My tenants wish to serve me notice on a tenancy that still has 6 months left to run because they are having arguements and have received threats from drug users that are coming into the communal area of the building since the entry door security has been broken. I am the leaseholder but the building is hackney council, and it has been about 3 months since the door has been broken. The police and the local ASBO team are aware of the issue and the door should be fixed this week.
The property was burgled while the tenants were on holiday which is added reason for them wanting to leave, but they left the door only locked on the chub lock, the yale lock was unlocked and they did not shut or lock the security gate. This is all in the knowledge that the stairwell was not secure. To my understanding, my tenants are quite confrontational with the users, and other tenants in the building don’t have the same problems.
I would like to know what my recourse is here, do they have the right to leave the premises due to it being, in their opinion, uninhabitable?
Should I let them leave the tenancy early but with some kind of financial settlement? I live abroad and would have to return to the UK unplanned in order to re-let the flat? Should I ask them to cover my expenses and lack of rent until the property is re-let or should they just be expected to leave and waive their deposit. Any help or advice is really appreciated.
I have also contacted open rent legal advice section.
As a LL who let property while I was overseas for over 20 years, I don’t see how it is their fault that you are overseas. Therefore, I feel it would be unfair on them for you to attempt to factor in any compensation for you returning to the UK.
I used agents while I was overseas for exactly this reason: they are on the ground and can deal with any unforseen circumstances on my behalf. If you are managing the let yourself, you need to be able to deal with such circumstances yourself and that inconvenience is not something the tenants should have to compensate you for even if they bear some or all responsibility for the issue.
tatemono - Why do you think a deposit cannot be used towards unpaid rent? As long as you have such a clause in your tenancy agreement, I’m re-assured that this would be ok, although I’ve never had to test the theory.
Nic19740 - If they are serving notice in accordance with the terms of their tenancy agreement, then you should accept & move-on. If they are trying to end a tenancy early without any eligible termination clause in the agreemnt, then you could negotiate a settlement with them, or tie them in for the full term if you wished.
No, they dont have a right to break the contract, but trying to make them stay is probably more trouble than its worth. I would suggest you agree that the cover the rent until you have a new tenant in place.
Thank you all for the input and guidance, much appreciated from all.
Thanks David79, the AST is for 12 months. A standard open rent agreement with no break clause, we are 6 months in.
Thanks Tatemono, I think I should clarify that the fact I am overseas is not the issue. The fact is that there are costs associated with re advertising/showing/referencing/ etc etc that need to be covered regardless of whether I do it or an agency does it.
The matter in question concerns whether they should be able to leave the AST early because they have suffered Anti Social abuse (regardless of whether they have brought it on themselves or not). I feel I shouldnt be punished as a landlord because my tenants cannot get on with people in their neighbourhood and want to leave early. Does that clarify the issue?
Hi Karl, no they are not serving notice in accordance with the terms in the AST, as far as I understand it. I feel that your suggestion of a settlement, in order to cover the costs of getting the flat re-let is a justifiable option. I will add the relevant page of the AST at the end.
Thanks David122, this seems like the most reasonable course of action, but I will also see what Legal Action says.
Interrupting or Ending this Agreement
The following clauses set out the ways in which this agreement may be brought to an end by either party. In
addition, these clauses set out the procedures which the Tenant or Landlord shall use when the tenancy is
brought to an end.
Early termination by the Landlord
12.1. If and whenever during the Term:
the Rent or any part of it is in arrears for 14 days after it has become due (whether legally demanded or
not), or
there is a breach of any of the obligations or agreements on the part of the Tenant, or
the Tenant becomes bankrupt or insolvent or enters into a voluntary arrangement with its creditors; or
any of the Grounds 2, 7 (in England only), 7A, 7B (in England only), 8, 10-15 and 17 set out in Schedule
2 of the Housing Act 1988 apply
the Landlord may re-enter upon the Premises or any part in the name of the whole resuming possession on the
furniture and effects and immediately thereon the tenancy shall terminate, but without prejudice to the other
rights and remedies of the Landlord. The Landlord’s rights under this clause are subject to the restrictions of the
Protection From Eviction Act 1977 and the Housing Act 1988 and the Landlord will not whilst the Tenant is
residing in the Premises physically retake possession without first obtaining a Court Order.
Notice to end the tenancy at or after the end of the Initial Term
12.2. If either party wishes to end the tenancy on or after the final day of the Initial Term, they may give notice
in writing to the other as follows:
The Landlord must give notice of no less than two months, such notice to expire any time on or after the
final day of the Initial Term. A notice served by the Landlord under section 21 of the Housing Act 1988
shall be sufficient notice under this clause.
The Tenant must give notice of no less than one month, such notice to expire the day before a Rent
Payment Day or on the final day of the Initial Term.
12.3. If neither party serves a valid notice to terminate the tenancy at the end of the Initial Term, the parties
agree that at the end of the Initial Term the tenancy will continue as a contractual periodic tenancy on a monthly
basis. The parties agree that clause 12.3 acts irregardless of whether multiple months rent was paid in advance
or not.
Uninhabitability
12.4. If at any time the Premises are rendered uninhabitable by an event or events which are not the result of
negligence or breach of contract by either party then, the choice being at the Landlord’s sole discretion, either:
the Rent will cease to be payable by the Tenant until the Premises are made habitable and the Landlord will
be under no obligation to provide alternative accommodation; or
the Rent will continue to be payable and the Landlord will be obligated to provide suitable alternative
accommodation to the Tenant.
12.5. If following an event described above, in the reasonable opinion of an appropriate expert the Premises
cannot be made habitable within one month then either party may give one month’s notice to terminate this
agreement following which it will end and no further obligations under it will be performable by either party save
that either party may pursue the other for breaches of this agreement which pre-date said termination.
This is an interesting question. I can’t see how you would be responsible for the issues in the communal areas… it would be rather unreasonable of your tenant to terminate early using the uninhabitable clause in this circumstance as it isn’t within your control. I agree with David’s suggestion, that the T pays rent until you have a new tenancy in place. I think that you could still charge them the costs associated with terminating the tenancy early, such as re-marketing etc. I doubt you would be able to get them to cover your travel expenses, I suppose you could let the deposit adjudicator decide. Might be worth looking into paying someone locally to conduct viewings if it’s less than your travel costs.
Thanks for the reply Mita, much appreciated. I am having ongoing conversation with Landlord Action and will update the thread with their final recommendations, in case it is useful to anyone else
Asking for additional payments must comply with the rules around permitted fees. Void and letting fees are legitimate and allowed. Not sure about travel though.
payments associated with early termination of the tenancy, when requested by the tenant
The fees have to relate to having to arrange a new tenancy (e.g. letting fees, covering rent loss in a void period, referencing new applicants, etc). Travel from overseas would not be covered, but travel from your usual place of residence in the UK to the rental property for the purpose of viewings and check in of new tenants is quite likely to be an allowable fee under this. Your accountant can tell you more.