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Tenant Giving Notice To Quit during the Initial fixed Term...

Last post 15 Jul 2008, 5:04 PM by Aldric Alphonse. 14 replies.
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  •  04 Jul 2008, 5:08 PM 528824

    Tenant Giving Notice To Quit during the Initial fixed Term...

    Short of reminding tenants of their legal obligations, what are some of the best ways to deal with a tenant who gives notice within the initial fixed term, especially when their last month rent remains unpaid?
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  •  07 Jul 2008, 7:11 PM 530253 in reply to 528824

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    In some ways, why would you want to keep a tenant who has already decided in a few months that he doesnt like the property, cant/wont pay for it.

    I'd say that although he legally has to pay for 6 months, if you can find another tenant to move in before the  6 months is up, then he can go - then I'd deduct advertising costs etc from any remaining deposit. Also, keep it friendly and polite, he is stilliving in your house for the forseebale future!

  •  14 Jul 2008, 10:27 AM 535043 in reply to 530253

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    Can I ask a slightly different question?

    Scenario:  A tenant provides notice (correctly) & pays up to the end of the tenancy, but then leaves the property before the date he's paid up to (& informs me in writing).  I then advertise the prop & the next tenant moves in to the prop BEFORE the date that the previous tenant has paid up to.  The previous tenant is therefore entitled to a refund of the number of days rent that is overlapped with the new tenant.

    Question:  Is the landlord allowed to deduct advertising costs from the rent refund?  Effectively, the tenant has moved out of the prop before the end of the tenancy, but the landlord has mitigated any losses by re-tenanting the prop ASAP ... which has resulted in a REFUND to the tenant.  Therefore I would expect that reasonable advertising costs can be charged to the tenant as he has ultimately benefited (in this case, he received 2 weeks rent refund).  If not, there is no incentive for a landlord to get a tenant into the prop any faster than within a "reasonable" timescale. 


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  •  14 Jul 2008, 2:35 PM 535285 in reply to 535043

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    how much money are we talking about here ?

    Clottie The Positive
    “Windswept and interesting”

    The Somerset-Lancashire lady

    Aviatrix extraordinaire !


  •  14 Jul 2008, 5:23 PM 535438 in reply to 535285

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    "how much money are we talking about here ?"
    but is that the point? (Big Smile)  i'm trying to determine the principle to begin with. 
    average advert bill is £40. 
    a recent example for me was a guy giving notice to quit & paying up his contract to the end of the month (1st to 31st March).  then, he leaves the prop on 14th March, and informs me in writing.  no problem at all.  i  have agreed with him that i can conduct viewings during March, and i do.  ordinarily, a new tenant might move into the prop in the first or second week of the April.  fine, i'm paid up to the end of March, i can happily live with a week or two of void (i hardly ever go over that).
    but, i have 2 tenants this time .... one to move in on say March 17th, and one on 1st April.  both applicants pass the application & i'm personally indifferent between them.  if i go with the 2nd, guy, i suffer no void at all, and pay the £40 advert.  but, if i go with the 1st guy, i again suffer no void at all but i have to repay him the overlapped rent.  can i deduct my £40 advert costs?  ex-tenant is gaining because he gets a rent refund, and i get my advert paid for. 
    let's be honest here, there is no way in the world that the ex-tenant will be any the wiser if i decide to go with the tenant who can move in on 1st April, or the earlier one.  the £40 is neither here nor there really, but a (small) incentive to go with the tenant who can move in first.
    the other reason i ask is that i received a load of abuse from teh guy because i deducted the £40 fee from his rent refund ....... afterwards i thought "balls to this, next time i'll pick the other guy" and the ex-tenant won;t receive any rent rebate at all ........
    any thoughts?!

     

    Houses bought FAST ... Blackpool ONLY
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  •  14 Jul 2008, 7:48 PM 535531 in reply to 535043

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    Pod:
    Question:  Is the landlord allowed to deduct advertising costs from the rent refund?  Effectively, the tenant has moved out of the prop before the end of the tenancy, but the landlord has mitigated any losses by re-tenanting the prop ASAP ... which has resulted in a REFUND to the tenant.  Therefore I would expect that reasonable advertising costs can be charged to the tenant as he has ultimately benefited (in this case, he received 2 weeks rent refund).  If not, there is no incentive for a landlord to get a tenant into the prop any faster than within a "reasonable" timescale. 

    Although a commercial tenancy, the principle stands for all tenancies: the Court of Appeal has ruled that a landlord is under no obligation to mitigate his losses.Reichman and Dunn -v- Beveridge and Gauntlett [2006] EWCA 1659

    The tenant wished to end the contract early, thus it is up to them (not the landlord) to pay all the costs of finding a new tenant. Until such time as this is done, full rent is due and payable.

    Thus you can charge all your costs (advertising, agents fees, utilities while vacant - inc business rates if levied by the council etc).

    The tenant might moan, and they are free to take legal action if they wish. Charge the lot, then if they sue just quote the case above and what the full rent liability would have been if you hadn't been bothered to help the tenant.


    David

    Long ago, below an picture of a 4-masted sailing ship in a heavy storm was added: "A ship in a harbour is safe, but that's not what a ship is designed for"

  •  14 Jul 2008, 11:15 PM 535665 in reply to 535531

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    We charge the rent till its re-let and re-letting fees - usually around £70-200 (depending upon agent).

    However, we have had several who have surrendered the tenancy and gone awol so we are now insisting that they a) stay until its re-let - its easier to get rent when you know where they are! or b) they can leave but have to pay everything up front and we will then reimburse the unused portion when its re-let.

    Lisa

     

     

     


    Life is not measured by the number of breaths we take, but by the moments that take our breath away.
  •  15 Jul 2008, 9:00 AM 535895 in reply to 535665

    Re: Tenant Giving Notice To Quit during the Initial fixed Term...

    Lisa, / David A .... thanks .

    in most cases I ask tenants to pay up their contract in advance ... only had a couple of instances where this was refused. the vast majority have guarantors & i also write to the guarantor to explain the situation & put them on notice that they may be required to fulfil their guarantee. 

    the last guy was not happy that we had deducted 2 weeks of adverts (£75) from his £300 rent rebate.  to be honest, i was staggered at his attitude .... since we had re-tenanted the prop 3 days after the moved out, thereby saving him £300, less fees ... net £225 refund.  i did ask him over the phone if he would have preferred me to have selected the other tenant & not charged him any advert costs .... but then, he would have received zilch as the other potential tenant would have moved in AFTER his tenancy expired .... and, incredibly, he said he "wasn't bothered"!  the whole thing just made me think "why do i bother?" .... far easier to let his paid-up tenany run to the end & THEN move next tenant in. 

    but, glad to confirm the position.  i think from now on i won;t bother moving a tenant in if the existing tenant has paid up his contract ... it's not appreciated by ex-tenants & i can't be bothered with the hassle.  the guy in question above should be buying me a pint for saving him £225, but all i get is abuse! 

    tch ... it's a funny old world.


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