My flat is let under an AST with only the husband named on the agreement. He and his wife have since separated—he moved out months ago but has continued paying the rent until the end of this month, when the tenancy ends.
From 1st July, the wife wants to stay on and is happy to pay a slightly higher amount per month.
If I just replace her name on the existing contract, it would still show the old rent. I’d prefer the new rent to be clearly stated, but setting up a brand new agreement might involve extra fees and referencing.
Has anyone dealt with something similar via OpenRent? Would it be better to amend the current contract or start fresh, considering legal clarity and costs?
What do you mean by “the tenancy ends”? He needs to give notice formally and you need to accept it. Nothing happens automatically.
Once his notice period runs out (and he needs to pay until it does), then you need to do a check out for him and release his deposit to him and start again with the wife if you are sure that you want to do that (i.e. all referencing and affordability checks have been done on her).
There’s no way to fudge this to save yourself a few quid. It could end up costing you a great deal more.
Thank you so much for your thoughtful and generous advice.
The tenant (the husband) gave formal written notice, in line with the tenancy agreement, although he had informed me months ago of his intention to end the tenancy due to the separation. I accepted his notice in writing, and he has paid rent in advance for this final month.
I hold his deposit. Would you recommend returning it immediately or waiting until the tenancy officially ends?
What exactly is involved in a “check-out”? He has been living abroad for several months and won’t be present.
His ex-wife has suggested I organise a brief inspection of the flat to note any potential damage for which he may be responsible. I think Open Rent can do this for me for a fee and base it on their initial inventory, which I had done at the start of the tenancy.
The ex-wife was originally referenced when they first took the flat, even though the tenancy agreement was in his name. However, if I want to apply for Rent Guarantee Insurance (RGI) in her name, I’ll need to run fresh referencing and affordability checks.
I completely agree with your point about false economies. 100%
great that you’ve got everything sorted to officially end the tenancy. Wait until it officially ends. On the day it ends, take meter readings and do an inventory and return his deposit minus any deductions that are reasonable.
You should start referencing her and doing affordability checks now. If she passes and you’re happy, you could be in a position to start her tenancy the day after his ends by using the inventory and meter readings as your basis for the new agreement. That’ll depend on how much time you’ve got left though as to whether you can get that done by the time his runs out. Don’t forget to take a deposit for her on that day too and do the necessary paperwork to protect that.
Inform your insurance and utilities/council of change of tenant.
Actually, if its a fixed term tenancy, (ie not continuing contractually), then the tenancy will end at the end of the term and if the tenant is not in residence, a statutory prriodic tenancy will not arise. This would make the wife a tresspasser, but she would likely have some rights under family law.
If this is not a contractual periodic tensncy and you have referenced the wife and are happy that she can afford it, I think you would be ok to go ahead and sign a new tenancy agreement with her.
It definitely needs to be a clear break of tenancy-No way to fudge here. In relationship breakdowns, there’s always He said/ she said. You don’t want to get caught up with all that.
Treat it as if the two people do not know each other. Let the tenancy come to an end, do a end of tenancy checkout (you can order that from OpenRent) they will take the meter reading and record any damage etc. then if there is any work required, review that estimate with the tenant and give him the option to make good, or take it from his deposit.
Then make a entirely new agreement with the ex-wife (also why is her rent higher?)
This way everyone is clear on their responsibilities. it may cost you a few quid with extra checking out/ in but you’ll be thankful in a few years.