Removing a named tenant from an agreement/adding a new one - newbie landlord!

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    Removing a named tenant from an agreement/adding a new one - newbie landlord!

    Hello

    First of all, thanks to anyone who takes the time to read this and I hope I make sense.

    I have a property that we rent out and is now on a rolling contract (monthly) which I'm happy with as the tenants don't want to move out - the main two - whereas two of the other tenants are moving out. It's not a joint Multiple Occupancy house, it's just named tenants on the lease and they split the total monthly rent how they see fit between the rooms. I don't care, I'm happy I get the rent each month, from one person's account, and the rest is up to them.

    One tenant gave notice post-lease period, which is fine, but someone else wants to move in.

    Another tenant is also leaving and another tenant is lined up to move in.

    Would it be prudent to draw up another lease agreement (min. 6 months) and have them all re-sign? I think that this would mean I'd have to return their deposits from the deposit scheme and then re-start it again?

    I was also wondering what the implications are if only the main couple have their name on the lease for rental and then it was up to them who takes the other two rooms?

    Sorry for such rubbish questions, I know I sound like a total airhead on this one, but I've looked up all the legal terms and contracts and..and..and.. and I just can't see where a problem would lie in signing off one person from the current contract, putting an addendum in with the names of the two new tenants, and keeping it as a rolling monthly contract? The tenants are amenable to any option and I just want to keep it simple as possible for all involved.

    Thanks for your help and again, apologies for being dumb.

    #2
    Originally posted by NewbieLandlady View Post
    It's not a joint Multiple Occupancy house, it's just named tenants on the lease and they split the total monthly rent how they see fit between the rooms. I don't care, I'm happy I get the rent each month, from one person's account, and the rest is up to them.
    It sounds very much as though it is a joint tenancy.

    Did all the Ts sign individual agreements for their particular rooms, or are all four named on one tenancy contract?

    Until we know that, we can't really help.
    '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

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      #3
      If they are all on the same contract, then a deed of assignment would keep the existing periodic tenancy ongoing and (providing the deposit lead tenant wasn't leaving) not require any action with regard to the deposit.

      In effect, the document transfers the current tenancy from "A, B, C & D" to "A, B, E & F".

      Comment


        #4
        Originally posted by mind the gap View Post
        It sounds very much as though it is a joint tenancy.

        Did all the Ts sign individual agreements for their particular rooms, or are all four named on one tenancy contract?

        Until we know that, we can't really help.
        All 4 are on the one tenancy agreement, it's not individual rooms. Thanks for answering so quickly!

        If they are all on the same contract, then a deed of assignment would keep the existing periodic tenancy ongoing and (providing the deposit lead tenant wasn't leaving) not require any action with regard to the deposit.

        In effect, the document transfers the current tenancy from "A, B, C & D" to "A, B, E & F".

        Perfect - thank you!

        Comment


          #5
          Thank you both for such fast responses - obviously I don't have enough posts to view signatures and links but I now know the correct document I need.

          Brilliant! I'm very, very grateful for your help

          (and been pottering around the site, tenantVERIFY etc. all is coming in very handy indeed...WHY didn't I join sooner?)

          Comment


            #6
            You're welcome!
            '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
              Originally posted by NewbieLandlady View Post
              I have a property that we rent out and is now on a rolling contract (monthly) which I'm happy with as the tenants don't want to move out - the main two - whereas two of the other tenants are moving out. It's not a joint Multiple Occupancy house, it's just named tenants on the lease and they split the total monthly rent how they see fit between the rooms. I don't care, I'm happy I get the rent each month, from one person's account, and the rest is up to them.

              One tenant gave notice post-lease period, which is fine, but someone else wants to move in.

              Another tenant is also leaving and another tenant is lined up to move in.
              If you mean that a tenant has given written notice to quit, and gave it after the fixed term expired, then his notice ends the whole joint tenancy at notice expiry. Of course, you'd then be free to grant a new joint tenancy to whoever you like, but it would be a brand new tenancy, and require the deposit to be refunded/repaid/reprotected.

              Comment


                #8
                Ah. Well, fortunately the tenants are being understanding as one has moved out and we're re-signing a new joint tenancy at the end of the current monthly notice period. It's all so complicated - and annoying! I wish I'd just done all the research prior to saying "yup, one can move out" as everyone was happy with that.

                Next time I know better! I don't get why the deposit needs to be refunded/repaid/reprotected when it's the same lead tenant and I could give the deposit money from new tenants who are wanting to move in directly to the old ones that are moving out but hey-ho!

                Thanks again. It'll be all sorted VERY soon.

                Comment


                  #9
                  Originally posted by NewbieLandlady View Post
                  I don't get why the deposit needs to be refunded/repaid/reprotected when it's the same lead tenant and I could give the deposit money from new tenants who are wanting to move in directly to the old ones that are moving out but hey-ho!
                  It needs to be refunded etc, because the new tenancy will be a brand new tenancy, with a different tenant and absolutely no connection to the current tenancy. The joint tenant Tom+Dick+Harry is, legally, a different tenant to Tom+Dick+Jane, (as different as Rachel+Sophie+Maria).

                  The deposit is currently held against Tom+Dick+Harry's tenancy. When that tenancy ends they are entitled to a refund of their deposit. If you grant a new tenancy to Tom+Dick+Jane, then they pay a new deposit in respect of a new tenancy, and the deposit must be protected.

                  Never, ever, tell a new tenant to pay their deposit to an outgoing tenant. It's a recipe for confusion and disaster. Tenants pay deposits to landlords, not to tenants.

                  Comment


                    #10
                    Others will correct, but I think you should check the HMO / Landlord licensing status of the area.

                    If your Local Council has Selective / Additional Licensing in place in that area then 4 non-related tenants may make it Licensable.

                    If that is the case, it is very important to apply for one.

                    While I'm at it, the Deposits are protected in an approved scheme, and the Prescribed Information has been served, hasn't it?

                    ML
                    Refer Mad Regulators to Arkell vs Pressdram.

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