Adding new tenant to existing tenancy and costs?

by Readers Question

10:16 AM, 21st January 2020
About 4 weeks ago

Adding new tenant to existing tenancy and costs?

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Adding new tenant to existing tenancy and costs?

I have a tenant asking to add another person to her existing tenancy.
1. Is there any way other than a new AST along with reference check, right to rent check etc, just like setting up a new tenancy with entirely new tenants?
2. Do I need to have a check out of the old tenant, inventory and checkin of new two tenants done?
3. Can the costs be passed onto tenant from agent for re-protect deposit, inventory, checkin, checkout, right to rent check, setting up new AST etc after tenant fee ban?

Many thanks

Mike



Comments

Chris Sandeman

17:02 PM, 21st January 2020
About 4 weeks ago

You're right, you must treat it as a new tenancy, with reference and right to rent checks on the new person followed by a new AST for a minimum of 6 months which should name the two people jointly as "the tenant".

Unless the inventory is well out of date, or there has been significant damage, you may not need a formal check out/in. Ask the new person to check the inventory themselves and see if they are willing to sign it. If the deposit is already at the maximum 5 weeks rent then the new person would need to pay half the deposit to the other, so that they have an equal share in it. This would avoid having to do anything with the existing protected deposit.

Because the existing tenant is effectively asking for early termination you may be able to pass on some costs - your agent should be able to advise you about this.

Kate Mellor

15:14 PM, 22nd January 2020
About 4 weeks ago

Reply to the comment left by Chris Sandeman at 21/01/2020 - 17:02
I’m not sure you’re correct about the deposit actually. It’s my understanding that as there has been a material change in the terms of the tenancy (change to the tenants) the deposit must be redeemed and reprotected. That is what the DPS advised me when a joint tenant left and I issued a new tenancy to the remaining tenant anyway, even though the tenants had resolved the deposit amongst themselves.

Jim Fox

16:13 PM, 22nd January 2020
About 4 weeks ago

Reply to the comment left by Kate Mellor at 22/01/2020 - 15:14
Kate Mellor, I believe youre correct re having to redeem the deposit and then set up a new one.
I had the same advice from the DPS.

Chris Sandeman

5:06 AM, 23rd January 2020
About 4 weeks ago

Reply to the comment left by Kate Mellor at 22/01/2020 - 15:14
Thank you for the correction - just as well I don't hold the deposits. Deposits can either be passed to one of the three government approved companies (TDS, DPS or MyDeposits) or must be insured by one of them if the deposit is held by the landlord or agent.


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