Two existing tenants are leaving – legal issues?

Two existing tenants are leaving – legal issues?

0:01 AM, 14th April 2023, About A year ago 11

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Hello, I currently have a leased property which, since Nov 2021, has been occupied by a family of four adults on a 12-month AST. Payment of rent has never been an issue and they keep the property reasonably clean.

They have just notified me that from June of this year two of the adults will leave, but the remaining couple wish to stay, and be the only names on the contract.

I’m quite happy to provide an Addendum to the existing contract stating as much and confirming that the rent remains the same, which I will request they sign.

But I’m just wondering if there is anything else I should do from a legal and compliance perspective.

Any advice would be greatly appreciated.

Thank you,

Ian


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Comments

LordOf TheManor

10:33 AM, 14th April 2023, About A year ago

Hi Ian
If I were you, I'd ask the tenants wanting to remain to agree to be re-referenced to check their affordability of the rent. I would do that before I agreed anything further.
A lot could have happened financially in the two years since you took the couples on so best to check whether it's been for the good or otherwise.
If the rent is unaffordable for the two wanting to stay, you can decide what's best for you to do from there - before you do - or promise - anything else.
Lord

RoseD

10:53 AM, 14th April 2023, About A year ago

Good advice from Lord of the Manor. The existing tenants rent is going to double plus additional outgoing expenses so affordability could be an issue
I would consider a new AST for the remaining tenants in line with credit checks.
You haven't said how many bedrooms or what the living circumstances are so assuming this is not HMO as that obviously goes into different dynamics.

Reluctant Landlord

12:10 PM, 14th April 2023, About A year ago

yes make sense to re check affordability status on the remaining two. If all is ok I'd be tempted to offer a new contract and start a fresh with just those two names listed on the AST.

Also means you can up the deposit to be in line with 5 weeks rent total (if the rent has increased since they first moved in).

Despite the past, think of the future going forward. You may want to offer just a 6 month AST this time round instead of a fixed 12 month. If they want to stay on after 6 months it can auto go into rolling, but with the threat of S21 and all the other stuff coming up, you may not want to be tied to 12 months? Worth considering. Unfortunately the government making it difficult for any LL not to think of the negative when thinking about a new tenant/contract as they are reducing out rights to control out own properties at such a pace....

David

13:53 PM, 14th April 2023, About A year ago

If they're all joint tenants then they're indivisable. You cant just release some from the tenancy. You either have to leave the legal documentation exactly as it is, (which is what I would probably do), or seek to end the tenancy for everyone and start a brand new tenancy with the remaining couple, (if they can afford it as said).

Freda Blogs

16:01 PM, 14th April 2023, About A year ago

Assuming all four have entered into a joint and several tenancy, there is no reason that you should assume additional risk by releasing two people from the agreement, relying on the remaining two for the whole of the rent.
You could leave the tenancy as-is with all four remaining responsible to you for the full rent, and they can come to an informal arrangement between themselves as to how they manage the financial arrangement.
Your cooperation really depends on how good you think the remaining two tenants are; if affordability of the whole rent is marginal, a few months from now they could be asking to allow other people to move in, and you are left with another headache to address.

DAMIEN RAFFERTY

17:54 PM, 14th April 2023, About A year ago

If you start a new tenancy please make sure you reprotect the deposit? Send the Prescribed information and latest How to Rent booklet.
Does your tenancy agreement state that you can serve all documentation via email.
Same with EPC. EICR, GSC etc

Crossed_Swords

10:26 AM, 15th April 2023, About A year ago

You can provide a tenancy variation for which you can charge a reasonable fee (say £50) as it not a prohibited charge under the tenant fees ban. It does not have to be a completely new tenancy and you cannot have the leavers to remain on it as you are no longer keeping your side of the agreement. I doubt they would agree anyway.

David Houghton

10:33 AM, 15th April 2023, About A year ago

Affordability check as start new tenancy for ,6 months
Don't bother with fees,. Goodwill and god tenants pay dividends

David

13:21 PM, 15th April 2023, About A year ago

Reply to the comment left by Crossed_Swords at 15/04/2023 - 10:26
I dont agree with the variation proposal. It isn't the usual procedure and a court would be unlikely to accept it as valid imo.

It is sometimes possible to do a deed of assignment, but this is not straightforward and doesnt get around the deposit issue either.

Randonneur

13:19 PM, 17th April 2023, About A year ago

Unless you want them to leave, just reissue a new contract.
What's the point of re referencing? You've done that before and they are now your tenants. Look after them and just keep it all legal with new contract.
If you check if they can afford it are you going to chuck them out if they can't. Afterall they didn't need to tell you as they are just doing the right thing. The contract is still valid until you are given notice, then everyone has to move out or re negotiate.

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