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Lulu999
06-11-2009, 15:22 PM
Hi All,

My tenant is leaving after 3 months of a 12 month AST.
They are of course liable for the rent for the remainder of that period, and I am obliged to try and find a tenant to mitigate that liability.
I have found a new tenant, but one who only wants a 6 months AST.
How does this affect the liability of my original tenant for the 3 months after the 6 months with the new tenant?
Would I be within my rights to hold onto the deposit until a further tenant was found to cover the last 3 months of the original 12 month AST?

Thanls
Lulu

NoMoreFaith
06-11-2009, 15:32 PM
You are not obliged to find another tenant, but it would be common sense to do so.

I would set up a written agreement with the tenant that they pay your reasonable costs in finding a new tenant (agent fees or referencing fees if you do so yourself etc). Payable subject to the replacement tenant signing an agreement.

If a new tenant only wants a 6 month lease however, it might be best to just go with it than the hassle of a tenant who doesn't want to be there.

These are just opinions thou, not statements of what you should do, because as I said, you are not obliged to find a new tenant.

westminster
06-11-2009, 16:24 PM
Hi All,

My tenant is leaving after 3 months of a 12 month AST.
They are of course liable for the rent for the remainder of that period, and I am obliged to try and find a tenant to mitigate that liability.
You're not obliged to mitigate your loss by finding a new tenant. See
http://business.timesonline.co.uk/tol/business/law/reports/article1289254.ece

I have found a new tenant, but one who only wants a 6 months AST.
How does this affect the liability of my original tenant for the 3 months after the 6 months with the new tenant?
Would I be within my rights to hold onto the deposit until a further tenant was found to cover the last 3 months of the original 12 month AST?
If you take a new tenant, that effectively shows that you have agreed to a surrender of the previous tenancy, so no rent can be due for any period after the start of the new tenancy.

You can only claim rent arrears from the deposit if there is provision to do so in the tenancy agreement. (If not, the T is still liable for arrears; you'd just have to pursue the debt via a court claim).

Lulu999
06-11-2009, 21:09 PM
Thanks for your replies.

Fortunately I have a clause in the AST that allows me to claim rent arrears from the deposit.

Not sure what to do about taking the new 6 month tenancy though. I think you're probably right in that I should take it (if for no other reason than to avoid litigation with the current tenant - although there is a guarantor). I might try negotiation over the potential 3 month loss of rent. (Their potential downside is they have to pay me 9 months rent, etc, when they don't want or need the place.)

mind the gap
06-11-2009, 21:11 PM
(Their potential downside is they have to pay me 9 months rent, etc, when they don't want or need the place.)

That is essentially their problem, not yours.