Change of tenants in a rolling contract

Hi

I had a couple move into my property in 2023 whose relationship ended during the first year of their tenancy. The girl moved out at the end of the year to be replaced by a couple who were friends of her ex. The ex stayed as lead tenant. The deposit was sorted out between the departing tenant and the new tenants and the DPS document adjusted to reflect this.

The tenancy rolled over and the tenants stayed until the end of the lease. They left significant damage to the house and did not look after the house or gardens resulting in my having to engage a cleaner, gardener and rubbish clearance.

The lead tenant has been in the property since 2023 but the other two tenants are claiming that they are not bound by the initial terms of the lease and have no obligation to pay for any repairs etc.

I was seriously ill when the tenants changed and did not do a check in and they did not request an inventory as stated they should request if required in the OR tenancy agreement re change of tenants.

Am I correct in thinking that they are wrong about the tenancy commencing when the new tenants moved in in 2024 and that the rolling lease they signed expects them to adhere to terms regarding responsibility for the property’s condition throughout their term?

There’s not really enough information to respond precisely. Did former tenants give notice to quit, did you accept this, do check out, return to deposit to everyone and then issue a new tenancy with new tenants, new check in, new deposit and issuing all paperwork?

If not, then the original tenancy is still in place and the lead tenant is still liable. You have been accepting rent from the couple and they’ve been living there so that complicates things. Others will no doubt clarify what their liabilities are based on that.

In the meantime, it would be helpful to know precisely what you did or didn’t do at the time the ex left and the couple arrived.

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It sounds like you’ve created a mess. If you didnt end the original tenancy and create a new one for the 3 people, then the original tenancy is still in force. Furthermore if youve accepted rent from the new couple, you will have created a new tenancy for them concurrent with the original, both tenancies for the whole space, which should be impossible. On top of that, you have created an HMO, which if your Council requires a licence, you will be in breach and the tenants could claim a rent repayment order against you with up to 12 months rent refunded. If I were you, I would let it go and keep your fingers crossed.

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Hi David

Thanks for replying.

I have not created an HMO as there are no more than two ā€˜households’ sharing a three bedroom property.

One half of the couple left..the one who stayed became lead tenant and the lease rolled over. The couple were added in a change of tenant and the deposit was changed to the names of all three tenants with the new couple ā€˜buying out’ the departing tenants share.

Thanks for your reply.

The departing tenant gave notice and was replaced by the couple who were added to the lease agreement and deposit as I said previously.I don’t believe the lease was terminated as the partner from the couple stayed as lead tenant..it rolled over.

They all signed the new agreement but there was no check out or termination of the old lease.

The deposit is in all three departing tenants names.

One of the newer tenants is now disputing the condition of the property, stating that the lease started when he moved in. However, I believe the original lease has never been terminated.

The rent has always been paid by the lead (original) tenant who received payment of the other two tenants share directly from them.

If the departing tenant gave notice and you accepted it, the tenancy cannot ā€œroll over.ā€ The agreement was ā€œjoint and severalā€ which means if one tenant gave notice, all tenants give notice and the tenancy thus ended if you accepted notice and keys from the tenant who left. At that point, you should have done as I described in my first paragraph.

That you didn’t release and retake deposit is probably biggest issue as it means you won’t have reissued the right paperwork and can be sued for that.

If you did not carry out an inventory when the new tenants moved in then you have no way of proving any damage is their responsibility at all. So, no, you are not correct either on grounds that they ever had a written tenancy agreement nor on grounds that you have proof damage is a result of their occupancy.

If everyone walks away from this, I’d be grateful… and then learn how to properly handle joint tenancies.

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Two households with 3 or more people is the definition of an HMO. Whether its licensable depends on your Council’s policy.

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..the one who stayed became lead tenant and the lease rolled over. The couple were added in a change of tenant and the deposit was changed to the names of all three tenants with the new couple ā€˜buying out’ the departing tenants share.

Im not really clear what you mean by this. Could you explain the actual process.

Thank you.

Yes I have done some reading and have a little more clarity now.

The deposit is dated as being from 2023 as only the two tenant names were changed after it was lodged initially.

That caused me to be confused in the first instance.

Obviously the deposit has been protected throughout.

The tenant I am communicating with is keen to settle payment for some of the repairs and not involve the DPS since they really did not meet the requirements stated on the lease in terms of the condition of the property when they left and I do have a considerable amount of photos taken at the start.

I am just going to have to take the hit and put it down to experience and as stated in the earlier chat, fingers crossed.

I’m not planning on continuing to rent the property with all the changes incoming for landlords…it seems we have less protection than ever! :smirking_face:

Thank you guys for your input..much appreciated.

The deposit is in the names of all of the three tenants. The departing tenant was removed from the deposit paperwork and her partner paid back her share of the deposit.

The incoming tenants paid their share and deposit was amended accordingly. The date on the deposit is still the same as when it was first issued in 2023…hence some confusion over the lease start date.

In addition, OpenRent did not charge me for a new lease…I only paid for referencing in the case of the incoming two tenants.

I did not apply for a new lease..just a change of tenants. This has led to further confusion and there was no clarity when I contacted OR.

You have been most helpful…thank goodness for this chat room!

If two of the tenants are from the same household and rent with one other person…there are no requirements for an HMO.

I think you may be confused on this HMO point Rachel. Do a google search on definition of an HMO. Licensing is a different issue. Not all HMOs require a licence, but Councils have the option to license smaller HMOs and many do. You can check on your Councils website whether yours does. Even if it doesn’t, you are still obliged to comply with the HMO Management Regulations 2006, which are not vastly different from licensing t&c’s.