My tenants are terminating their 12 month fixed term contract early (due to their work relocation) by using the break clause at month 6 and giving 2 months’ notice as per AST wording, i.e. they are leaving 8 months into their 12 month fixed term. While not ideal, it is what it is and I have fortunately found new tenants. Am I correct in thinking that since the current tenants used the break clause to terminate early, I will NOT be able to claim from their deposit any costs associated with the early termination e.g. £69 Openrent advertising fee? I don’t think I can claim but wanted to check this with others.
From 1 June 2019, the only payments that landlords or letting agents can charge to tenants in relation to new contracts are:
rent
a refundable tenancy deposit capped at no more than 5 weeks’ rent where the total annual rent is less than £50,000, or 6 weeks’ rent where the total annual rent is £50,000 or above
a refundable holding deposit (to reserve a property) capped at no more than 1 week’s rent
payments associated with early termination of the tenancy, when requested by the tenant
payments capped at £50 (or reasonably incurred costs, if higher) for the variation, assignment or novation of a tenancy
payments in respect of utilities, communication services, TV licence and Council Tax
a default fee for late payment of rent and replacement of a lost key/security device giving access to the housing, where required under a tenancy agreement
Going by that, you are right. You will not be able to deduct this. They have the right to leave the property at that time because there is a break clause specifically to allow them to do this.