Deposit Dilemma with tenant asking to stay longer?

Deposit Dilemma with tenant asking to stay longer?

14:20 PM, 3rd February 2015, About 9 years ago 46

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I have a tenant who has handed in her notice and is due to leave this Friday. She has now informed the managing agent that she can’t move out as the house she is moving into is not available until 16 Feb. Rent has always been paid on time.

She is willing to pay rent for the extra days she is there, but I have a bad feeling about this as if her house falls through then it could be longer than a week. There is no new tenant moving in as I am selling the property.

My questions are:

  • As she handed in her notice what does this extra rent constitute?
  • Is it in relation to the same tenancy or not?
  • If not will it cause me a problem to accept it?
    What is my position with the deposit?
  • It is under a deposit scheme, but does this extension in leaving date (which I have not said yes to yet) cause me to request a further deposit?

A section 21 was issued at the time the tenancy was signed and I’m wondering if I should start lining up any proceeding in case this all goes to pot.

Thanks

Sharmeladelayed


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Comments

Michael Barnes

21:43 PM, 3rd February 2015, About 9 years ago

I believe that if you agree to the tenant staying beyond her notice period, then you are creating a new tenancy.
That means you will not be able to get her out with a S21 notice for 6 months.

I would be inclined to talk to her, tell her that in law she has ended the tenancy on the agreed date, you cannot agree to her staying beyond that date as that would create legal difficulties for you, and if she stays
a) you will be entitled to payment for overstaying (in law you are entitled to double rent, but you do not have to claim it)
b) you will not accept any payment in advance from her (for your information, to do so would almost certainly create a new tenancy)
c) if you need to take legal action to get her out, then you would seek to recover costs from her
d) It is your policy to allow two weeks to rectify a breach of terms before taking legal action.

Obviously, until the property is returned to you, you cannot determine what deductions from the deposit are required, and therefore you cannot do anything to return part or all of the deposit to the tenant until she leaves.

In practice, most tenants are decent people who will depart when their next property becomes available and pay you all you are owed.

Ray Davison

21:48 PM, 3rd February 2015, About 9 years ago

Reply to the comment left by "Rosalind " at "03/02/2015 - 21:23":

Hi Rosalind,
Can you remind me - and others who have commented - what the law is re double rent, when and why it is due and a little about how you implemented it please.

Ray Davison

21:51 PM, 3rd February 2015, About 9 years ago

Reply to the comment left by "Michael Barnes" at "03/02/2015 - 21:43":

Michael,
Good post but just to correct you on one matter. The new tenancy would not give a new right of occupancy for 6 months. This only applies from first occupancy so you are able to offer a one month tenancy if you wish. You would need to give 2 months notice with your S21 though and of course handle the deposit correctly.

Dr Rosalind Beck

22:37 PM, 3rd February 2015, About 9 years ago

Hi Ray. I always forget what it's called so I just googled it. It's this:

s18 Distress for Rent Act 1737

What we did was when we were in court to get possession and, as often happens, the tenant didn't even turn up, we told the judge about the law (which Adrian at the Guild of Residential Landlords had told us about), the judge went off and looked it up, came back excited to learn something new and granted us double rent for the period the tenants had outstayed their welcome. Instead of being awarded say, 1,000 pounds we were awarded maybe 1,700 (I can't remember exactly). We then got an attachment of earnings on the male ex-tenant's salary and eventually it started arriving as £50 cheques each month. The extra £50s towards the end of the period were particularly pleasurable to receive (especially as the female tenant had screamed at us that we'd get nothing as she and he had lost their jobs! -this was a lie).

JohnCaversham

9:04 AM, 4th February 2015, About 9 years ago

Reply to the comment left by "Ray Davison" at "03/02/2015 - 21:51":

Hi Ray,

I must admit i'm not up to speed on these technical matters, so would you explain why a second S21 would be required if the tenant is allowed to stay on for a short period? As, should the tenant overstay the agreed extension date would it not be a case of the original S21 as previously served simply being presented back to the courts for enforcement? Thus no second S21/2 month wait required?

Rgds John

Ian Ringrose

9:33 AM, 4th February 2015, About 9 years ago

John,

The tenancy end on the date the tenant gives in their notice. If any rent is accepted, a NEW tenancy is started.

sharmela Jansari

9:41 AM, 4th February 2015, About 9 years ago

Comment from the Managing agent....

As things stand, although you served notice on the tenant to expire 5th February and the tenant too gave notice to leave on 5th February, with the tenant staying in the property the tenancy is still active and will be until the point that the vacant possession of the property is obtained. There are no complications with the deposit either. It is registered with The DPS and we are complying with the deposit requirements. So although the current situation isn't ideal, everything is still above board from ours and your side.

Ray Davison

10:07 AM, 4th February 2015, About 9 years ago

Just about what you would expect from many agents who are not properly up to speed with the legal aspects!

Sam Addison

10:11 AM, 4th February 2015, About 9 years ago

Reply to the comment left by "sharmela Jansari" at "04/02/2015 - 09:41":

That sounds good to me although in view of earlier comments I would not take further rent until it is clear the tenant is moving out so that the correct amount can be paid. If she has been a good tenant and you have been a good landlord there should be no problems over this.

Ray Davison

10:11 AM, 4th February 2015, About 9 years ago

Reply to the comment left by "Rosalind " at "03/02/2015 - 22:37":

Thanks Rosalind,
Do you know if this only be applied where you wish the tenant to leave and they won't go (ie you have issued them with a S21 which they have ignored) and not where you mutually agree to an 'extension' as is possibly the case in this scenario?

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