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Tenants who have paid rent in advance splitting up

This post is more than 9 years old

May 17, 2016 by Tessa Shepperson

housesHere is a question to the blog clinic from Ella (not her real name) who is a landlord

My tenants are an unmarried couple who are splitting up. She paid one year’s rent in advance and now because she can’t live with him anymore and he refuses to move out she wants to end the tenancy agreement.

What is the best way to deal with this?

Answer

I am assuming that the fixed term of their tenancy has not yet ended.

The answer is, you don’t have to do anything. It is up to them to sort it out.

They have signed a binding legal contract to pay your rent for a year and have paid it. If they now decide that they can’t live together – it’s not your fault.

If they are able to find someone else to take over the tenancy then, provided they pass referencing, you could agree to re-let to them so long as your expenses are covered.

However what you don’t want is to refund the advance rent paid by your current tenants only to find that the new tenants don’t pay and you are then out of pocket.

For your point of view the best thing to do is just refuse to allow the current tenants to end the tenancy early or to refund any money.

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Filed Under: Clinic

Notes:

Please check the date of the post - remember, if it is an old post, the law may have changed since it was written.

You should always get independent legal advice before taking any action.

Reader Interactions

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Comments

  1. Ian says

    May 17, 2016 at 4:09 pm

    Also remind her, that she is responsible to pay for any damage he does along with all the rent until such time as he leaves, if he remains after the fixed term…..

    • Steve says

      May 17, 2016 at 8:07 pm

      I think we need to know if ‘the tenant’ is one or both of them and also the status of him if he’s not named in the agreement. If just her then she potentially has a route to remove him within her own fixed term and move back in alone.

      And we need to beware that ‘trash it and abscond’ could be the result of playing hardball rather than trying to find a win win solution

  2. Industry Observer says

    May 18, 2016 at 10:23 am

    Bit that baffles me is the end part where you seem to be implying that even if new tenants take over no refund should be made until they have paid whatever the outstanding months rent is and that otherwise could have been refunded when the new tenancy (and obligations) start.

    That is not what you mean is it Tessa?

    • Tessa Shepperson says

      May 18, 2016 at 11:28 am

      It probably was not well phrased. If a new tenancy is created then the landlord will have to refund the advance rent paid for the remainder of the tenancy, less any expenses incurred.

      I don’t really think its in the landlord’s interest to do this bearing in mind the risk that the new tenants may default. (Unless I suppose they too pay in advance).

      • Ian says

        May 18, 2016 at 11:46 am

        If the new tenant is covered by RGI taking a new tenant will ALL the costs covered by the current tenant may be in the landlords best interest. Getting a new tenant that may remain long term, with no cost of voids etc now, rather then waiting until the end of the AST and then having a void could be good option.

        But it wall depends on the boyfriend fully cooperating with the process.

  3. Romain says

    May 18, 2016 at 3:18 pm

    I suppose that the issue of any refund of rent in case the tenancy is surrendered depends on how the rent is payable in the tenancy.

    If she paid one year’s rent in advance because that how the rent is payable then there is no entitlement to any refund. Any refund will be up to the landlord.

    Whether the new tenants default is not relevant unless perhaps there are specific terms agreed as part as a surrender agreement.

    If the rent isn’t payable one year in advance then the sum that hasn’t become ‘rent’ yet is refundable unless an agreement to surrender specifies otherwise.

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Please, when reading, always check the date of the post. Be careful about reading older posts as the law may have changed since they were written.

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