Tenant in arrears wants to leave before term expiry

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Tenant in arrears wants to leave before term expiry

    Hi People
    Once again I need some advice. I have a tenant that is 2 months into a 1 year agreement with no brake out clause. Today he was one week late with his rent, upon calling him he informed me that he won't be paying it and will be moving out this Sunday and that I can keep the deposit (six worth of rent).

    This leaves me in a hole as I paid the letting agent a finders fee and admin (setting up the tennency agreement) for a tenant for one year which obviously will now be 2 months. Is there any way I can recoup some of this back from the agency.
    Also how do I go about recouping some money back from the tenant, he's moving out with very little notice one week in arrears and breaching the contract. Should I just take the the full deposit and be grateful he's gone (so long as he does move out this sunday) or am I entitled to take him to the small claims court (BTW if so how do I go about doing this).
    I do have rent cover but will they pay out if it does wind up being only one week and they do move out.
    I'm currently refusing to take any deposit or keys as I'm assuming this act would deem me being happy with them moving out early.

    Thanks in advance for any advice

    Cheers
    Bloyer

    #2
    - You should be able to claim the depsoit for loss of rent, however you will need to apply for it correctly through your Tennancy Depsits scheme procedure (which one you in by the way?)

    - The tenant is in clear breach of contract and you should;

    a) attempt to mitigate your losses - i.e. get the property back up for rental etc,

    b) claim through small claims.

    Lets hope they move out as this will make life alot easier for you, otherwise your going to have to start possesion procedings etc. It would be useful if you could get in writing from the tenant that they dont intend to stay in the property etc past Sunday.

    Comment


      #3
      Hi Planner

      I used the DPS one (depositprotection.com). Out of curiosity how much can you claim through small claims as currently I only have 2 months rent for a 1 year agreement. Also if I go through small claims can I also claim time I spent on this for exmaple I'm an I.T contractor if I have to spend a day working on this and can prove it (i.e. if I have to take a day off to go to court) can I claim compensation for that on the daily rate I charge my clients


      cheers
      Rob

      Comment


        #4
        £5000 is the limit (im assuming your in England or Wales and not scotland!).

        I think you might be hard pressed winning a claim for the full 10 months.

        I think the best approach would be hold off on starting proceedings until you know the definate total it has cost you.

        I would be claiming reletting fees (including advertising) and those agents fees you paid.

        You cant put a figure on the rent until you relet it. So if you loose 2 months rent before you relet then i would be claiming that for example.

        You do really need to get in writing that the tenent is ending the tenancy as even if they move out on Sunday, theres still an AST in place, and you cant just walk in willy nilly. If they wont sign anything (the name escapes me) to say this then you are going to have to claim for possesion. Someone will be along soon to agree/disagree with this and tell you how to do it soon. Best of luck.

        Comment


          #5
          There has been a court case recently concerning fulfillment of a commercial rental contract in that the landlord does not have to mitigate his loss anymore (previously it was considered he might have to do so); the main reason being the landlord might have to accept a lower rent if he was to re-let in a difficult economic period (like now!). This is likely to apply to private residential tenancies too!

          If you do manage to re-let the property you can still go through the SCC for any debt incurred by the ex-occupant. Remembver until the keys are returned then you can't re-let as the tenant still has a valid contract, but he will still be liable for rent until he does or until you accept surrender.

          What you do about obtaining the deposit that is held within the tenancy deposit scheme I don't know.
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

          Comment


            #6
            Cheers Guys for your help and advice, just so I got this clear in my head are what you both saying is that its best to get the keys back (so long as he does move out on Sunday) then get the property rented out again that way I will have a definitive figure of how much he owes in lost rent plus the associted finders fee/advertisements/tennancy agreements - then take him to the small claims court with the actual figure I want.


            Cheers

            Comment


              #7
              Thanks, for your advice. Somethings i realised i forgot to mention that i thought i should bring up. My house was contracted to a company and not an individual. Also he reckoned that he could get out of the contract under the following section of our contract.

              When i read the section it just reads to me that i can't charge a unreasonable amount for Administration work. Is that right ??

              4 - Rent and Charges
              4.3 That in the case of a breach of the terms of the tenancy by the Tenant, a reasonable administration charge may be made in addition to the costs of any remedial work, in order to compensate the Landlord of Agent his reasonable expenses.

              Comment


                #8
                Originally posted by Paul_f View Post
                There has been a court case recently concerning fulfillment of a commercial rental contract in that the landlord does not have to mitigate his loss anymore (previously it was considered he might have to do so); the main reason being the landlord might have to accept a lower rent if he was to re-let in a difficult economic period (like now!). This is likely to apply to private residential tenancies too!
                Doesn't make much sense to me. Surely it's better to re-let at a lower rent if needs be and charge the old tenant for the top up. That's better than charging him the whole rent as the property is empty isn't it?? Then again what if it re-lets for more rent, does that come off the old tenants bill owed?

                Originally posted by Paul_f View Post
                If you do manage to re-let the property you can still go through the SCC for any debt incurred by the ex-occupant.
                Do you literally mean ANY debt or should it be reasonable debt? What about the case where the agent charges say 10% of the rent for the whole contract upfront even for renewals and then charges the same again for the new tenant? This means the agent has been paid twice, once by the old tenant for the remainder of his contract to reimburse the LL and again by the LL out of the new tenant's rent for the same period. Is it OK the charge the old tenant like that even though the agent's fee isn't simply for finding the new tenant? Only that's what's come up several times recently.
                ~~~~~

                Comment


                  #9
                  Just wanted to say thanks for everyone's help on this. In short my bro and I told the tenant that if he wants early termination of the contract he can pay the fee's that we paid the LA (tenant find plus contract) plus half of the remaining months out standing (10 months were left on the contract). After some threats from the tenant about going to court and/or declaring himself bankrupt he finally relented gave us 5 months worth of rent plus all the LA expenses we paid out. The house was given back in the exact same condition and is now back on the market.

                  cheers again

                  bloyer

                  Comment

                  Latest Activity

                  Collapse

                  Working...
                  X