Tenant moving out before the break clause date

Hi there

Our tenant is moving out before their 6 month break clause. However, they have some friends that are interested in the property. The existing tenants have been excellent and we’ve explained that they are liable for the rent to the end of the break clause notice period. Using Open Rent are we able to create a new tenancy once a tenant has already moved in. We would complete referencing for the new tenants before any handover of the property takes place.

I’m wondering if someone has an experience similar to this they could share.

Many thanks

It would be very inadvisable as the tenants would have no incentive to sign anything. Once they move in and pay you rent, you are deemed to have granted them an undocumented periodic tenancy and you may find it very difficult to impose rules after the event.

Why can’t you do everything wth the change of tenancy on the same day? If they are planning to move in before the break clause notice expires, then just get the existing tenants to sign a surrender on that day and the new tenants to sign the tenancy agreement. Don’t forget all the other paperwork and also don’t forget that as its a new tenancy you will need an EiCR first.

Alternatively if you want to avoid some of that, do a deed of assignment of the tenancy from the existing tenants to the new tenants. You might need some help with that though as it might be a bit tricky.