Confusion about HMO definition?
4 years ago | 4 comments
Can I (or should I) issue a new AST to include a permitted occupant?
12:01 AM, 20th March 2023, 3 years ago
5
Hi everyone, A few months after my tenant signed a 12-month AST (in 2017) I agreed in writing that his adult daughter could become a permitted occupant with the intention of issuing a new AST and her becoming a joint tenant when the original tenancy expired.
This, however, I neglected to do. No new agreement was signed and the original agreement became a periodic tenancy.
From what I read on this forum it seems that in the event of the tenant deciding to move out, or perhaps dying, I am exposed to the risk of having a permitted occupant in the property with no obligation to pay the rent, or indeed any obligation to vacate.
Consequently, I am looking at my options for rectifying the situation and wonder if anyone has any suggestions?
I have a good relationship with the tenant, he pays the rent on time and looks after the property as if it was his own.
Many thanks,
Mike
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Member Since January 2020 - Comments: 559
11:30 AM, 20th March 2023, About 3 years ago
The best rectification would be to agree a new AST with both parties named as joint tenants. In doing so, make sure that you do full compliance.
The issue of permited occupiers is a bit vague and of limited value. Whether or not you have agreed for daughter to reside at the property, if dad dies or moves, he could leave her behind and you have no contract with her. This could make it more difficult, although not impossible, to unravel.
Member Since August 2021 - Comments: 307 - Articles: 1
12:29 PM, 20th March 2023, About 3 years ago
As Graham says, a new AST is the way to go and must be accompanied by all the supporting compliance.
It is worth noting that unless you specify that permitted occupiers over the age of 18 are subject to completion of Right to Rent checks, you leave yourself open to a fine, or even 5 years as a tenant of the Crown.
Member Since August 2016 - Comments: 1190
1:08 PM, 20th March 2023, About 3 years ago
The daughter is a permitted occupier as you’ve agreed to this. Can’t see it as a problem she’s clearly not a tenant and would have no rights to stay in the property should the tenant leave or die.
Member Since October 2020 - Comments: 1173
5:18 PM, 20th March 2023, About 3 years ago
Another option would be to do nothing. The PO has no tenancy rights, (assuming you’ve not accepted any rent from her) and would not acquire them if the tenant left. She should be relatively easy to remove, compared to a tenant that is. If you make her a joint tenant and her father dies, then it will much harder to remove her if she can’t afford the rent.
Member Since August 2021 - Comments: 307 - Articles: 1
6:14 PM, 20th March 2023, About 3 years ago
The death of the tenant will not end the tenancy, as it will continue under his estate. Under normal circumstances, the executor or administrator would want to surrender the tenancy at the earliest opportunity. This is unlikely in these circumstances, so you will have to serve notice, at the very least.