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Tenant terminating early - options..?

Started by bigjeansie, January 05, 2015, 02:27:16 PM

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bigjeansie

Hi
I have a tenant that has signed an AST for 11 months under HMO.  We are now part way through the contract and she demands that she is leaving due to seeing a mouse (which was caught within the week and the hole identified and filled).  She refuses to pay the contract out which leaves me light of about £1600 on the contract.
Not having been in this situation before, I would love to know what my options, if any.  Any advice gratefully received...

Kind regards,

Riptide

When you say 'Pay you out" you want her to pay the remaining months she has left on the contract, i.e 3 months then the room will be empty and you'll re let it and get another £1600 off someone else at the same time?

bigjeansie

Yes, there is another 6-7 months to run under the contract. Fulfilling the contract would generate in excess of 1600. As the contract term was 11 months and this is clearly breach of contract I would like to know what options I have and what my next steps should be should I wish to ensure the value of the contract is made good. I don't care if she stays or not as I should be able to rent the room out again.
Cheers

Hippogriff

Quote from: bigjeansie on January 05, 2015, 04:15:33 PMI don't care if she stays or not as I should be able to rent the room out again.

However, if the Tenants pays you but does not stay there, then you cannot let the room out again - you don't get double-bubble.

However, the Tenant signed a contract and has to honour that contract... this means the Tenant should pay up until the end of the contract. Mice and rats and various other creatures live with us in this world - the sight of a mouse is not a valid reason for unilaterally terminating a contract, especially seeing as action was taken to rectify the situation. However, if the Tenant was to find you another suitable Tenant, they could put them in, in their place, and only pay you rent up to that point. If they leave now and you get another Tenant in, say, a month and you had to pay re-marketing costs to get that new Tenant, then the old Tenant is liable for the time the room was empty and also for the re-marketing costs - but not for the whole term - as you have mitigated your losses, which it is your duty to do.

See the second paragraph from the lovely Wikipedia - http://en.wikipedia.org/wiki/Mitigation_(law) - a US-centric view, but applicable in most civilised nations, I believe.

Whatever happens, you should be due the rent you are due, but no more. The next step in trying to make sure the Tenant pays up would be to formally write and ensure that they are in no doubt that you would go to Court to recover what is owed... and then follow-up.

Hippogriff

By "duty", I mean it's something you should do... just in the interests of fairness yourself. I am sure there are cases out there where Landlords have taken no such measures and have sued Tenants who left a property early for the full remaining rent.

bigjeansie

I don't have another tenant and the girl leaving has no intention of being reasonable. Good advice. Thanks for your help
Regards, E

Riptide

Quote from: bigjeansie on January 05, 2015, 04:15:33 PM
Yes, there is another 6-7 months to run under the contract. Fulfilling the contract would generate in excess of 1600. As the contract term was 11 months and this is clearly breach of contract I would like to know what options I have and what my next steps should be should I wish to ensure the value of the contract is made good. I don't care if she stays or not as I should be able to rent the room out again.
Cheers

You can only sue for losses incurred.  If you rent the room out again the loss will not be £1600.

Hippogriff

Quote from: bigjeansie on January 05, 2015, 04:34:19 PMI don't have another tenant and the girl leaving has no intention of being reasonable. Good advice. Thanks for your help

So, myself, I would be working hard now to get another Tenant in. Once that is done, you will know how much of a loss you have incurred... say £X days of rent and £Y in re-marketing costs... that figure won't change, it's easily defined and hard to argue against. Then I would sue the ex-Tenant. I would write, now, to the ex-Tenant - though - and make them fully aware of your intentions. If you've been asking for £1,600 up to this point, maybe that is why they've been unreasonable? I can't say for sure, but maybe the other figure (which will be less than £1,600) might be more palatable... if not, then you should be very confident of a win at Court... you've done everything you possibly can to mitigate your losses and through the actions of another you have definitely incurred losses. You should not be responsible for that.

Hippogriff

This seems an interesting case, in favour of the Landlord, although the caveats for me would be it's back in 2006 and it's on the commercial side of things...

http://www.consumeractiongroup.co.uk/forum/showthread.php?116844-Tenant-leaves-early-whether-landlord-has-a-duty-to-mitigate-his-losses-new-caselaw

...personally, I'd still attempt to mitigate by re-letting.

boboff

I'D go the Frozen route personally.



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"LET IT GO, LET IT GO, THE MOUSE WOULDN'T BOTHER ME ANYWAY"