We found a tenant who paid the deposit and first month’s rent. A10 days before he was due to move in he said he could not. We were going to agree mutual suspension of contract but realised Open Rent would then return the deposit in full when we had no idea how long it would take to find a new tenant.
We now have a new tenant but need to claim legitimate expenses (Open Rent advertising plus minimal £20 utilities and £200 council tax). The deposit is held by Open Rent,
How do we claim expenses back and should we action the mutual suspension of contract before or flyer we get the expenses?
Discuss with the former potential tenant with the evidence of the expenses you have incurred.
Explain that you could have required them to give 2 months notice (ending the day before a rent payment date) and paid two months rent, but are willing to sign the mutual surrender if they pay these costs.
If they refuse, you claim from the deposit scheme (just like damage or rent arrears) based on evidenced costs.
I’m guessing the council.tax and utilities are based on a period before the new tenant moves in. You could wait till that actually happens before signing the mutual surrender, so you know the actual costs and can put those to the deposit scheme when claiming. In addition if new tenant drops out or delays your costs will be higher. Meanwhile your tenant is on the hook for the rent due so if necessary you will be able to claim up to 5wks rent arrears from the deposit scheme. Don’t accept keys back meanwhile or take possession of the property. Wait at least till the rent arrears will cover your additional costs before signing the surrender then you have the choice of claiming from the deposit scheme either as rent arrears ,(which are easy to prove as you have date tenancy ends and tenant cant prove they paid for the extra days) or for the various items you mention- where you’ll ideally get evidence of actual costs incurred estimates.
Good luck
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Payments when you end the tenancy without giving the correct amount of notice
If you give less than the minimum amount of notice to end the tenancy, your landlord can require a payment. This cannot be more than the amount of rent due until the minimum notice period ends (2 months starting on the day rent is due).
Open Rent hold the deposit but are being very difficult to deal with as I have to write messages on their system and get vague replies from many different agents.
1.Do we have to do the mutual suspension of the tenancy, given it never started ( he never moved in)?
He has agreed to pay the mere £400 we are claiming from the rent.
Open rent want us to set a date for ending the tenancy. What date is best, given that it takes a long time for them to sort it out. I believe you have to wait 90 days from the start of the tenancy which was mid August.
I am finding Open Rent very opaque,yet they organised all the tenancies and hold the deposit!? Communication is hard- nobody to talk to- different agent responding- protect themselves from any responsibility. We are very small, amateur landlords who have been badly let down by thus tenant and need help,advice and support.
Hopefully the Forum will be a far better help than Open Rent who pocket the money then leave you to it! Unimpressive.
How do we know. You havn’t provided any dates on your post. Has the ‘start of tenancy date’ passed now or not? If yes, put the date you & the tenant have agreed to end it, or put the tenancy start date. The claim from the deposit etc will then be very straight forward if you have agreed this with the tenant.
You do understand, OR are a portal for ‘self-managing’ landlords / agents. You are not paying them for ongoing management or legal advice. They need not be there to hold you hand. If you desire this service, OR might not be for you.
You dont have to but you have to end the tenancy somehow don’t you. If tenant gave notice it’s a min 2 months from date of notice, to end on a rent payment date, so def easier just to do the mutual surrender of the tenancy from today.
Great, make sure you have that in writing [copy of email or text to upload/send to the deposit scheme when claiming]
It doesnt take 90days, that’s nonsense. The tenancy can be ended by you and tenant agreeing [mutual surrender] at any time. As they have already paid a month’s rent and your £400 can also come from the deposit, just give today’s date. Then when you get to the stage of returning the deposit, you add details of your claim for £400 and the evidence of tenant agreeing to it… details of the process here My tenancy has ended, how do I return the deposit to my tenants? – Help Centre
You get what you pay for - what OR charge is for specific services and is far less than a high street lettings agent who will charge far more every month