Tenant Unfortunately Made Redundant

by Readers Question

12:22 PM, 10th March 2015
About 4 years ago

Tenant Unfortunately Made Redundant

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Tenant Unfortunately Made Redundant

Tenant Unfortunately Made RedundantI have a tenant on a 12 month AST which ends Mid July, they are a nice couple with a baby.

A few months ago, they made me aware that they may not sign-up for another year and may relocate back to their parents, which was fine. I have now just received a note that one of them has unfortunately been made redundant and that they will be relocating to their parents. However, no dates set.

What we have received is not a written notification that they want to end the tenancy, just a statement of their unfortunate financial position.

What would you say the next steps are?

Naturally, I am happy for them to find a suitable alternative tenant or complete the tenancy in the final months. My concern is whether they are trying to get out of a months payment at the end of the contract.

Any views/thoughts?

Many thanks

John Hart



Comments

Mark Alexander

12:30 PM, 10th March 2015
About 4 years ago

Hi John

This sounds more like a cry for help than a notice to quit, I think you are in a strong position if you play this right. If you don't then you could be facing a rent arrears issue.

My suggestion is that you call your tenants, thank them for their letter, offer sympathy and then offer to meet with them over a coffee to discuss some ideas you have to help them. My experience is that most tenants go for this.

When you get there build rapport by discussing their predicament with compassion and ask them whether they would like to move out sooner rather than later. I suspect they will say yes.

Offer not to hold them to serving their notice on the basis that they help you to minimise your losses by agreeing to show potential new tenants around the property. Then, if they agree, get your property listed with LettingSupermarket.com ASAP - see >>> http://www.property118.com/letting-supermarket-amend-pricing/68829/ and also my latest blog post >>> http://www.property118.com/60-viewing-requests-19-viewings-today-record/72854/

On move out day I recommend you have them sign a Tenancy Surrender Agreement, especially if they have not given or served formal notice - see >>> http://www.property118.com/surrender-tenancy-agreement/67939/

I hope this helps, please report back and let me know how you get on.

All the best - Mark
.

Paul Thomas

12:55 PM, 11th March 2015
About 4 years ago

Perfect advice from Mark.

It's always best to talk and allow them a simple way out. No point holding out for every penny. It works well for both parties.

Graham Durkin

13:49 PM, 14th March 2015
About 4 years ago

John, if the facts are correct I would be sending them straight to the council and applying for housing benefit ,it can be backdated to his last paypacket in some cases. as stated its very important to dicuss the options even if its just keeping them till july with H/B. This will give you ample time to then plan ahead and with the financial support from the council your tenants will then know that there rent is covered and can leave at the end of their tenancy.

John Hart

9:13 AM, 21st March 2015
About 4 years ago

Reply to the comment left by "Graham Durkin" at "14/03/2015 - 13:49":

Thank you all for that great advice. Here is the updated situation: I was away abroad at the time of post and on my return my partner gave me the full details. It was slightly more complicated in the fact they were wanting to leave the contract 3-4 months early and therefore complete the last payment in just one week! This has now been rectified as we've agreed that they can surrender once finding a suitable alternative tenant. They will pick up the costs of finding the tenant. Apparently the estate agency has found some options. Thank you all for your input.

Mark Alexander

9:38 AM, 21st March 2015
About 4 years ago

Reply to the comment left by "John Hart" at "21/03/2015 - 09:13":

Thanks for the update John and welcome home.

Two things you should seriously consider ....

1) Tenancy Surrender Agreement - see >>> http://www.property118.com/surrender-tenancy-agreement/67939/

2) Costs of re-letting and ongoing management - see >>> http://www.property118.com/letting-supermarket-amend-pricing/68829/
.

John Hart

14:24 PM, 24th March 2015
About 4 years ago

Thanks Mark. Very useful information - ive downloaded the Surrender Agreement and will certainly be using that. Well worth the small £5 contribution.


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