7 months ago | 9 comments
We operate joint and several student HMO tenancies, which we typically sign up in Jan/Feb for the next academic year beginning in July. We don’t do holding deposits, but we do ask for the first month’s rent upfront to secure the tenancy, payable as soon as the agreement is signed.
Under the new Renter Rights Act, the tenant can give two months’ notice at any time, and in order to be compliant, this is already featured in our contracts. We have assessed this as a relatively low likelihood scenario, as our houses are all 4-7 tenants, and so all would have to give notice at once. However, this has just happened!
A group who had fully signed up for a tenancy beginning in July have given notice that they wish to cancel the agreement and want an immediate refund of the advance rent paid. It seems to me that under this new regime, this is perfectly valid, they can just cancel any agreement entered into without any kind of penalty or even obligation to find replacements, as long as they do it in concert and it is at least two months to go, plus the rent period.
I would be grateful for any views on this. Do we have to pay the July rent back immediately and in full? (I presume yes). If we had taken holding deposits, could we keep them in such circumstances? (I presume no). It strikes me as particularly unfair if a tenant can effectively tear up any rental agreement on a whim and exit the tenancy before it has even begun, and leave us holding the baby without any kind of consequence or obligation.
Any advice would be appreciated.
Thanks,
Dorian
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Member Since October 2022 - Comments: 402
9:54 AM, 23rd February 2026, About 2 months ago
Yes it’s unfair. No it’s not worthy the stress of arguing. Msyb6offer 50%. If they insist give it all back
Member Since July 2016 - Comments: 169
10:28 AM, 23rd February 2026, About 2 months ago
I am a student landlord. I feel these people have done you a favour by bailing on the contract giving you plenty of time to find replacements. In addition by signing a contract so early I believe you would have lost the right to evict them at the end of their tenancy which is a provision for student LL in the RRA. Clearly they are not committed. Better they pull out now than give notice after term starts. In your shoes I would refund any money they have paid minus any significant costs and focus on getting another group. It might be worth trying to understand why they withdrew in case there are lessons to be learned from your side.
Member Since May 2014 - Comments: 89
10:43 AM, 23rd February 2026, About 2 months ago
My understanding is that they can’t give notice in the first 4 months of the tenancy, and then they have to give two months notice…so all contracts are effectively a minimum 6 months.
And it only takes one party to give notice. One student can effectively leave the others having to leave, unless they renegotiate with the LL.
In this case I’d be glad they’ve given you notice when you can still get replacements. Good luck!
Member Since November 2017 - Comments: 5
1:05 AM, 5th March 2026, About 2 months ago
Thanks to those who replied above. We decided to refund them in full, without quibbling, pretty much straight away, as I can see no legal grounds even to charge them a £50 admin fee (such as the one permissible for agreement variation under the Tenant Fees Act). The fact is they can give notice *at any time*.
With regards the last comment, I can’t see anywhere that they can’t give notice within first four months. All I can see is “at any time”. Can anyone provide a citation?
Thanks again
Member Since January 2016 - Comments: 236
6:20 AM, 5th March 2026, About 2 months ago
Reply to the comment left by Dorian at 05/03/2026 – 01:05
They’re obviously flaky. Do other landlords a favour and contact all the obvious letting agents to warn them. I had a group that pulled that stunt on me a few years ago and did just that. I like to think that I did someone a favour.