I have a couple on a joint tenancy. They are splitting up and one tenant has served notice. I understand that I will need to re do a new contract but on the original affordability check for them on the joint tenancy they were a bit short on the affordability on their own. I know I can do another check for the new contract but what can I do if I decide they can’t afford it. Can I end the tenancy on that basis?
You can ask the remaining tenant to provide a guarantor. If they are unable to you should end the tenancy for both.
Best!
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If one has served notice, the tenancy will end for both. You don’t need to do anything. That’s how joint tenancies work.
If the one who hasn’t served notice wants to stay in residence, you’ll need to start from scratch with them as if they were a new applicant.
You should be prepared for the fact that the one who hasn’t served notice will not want to leave even though they should.
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My best outcome would be for them to stay as they have only been in for a couple of days short of a month! Is it wise to take it on trust that she can afford it. She paid rent on time for her last property for nearly 10 years but it was £400 less than current rent
There have been cases in the past of people taking on a joint tenancy because the other person wouldn’t get a tenancy on their own. They then seek to exit and leave the other person in situ. Ive no idea if this applies here, but if the one who wants to leave hasn’t served notice, I would let him know that this is the only way he can get out of the tenancy and liability for the rent. You can then re-reference the other one before deciding if you wish.
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Check notice was valid and accept it (unless specified in tenancy agreement then by default it’s 2 months to end on the day before a rental period). Tenancy ends for both automatically. Both liable for rent till it ends. Make sure they both understand that
You don’t need to do a new tenancy at all. If the person who wants to remain can’t afford it you could offer at a lower rate, or ask for a guarantor or just find a tenant who can afford it
Why wouldnt you do referencing Inc affordability just like any other potential new tenant? Especially as you know she paid less previously. Cost = £30.
Your best outcome is tenants who want to be there so not both of them staying if they’ve split.
Take on trust = unnecessary risk.
Good luck
this is the case so the following means what exactly David?
@Joanne50 had said
“I understand that I will need to re do a new contract” and I’m making clear this isn’t true at all. She can let existing tenancy end and do nothing at all. There is no ‘need’ to do a new tenancy contract. @Joanne50 could choose to do a new tenancy contract with the remaining tenant or to do a new tenancy contract with someone else or indeed to stop renting it out at all.
Best
Yes I think I’ll go ahead with new affordability check. It did seem a bit odd that one is already leaving, only moved in on 18th May!
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Joanne, you don’t need to pay for this. Just ask for 6 months of bank statements from the individual who wants to remain. The income on these statements will confirm whether they can afford the rent. Monthly income should be 3x the rent (i.e. for a rent of £500, £1500 income is required). You’ll also be able to see whether they are in debt or dip into an overdraft or come close to zero each month. Those are warning signs.
If those statements demonstrate affordability then you can proceed to run a credit check. This will surface any credit issues from the last 6 years. But you need to pay for that whereas you don’t for bank statements so that can save you the bother if the statements reveal a lack of affordability.
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Thank you that’s helpful