I have tenants due to move in 1st Feb. They’ve informed me that they may not be moving in after all.
Can I hold them to the Terms of the Occupation Contract (Wales) and insist they pay the rent- at least until the property is re-tenanted?
I’ve held the property after bond was paid and contracts signed since late September for them. My current tenants move out 31st Jan and this potential cancellation could cost me months of rental income.
That is very early to sign contracts 4 months before tenants move out. What would happen if present tenants do not move out? You have put yourself in a sticky situation. As to what they will pay you , may depend on if the present tenants REALLY do move out
@Jason56 you may be able to hold them to a contract but do you really want people living in your place who don’t want to be there? Ask them for a decision in the next week and say you will release them from contract in return for 2 months rent and agree to 1 month reluctantly. Or just keep the ‘bond’ which was presumably held to reserve the property (you don’t say how much this was).
You could propose they pay till you find new tenants but personally I’d cut my losses and be reasonable rather than legalistic.
Zoopla (Dec 25) reports average time to rent (time on the market) 17 days so assuming you start marketing again in a weeks time and allow a month ish from accepting a holding deposit to people moving in then you should still have new tenants around the start of March. So a months rent should cover the extra void period.
As @Colin3 says allowing no void period between tenants means you were taking a risk of current tenants not moving out on time, also doesn’t allow any time for cleaning or any repairs between tenancies.
Tbh worrying about a months rent void period feels like penny pinching. You want the right tenants who will stay a long time (average time for tenancies is 3 years for E&W according to DPS) for which 1 month is less than 3%. I think assuming you have void periods and costs (council tax utilities) during them makes more sense.
Good luck
The present tenants are 100% leaving on time, they have been self building and their property is move in ready, has been for some time.
Its not the case of them living there if I hold them to contract. Lead tenant is living in Lindon currently and will stay there if he doesn’t take my place.
Its £1800 pcm rent and bond, so it’s not peanuts. However, I think you’re right…maybe 3 months rent whilst I re-market? At that price point it may not rent within the average time frame.
The tenant has already said he won’t leave me out of pocket (after I posted) so I think he’s willing to cover his obligations until I re-rent.
Thanks for the advice
Check what the Welsh legislation allows before you attempt to charge them anything.