Hi, Im new to Openrent and in the process of finalising a deal with a new tenant. I was aware from the beginning of the discussion that they were three professional friends…. all familiar with each other and currently living together. Now that we are at the point of handing over money no one person want the responsibility of the contract being in their name! So they want all three names on the contract. Is this normal, and does the Openrent process facilitate this?
whether you have one or all three doesn’t make any difference legally. You’re all joint and severally liable. If you don’t know what that means, look it up because you need to. The fact that you’re thinking that the responsibility of the contract being in your name is onerous makes me think you’re not aware that in effect you’re all on the contract in this scenario.
Typically, there’s what’s called a ‘lead tenant’ but this is more administrative than anything else. It’s the tenant who the LL or agency is in touch with and typically this is who the deposit is registered in the name of. But as I say, this is an administrative not a legal differentiation. In law, you are all equally responsible for the entire tenancy.
Edited to add that I thought you were posting as T, not LL!
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Hi @Alan6
Anyone over the age of 18 who will be living in the property should be named on and sign the tenancy agreement.
One of the tenants will have to place a holding deposit (or application, if the tenancy is in Scotland) and will become the lead tenant. They can then enter the details of the other tenants, all of whom will be invited to sign the tenancy agreement.
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Yes
Just to add that if all 3 are going to be responsible for the rent and taking care of the place you probably want to get all 3 referenced
You also need all 3 to understand that because they are severally/jointly responsible then the tenancy ends if any of the 3 serve the correct notice but that if 1 simply moves out all three remain responsible for the rent (Worth thinking /considering if you would accept an alternate person in that circumstance if they find someone suitable who passes referencing
Worth understanding if each has contributed to the deposit
Good luck
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Beware @Alan6, that 3 unrelated tenants will be a HMO (House of Multiple Occupancy). This might complicate your obligations. Worth googling HMO obligations for Landlord, and also checking your local council website for their requirements.
This appears incorrect to me. Either joint tenant can end the tenancy agreement, and this ends the tenancy for all.
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@Karl11 sorry yes I have corrected to say what I meant ie that it’s complicated if one decides to move out; and good point re HMO too
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Actually, you were right during that during the initial term, all three must agree to end the tenancy, but once it becomes rolling periodic, any one tenant can end it for everyone.
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@David122 thanks - I knew it was complicated!