This is a question to the blog clinic from Catriona who is a landlord in England.
My tenants have served two months’ notice, as required under our rental agreement, that they will be leaving on 15 March. However, they are buying a flat and as yet there is no agreed completion date.
I plan to start marketing the flat this week, with March 17 as the move-in date. What is my legal position if I sign a contract with some new tenants for them to move in on 17 March but then it turns out that the existing tenants haven’t actually completed by then?
Answer
You need to be REALLY careful about this. Landlords can only get vacant possession of their property in two circumstances:
- The existing tenants moving out, or
- Using a court bailiff or High Court Enforcement Officer acting under the authority of a court order for possession
So if tenants fail to vacate, in this case because they have not completed on their house purchase, you will not be in a position to let new tenants in.
If you have signed a tenancy agreement with them, you will be in breach of contract. They may be able to claim compensation through the courts.
You can guard against this by making the new tenancy conditional upon the existing occupiers moving out, but for this to be enforceable, you would need to be able to prove that this was clearly drawn to their attention, and the clause would have to be ‘given prominence’ in the tenancy agreement document.
However, my advice to landlords is that you should not sign up new tenants until you have vacant possession and have been able to enter and view the property first.
Why landlords need to leave time between tenants
For example, the property may need serious repair works or there may be other things that will need to be done. For example, energy efficiency upgrade works. Most works are best done while the property is empty. The property may also be refurbishment or decorating works before it can be marketed.
You really need at least a couple of weeks between tenancies.
Bear in mind that if the previous tenants have left the property in a dangerous condition (for example, if they have removed unauthorised additional wall lighting, leaving live wires in the wall, or if there are bed bugs) you will be liable to the new tenants for this.
Even though the actual problem may be the fault of the outgoing tenants.
It is unwise to move new tenants in just two days after the previous tenants have vacated, as you will not have enough time to deal with things. You may be laying yourself open to complaints and compensation claims.
Particularly as the new Renters Rights Bill will be increasing the standards for rented homes and penalties for non compliance. And setting up a new Redress Scheme which will make it easier for tenants to complain.
There is a shortage of decent rented accommodation at the moment, so it should not take too long, assuming your property is in good condition and in a decent location, to find new tenants, after they have vacated and you have carried out full checks on the property.