After one of my three tenants left in October I verbally agreed to a temporary rent reduction over three months of winter for the remaining tenants on the basis of 1. tenants wanting extra space to work from home through winter and not wanting to find a new housemate with covid situation (particularly during November lockdown) and 2. the tenants planning to stay on indefinitely next year (the implication being 6 months+). This was all arranged over the phone apart from an email with the particular dates and agreed adjusted payments.
However they have now verbally given notice that they’ll leave in January, and it has also come to light that they are currently subletting the spare room (I found this out when I arranged to do a virtual viewing for some new tenants).
Until now we’ve had a good relationship over the last four years, but I feel like I’ve been taken for a big ol’ ride with covid being used/abused as the reason for it. I’d like to rescind the deal we made and demand they pay back the previously discounted rent as they’ve not upheld their part of our arrangement. They’ve also given notice right before Christmas which makes things extra difficult with viewings etc.
Can anyone advise what to do here? Are there grounds to take money from the deposit if they won’t pay?
There is what you are legally entitled to. Then there is what will make your life easier and save you grief.
Your tenant pulled a major dick move. While verbal agreements are a bit tricky it does sound like you have a sound case for keeping the lost rent. Provided you made it clear your agreement was based on those terms. (This is where verbal agreements can be sticky- no written record to confirm!)
Right now it’s in your best interests to get the tenant out and new tenants in with minimal hassle. Your tenant being agreeable to viewings will make it easier to fill and mean less lost rent.
I wouldn’t suggest bringing this up to the tenant until after they’ve vacated the property.
Then, yes, it does sound like you’ve got a solid case to take this from the deposit. Make sure you have evidence that they’ve been subletting just to be safe.
If the tenant tries to fight, though, it’s not always just who is legally right. It’s worth considering how much rent you’ve lost and what the headache will be if your tenant tries to fight you and say you’ve withheld too much. What will that process look like? How do the courts usually handle verbal agreements?
There are some cases where it’s worth taking the financial loss to be rid of someone like this.
As above, I think under the circumstances I would just let them go. Not tenants I would want in my property. The sublet tenant will be their lodger (licensee) with few rights so its important that they evict him/her before they leave. If they don’t then s/he will become your tenant on an undocumented AST. This will make it difficult for you to remove them. If the tenant refuses to remove them then I would remind them that the income they received has to be declared to HMRC and that as a concerned tax payer you would feel obliged to inform them.
If the original 3 tenants weren’t related then the property will be an HMO. Its not mandatory licensable, but if you haven’t already, it would be wise to check whether your local authority has introduced an Additional Licensing scheme in your area covering 3 bed HMOs. If so then tread more carefully as the tenants could initiate a Rent Repayment Order to claim up to 12 months rent back. They could also land you with a large local authority fine.