Tenant left without serving a notice?
3 years ago | 15 comments
New tenant decided to not proceed with tenancy on start date?
12:01 AM, 10th March 2025, 1 year ago
14
Hello, I would welcome any thoughts on this situation.
An agreement was reached with a tenant applicant after he had viewed the flat. The applicant signed an AST agreement to commence a 6 month rental on 9th March. He had paid one weeks holding deposit and also paid a deposit of 5 weeks rent, which has been registered with the DPS.
Today he visited with his partner. She had not visited before and didn’t seem enamoured with the flat. The guy then voiced concerns about the locking mechanism of one of the windows, claiming it was not secure, so I said that I would get a contractor in to fix it. However, he said he was no longer happy with the security of the flat, and wouldn’t be moving.
No rent has been paid. The keys were not handed over to them. All documents have been correctly provided and registered etc. The pulling out of these tenants has now elongated my void (I had other applicants who were rejected in favour of this tenant).
My thoughts are as the agreement was signed, the deposit registered, and a holding deposit has been taken I can offset the deposits until the flat is re-rented or the deposit money has run out. However, did the agreement start? Did I provide any consideration i.e. keys and access? Or was my consideration simply reserving the flat until the move-in date?
I would welcome any thoughts on my rights here.
Thanks,
Ashley
Tags:
ast agreement, holding deposit rules, rental deposit rights, tenancy contract dispute, tenant withdrawal
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Member Since October 2020 - Comments: 1137
3:52 PM, 11th March 2025, About 1 year ago
I am not sure whether a contract has been entered into if they haven’t paid the first month’s rent as presumably required by the agreement. I’m not sure if the fact that they paid the deposit would count. It may take a judge to decide, but you could probably get a quick legal opinion from a solicitor.
If there is a contract then you can hold them to the payments, but once they formally attempt to withdraw, you would need to try to mitigate your losses by re-letting as soon as possible. There is no tenancy as they have not yet taken possession, so a written letter stating they no longer wish to rent the property should suffice.
If its not 100% clear that there is a contract, then I think you can make a case to keep any holding deposit, but would have to just let them go and ask the deposit scheme to refund their money as soon as the scheme rules allow.
Member Since June 2021 - Comments: 80
7:36 AM, 19th March 2025, About 1 year ago
If youre a member of NRLA call them and ask for advice. If not, then tell the tenants that you will try to find new tenants asap and refund any balance from the deposit money
Member Since November 2022 - Comments: 120
10:29 AM, 25th March 2025, About 1 year ago
Reply to the comment left by Kate Gould at 11/03/2025 – 11:35
“You have to mitigate your loss, so a court would not be impressed if you try to say you are entitled to keep the flat empty and claim the full 6 months’ rent from him.”
Not strictly correct. Rent that is due contractually is a debt, not a claim for damages, and there is generally no duty to mitigate a claim in debt.
Member Since October 2020 - Comments: 1137
11:19 AM, 25th March 2025, About 1 year ago
Reply to the comment left by Julesgflawyer at 25/03/2025 – 10:29
Whilst that may be so, I dont think there claimant can then expect damages can they?
“If a claimant doesn’t mitigate its loss, it is not entitled recovery of damages which could have been reasonably mitigated.
In the law of damages, the claimant is taken to have mitigated its loss, even if it doesn’t.”