UK Landlord Forum / Life

Hello.
I've had 3 tenants in my flat for 3 years on a single, joint tenancy agreement. All good.

However, one of them wants to move out in May, and the remaining tenants wish to bring in someone from spareroom.com. Naturally that adds an element of risk as the new tenant may turn out to be a financial risk or just batshit.

The existing tenants don't want a new contract with this 3rd person - which I get - but need to protect my interests and ensure I get my rent AND I can't evict if they don't.

Anyone else encountered this and found a way to minimise their risk? Would rent-protection insurance perhaps provide some kind of backstop?
thanks!

You can do nothing and leave the tenancy with the three people who are currently on the tenancy or you can begin a new tenancy with the two remaining tenants. If you start a new tenancy, the third person is their issue - they'll be their lodger.

The new tenancy will need to be set up properly as a completely new agreement, nothing carries over from the previous tenancy.

This will still be a small HMO, so I'd imagine rent insurance might be tricky, but it's probably possible. But as the tenant's lodger is nothing to do with you, they're not a particular risk.

Or, as I say, just don't change anything.

If you do nothing at all the outgoing Tenant could still be liable for the performance of the contract.

I would agree with ending the first tenancy, put all three on individual AST's but before accepting this new person I would put them through Tenant Referencing.

You want to have a very solid inspection because the person leaving will still have a liability as long as the current tenancy continues.

I would increase rent to current market value to all of them and charge the two existing Tenants £50 for new contract, if they were not agreeable with all of this I would refuse the new person.

If you have any liabilities such as failing to serve the Prescribed Information relating to the deposit you can expect the outgoing Tenant to bring a claim for that and/or any other defect, so you might want to settle that if there is an issue.

The deposit will need to be returned and each Tenant provide again, you will need to serve all the paperwork to all Tenants.

Of course the first Tenancy might be past the the original term which would have created an SPT ( unless it was a CPT to begin with) so double for deposit sanctions if they are due.

You won't get rent protection insurance unless you do Tenant Referencing and such insurance may have terms reducing their liability if the proper tenants sublet.

You could issue each Tenant with their own 6 month contractual periodic tenancy and only accept the new tenant if they pass the referencing, in fact that would be my starting point, will the person they propose pass such referencing?

One has to ask why the existing Tenants do not want a contract with the new person, is it the notice flexibility they currently have or is this person unreliable.

At least this way it is clean, you get to increase the rent to market value and if any of them needs to leave in future you only have one person to deal with.

Quote from: captaincrunch on February 23, 2025, 12:55:25 PMHello.
I've had 3 tenants in my flat for 3 years on a single, joint tenancy agreement. All good.

However, one of them wants to move out in May, and the remaining tenants wish to bring in someone from spareroom.com. Naturally that adds an element of risk as the new tenant may turn out to be a financial risk or just batshit.

The existing tenants don't want a new contract with this 3rd person - which I get - but need to protect my interests and ensure I get my rent AND I can't evict if they don't.

Anyone else encountered this and found a way to minimise their risk? Would rent-protection insurance perhaps provide some kind of backstop?
thanks!

Quote from: Marie on February 24, 2025, 01:56:19 PMI would agree with ending the first tenancy, put all three on individual AST's but before accepting this new person I would put them through Tenant Referencing.

If they're on individual ASTs the landlord is responsible for the council tax.

QuoteI would increase rent to current market value to all of them and charge the two existing Tenants £50 for new contract, if they were not agreeable with all of this I would refuse the new person.

If these are new tenancies replacing periodic tenancies that £50 isn't allowed.

QuoteIf you have any liabilities such as failing to serve the Prescribed Information relating to the deposit you can expect the outgoing Tenant to bring a claim for that and/or any other defect, so you might want to settle that if there is an issue.

All of the tenants would have to make a claim.