Existing tenant wishes to add new partner

Hi, looking for a little advice on the options available:
My tenant previously set up their original TA with his previous wife (and guarantor). After she moved out, a new TA was raised via OR) and completed (with existing guarantor).

His new partner is now moving in. What are the options; IE live in a ‘guest’ without the full rights, or reference for the new partner (and additional guarantor), if so, whom is responsible for reference costs. If the LL has to stand these additional reference costs, what happens if he decides to change partners say every 6 month!.

Thank you for any advise, warmly received

@Peter56

You aren’t obliged to allow new partner to move in and might want to find out a little bit about them first, whether or not they are added as a joint tenant responsible for paying the rent or as a permitted extra person living there. What are their circumstances (employment etc), where were they living before and how were they paying etc, do they smoke etc. Can they provide refs. Do they have their own (kids etc). All the same questions you’d ask a new tenant.

If it changes circumstances of current tenant if new partner is dependent on them could affect their own ability to pay. Equally could be a positive if new person wants to be a joint tenant if their combined income means better affordability

2 people = more wear n tear as well, something to consider for future rent levels.

If tenant asks for changes to TA they can be charged for that capped at 50 quid per change generally. Guidance says

Q. If a tenant has found a suitable replacement tenant, can I still charge more than £50 for a change of sharer fee?

It is unlikely that you could justify charging a fee above £50 in this circumstance. The costs involved in referencing the replacement tenant, re-issuing the tenancy agreement and protecting the tenancy deposit should be small. You could also ask
the tenant to obtain such a reference voluntarily (although you cannot require a tenant to do this as a condition of granting them a tenancy) to further reduce the costs incurred. There are several third-party organisations which will carry out professional referencing checks at a small cost – for example, a full tenant reference check can cost up to £30.

You should be able to demonstrate to a tenant that any fee charged above £50 is reasonable and provide evidence of your costs. Any costs that are not reasonable are a prohibited payment.”

Tenant Fees Act 2019: Guidance for landlords
and agents

Think You can’t generally charge for referencing (pretty sure not allowed for new tenancies) but like any other costs can allow for these when setting future rent. But small compared with peace of mind about whom you are entrusting to take care of your property and not trash the place

New person likely to need own set of keys you can perhaps charge for (unless you have ones from ex wife)

If part of a block/flats with shared entrance you need to tell other flat owners and freeholder/mgt Co that deals with communal areas if there is one, and /or building insurance.

Good idea to go through any house rules or requirements of the tenants (eg on cleaning or on ventilation/steps to avoid damp/mould, or not behaving anti socially to neighbours) with new occupant as well because in practice they need to follow same rules while living there.

Sorry if all v obvious

Good luck

don’t add them as a tenant and don’t take any rent directly from them, only the original tenant. Inform the tenant in writing that you admit this partner (name them in the communication) as a permitted occupier and inform your insurance/mortgage companies of the change of circumstance.

Thankyou for the advice :+1:

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Thank you for the advice :+1:

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Hi - 2 points here

  1. Having someone as a permitted occupier can lead to complications later on and you could even have cases where the tenant leaves but the occupier remains which is very unfortunate so definitely worth exploring. Also - if there are issues with that person causing damages, etc - there may be complications where original tenant and guarantor try to avoid responsibility so worth exploring. In all cases you must do right to rent checks on anyone over 18
  2. I had the exact same situation and did checks on the new guy and there was some adverse credit history but reluctantly accepted him on the condition that the guarantor remains on the new tenancy agreement as they were really strong. I debated serving section 21 at the time as I knew the new guy was gonna end up living there regardless. I really regret not doing it at the time because even though the previous tenant was great for over 2 years, as soon as the new guy came in, they have been nothing but trouble. They left the property a week ago after I got a court order and they have left me with c. £4k in damages and £3k of arrears

If I get the same situation again I will definitely do full reference checks and if there is even a spot of bad credit or any red flags - it’s going straight for S21.

Hope this helps

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A permitted occupier has no tenancy rights, so if the tenant leaves and they remain, you can remove them without a court order once the tenancy ends.

If the permitted occupier causes damage, the tenant is responsible and you can claim any costs from them.

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