Someone else wants to move in – tenancy agreement?

by Readers Question

11:52 AM, 22nd August 2014
About 4 years ago

Someone else wants to move in – tenancy agreement?

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Someone else wants to move in – tenancy agreement?

I have 2 existing tenants on an AST let in one of my properties. The tenancy runs on a 12 month contract basis and is due to end on February 6th 2015.  Someone else wants to move in - tenancy agreement

The present tenants are currently 6 weeks behind in their rent and have written to me explaining some temporary money difficulties. However, they have also said  they have a friend who would like to move to live with them and subject to references etc the target date would be September 21st.

Now just putting the complications of rent arrears aside for as moment, where do I stand and should I agree for an additional tenancy, BUT with only less then 5 months remaining for the original tenancy. That would of course include the added (new) tenancy.

Are there any key issues and/or legal factos that I must look out for in such situations? For example, can any new and added tenant say ‘you can’t ask me to leave only after 5 months into a tenancy agreement.

For the record, it is most likely that I will be issuing a section 21 (if not section 8 depending..) as per normal in early December, 2 months before the expiry of the 12 month agreement.

My concern here is the new tenant that I might take on next month.

Thanks

Saul



Comments

Mark Alexander

11:54 AM, 22nd August 2014
About 4 years ago

Have you considered granting your tenants permission to take in a lodger?

Subject to referencing and them getting the lodger to sign a lodgers agreement with your tenants which is approved by you of course.
.

saul jacob

13:30 PM, 22nd August 2014
About 4 years ago

Mark,
No I have not even come close to that. There seem to be several possible options however I do of course need to make sure I do not get a smart riposte from any of my tenants when it is time for all of them to leave at my behest. I'll look into it - many thanks,

Farah Stehrenberger

14:25 PM, 22nd August 2014
About 4 years ago

Hi Saul
If the new tenant is going to share all the facilities, you could grant your existing tenants right to sub let under a license, not a tenancy agreement.

Ideal option would be:
Not to agree to a new tenant (lodger), your tenants are in 6 weeks arrears, I would wait for a couple of weeks and issue proceedings under s. 8 asap.

Mark Alexander

14:40 PM, 22nd August 2014
About 4 years ago

I didn't mention this before because Saul asked us to disregard the rent arrears.

However, it may be possible to serve section 8 now, this depends on how the arrears have accrued.

If the tenants have missed the last two monthly rent payments then they were technically two months into arrears one month and one day after the first missed payment.

Farah and I are definitely both on the same page with regards to issuing a licence. Please make sure the licence is issued by the tenants, not the landlord, otherwise the Courts will interpret the licence as a tenancy on the basis that the landlord does not live in the property or provide services such as changing bed linen and towels, food and other cleaning services. A lodger agreement is a form of licence.
.

saul jacob

8:27 AM, 23rd August 2014
About 4 years ago

Thank you again. As the possible addition to my property would ideally like to move in late September, any agreement would be totally dependant on the full rent arrears being paid up - they would be 2 months behind from September 7th.
My real goal here is damage limitation. They will need to leave either on the expiry of their tenancy, or possibly well before that.

Recardo Knights

10:52 AM, 24th August 2014
About 4 years ago

Hi Saul
Go with your gut feeling with the existing tenants, if you feel they are messing you around let them know unless the arrears are made up an eviction notice will be served. Make it clear the problems that will cause with a new tenancy elsewhere, as no decent landlord reference and possible CCJ will effect their credit.

If they seem to be honest people but on hard times give them permission to take the logger or loggers. The extra income to them will allow them to pay the arrears and stay ahead.

If eviction notice still has to be served later the new lodgers may want to take out a tenancy with you so no void period.

I recently had a similar experience, a couple had parted ways and the staying tenant asked to let someone else replace the leaving partner. He was not in arrears but with one income his budget was stretched I suggested his mate should be a lodger as the tenant had moved on to a periodic tenancy.

His mate moved in 5 months ago he knows he can leave at any time with no problems. The tenant can meet the rental easily as it is shared, and is responsible for the lodger (as I hold the damage deposit), and I am happy that the tenant is still on a periodic tenancy.
If the tenant decides to leave in the future I will ask if the lodger wishes to take over the tenancy as I now know him I person.


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