I rent a house to two students on a joint tenancy. They were planning to leave at the end of July. One has just asked me if she could stay until the end of November, but she can’t afford to pay over the summer, when they’re mainly away. I’m fine with that, as they have been good tenants, and I’m planning to rent to a family in the future, so I don’t need them out by September.
If they both stay, and I don’t charge rent in August and September, I’ll fall foul of the Tenant Fees Act, as amended by the Renters’ Rights Act. This says a landlord cannot charge higher rent at the beginning or during a tenancy (front loading). Any additional amount would be a prohibited payment, and I might therefore have to repay them back all the rent they’ve paid so far, if I understand it correctly.
However, I think perhaps only one would stay, and another student friend would move in (it’s all hypothetical at the moment – I’m just getting my head round it before discussing it with the tenants in more detail).
I’m therefore thinking they terminate the tenancy at the end of July, and we set up a new one at the start of August, for £0 for August and September, then the full rent in October and November. This will be back loading, not front loading. They’ll therefore be responsible for bills over the summer, including council tax. Is that the best way to go about this? Or would this fall foul of some regulation I’m not aware of?
I’m just mulling over the options at the moment, and wondered if anyone had any opinions before I look into this further. It actually sounds like more hassle than it’s worth, but I do quite like the idea in principle.
Your idea wouldn’t work. It would be a replacement tenancy, so on the same terms and a judge would see through it. However, I think you’re unlikely to fall foul of the TFA restriction if your doing something to benefit the tenants. Theres almost certainly a lot of discretion in such cases, and even if the tenant brought the case against you, I think a judge would not accept their argument when your motives are clear.
@David122 can the rent not be reduced via a letter of variation to the contract signed by all parties and a written agreement. What’s the problem with that? It must happen and be reasonable that LLs reduce rents to allow for tenants changing financial circumstances instead of having to evict them ?
As the original intention was to rent up to July, if LL has previous evidence of that, then surely a change in rent for period after that couldn’t be considered front loading as there was never any intention for tenancy to last for the extra period in the first place.
Similarly a tenancy with different tenants on it (if one leaves) and a different amount, is a materially different new tenancy, not a renewal ?
Otherwise some sort of short term letting arrangement or ‘licensed occupier’ so they are occupying as a housesitter in return for taking care of the place?
Apart from the council tax (which @Rose32 must have been expecting to pay anyway over the summer), how about a house sitting arrangement where housesitters pay for/contribute to the utility costs? Such as Who pays for what? Your guide to house sitting costs in the UK - House Sitters UK
(Whom in any of these circumstances has an interest in taking a case to the Tribunal? Not the tenant or LL. Why would the council or govt seek to have a higher rent for a tenant during cost of living crisis?)
Thank you for your thoughts. I don’t know much about short-term letting, but Googling, it seems that a licensee would be liable for the council tax, rather than me, so that would be an option. Or (I’m assuming it’ll be one old and one new tenant) I could do a new tenancy in August, and they could hand in their notice around the time they move in. Yes, I think that could work, but I need to think about it in the morning - I’m a bit tired now!
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Yes, as I said I think there is quite a lot of latitude in this if the motive is to benefit the tenant.
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