tenancy - deposit or no deposit.

                Obviously, you will conduct a check-out inventory for the originals - which may duplicate as a check-in inventory for the new ones if the appropriate signatures are on it.
                I agree, but would make it very clear to the remaining two and their guarantors that any money returned to them from the original joint deposit needs to come straight back to you accompanied by an appropriate amount of top-up, as their contribution to this year's joint deposit. Advise them and their guarantors that if it is not forthcoming by say two weeks after start of term (their student loans should be in by then), you will pursue all four guarantors for the full deposit because you need to protect it all at one go as a joint deposit. to They don't usually want the embarrassment factor of their friends' parents being involved, so are more likely to cough up.

                To be fair, most students do pay deposits, even if they have already moved in - mainly because they don't understand that the LL can't in practice do much about it if they don't.

                Snorkerz, I suspect that the two new ones may have moved in by now, too.
                'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                Comment


                  #9
                  Originally posted by mind the gap View Post
                  Snorkerz, I suspect that the two new ones may have moved in by now, too.
                  Ah yes, wasn't thinking of the academic calendar! My course doesn't start 'til October.

                  Comment


                    #10
                    Hmmm...and I've just re-read #1 which mentions deposits (plural)...which changes everything somewhat!

                    OP : please clarify : joint tenancy or four individual ones, each with separate contract and depoosit?
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                    Comment


                      #11
                      Originally posted by mind the gap View Post
                      Hmmm...and I've just re-read #1 which mentions deposits (plural)...which changes everything somewhat!

                      OP : please clarify : joint tenancy or four individual ones, each with separate contract and depoosit?
                      Hum, hum, exactly

                      Comment

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