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View Full Version : Bond/Deposit - can it be used for missed rent?



weststreet
23-02-2008, 17:41 PM
Does anyone have a link for registered deposits showing dedctions that can be made from them ?

Story is flat was let at Xmas to a young couple on 6 month AST. Couple have split up and the boyfriend has disappeared. Agent telephoned to explain this. Girl wants out of the property and lease because she can't afford it. I've agreed to release her ( rent will be paid up till end of Feb ) and agent is frantically remarketing the flat. Agent has also waived their introduction fee due to the circumstances. If there is a void between the new and old tenant I assumed the deposit could go towards it - but the agent has said the deposit can only be used to pay for damage to the flat. Is this correct ?

I'm getting the feeling by AGREEING to let her break the lease I've lumbered myself with the cost of any void. At the time of the phone call I just thought there's no point holding her to the contract as she can't pay - just get the flat relet asap. I was surprised to be told the deposit couldn't be touched if the flat is returned in good condition.

What do you think ?

Colincbayley
23-02-2008, 17:49 PM
[QUOTE=weststreet;64609] If there is a void between the new and old tenant I assumed the deposit could go towards it - but the agent has said the deposit can only be used to pay for damage to the flat. Is this correct ?

QUOTE]

Depends what it says in your AST. If it says the deposit can be used against the rent then no problem.

In this type of situation the norm is to get the out going tenant to sign a letter confirming that they will continue to pay the rent plus all re-letting costs up until a time a new tenant takes up the property or until the end of the fixed term. Normally works.

weststreet
23-02-2008, 17:53 PM
Thanks Colin

I'll get on to the agent on Monday, I only got the news on Friday.

Colincbayley
23-02-2008, 17:56 PM
Thanks Colin

I'll get on to the agent on Monday, I only got the news on Friday.

If you send me a PM with your email address then I can email over to you a template of the letter that I use on Monday ( not at my own computer today )

Bel
23-02-2008, 21:16 PM
Your agent is pretty rubbish if they didn't suggest this to you in the first place...perhaps they are best friends...but she should be looking out for YOU and not the tenant.

Get a new agent next time.

weststreet
24-02-2008, 18:37 PM
Your agent is pretty rubbish if they didn't suggest this to you in the first place...perhaps they are best friends...but she should be looking out for YOU and not the tenant.

Get a new agent next time.

Interesting Bel. I've always been very happy with this agent, they've been excellent and would have recommended them. But after speaking to them Friday I got the impression they were bending over backwards to help the distraught girl. ( their word ) - I thought it was my imagination !

Colin's kindly sent me the template letter so Monday's phone call will be interesting.

Planner
24-02-2008, 20:15 PM
QUOTE]

Depends what it says in your AST. If it says the deposit can be used against the rent then no problem.

In this type of situation the norm is to get the out going tenant to sign a letter confirming that they will continue to pay the rent plus all re-letting costs up until a time a new tenant takes up the property or until the end of the fixed term. Normally works.

The problem is there isnt going to be any "missed rent" is there?, from what I read rent has been paid to cover when they moved in to when they have left, theres nothing "missed" as such. I think you have done yourself in the foot letting her leave early, but whats the alternative? having her still in there without being able to afford it?

I suspect the most you can expect from the deposit would be readvtertising costs etc. I dont think you will be able to justify a void.

Ericthelobster
24-02-2008, 21:36 PM
I suspect the most you can expect from the deposit would be readvtertising costs etc. I dont think you will be able to justify a void.Why not, though - it's still lost 'rent', isn't it, which the original tenant would be liable to pay until such time as a suitable replacement moves in?

Providing the AST covers this, as has already been pointed out.

Planner
24-02-2008, 22:50 PM
Hows it rent? the ladlord has agreed to terminate the contract. There cant be "rent" when theres no contract.

Colincbayley
25-02-2008, 08:22 AM
Hows it rent? the ladlord has agreed to terminate the contract. There cant be "rent" when theres no contract.

That would depend on the terms agreed for the termination of the contract.

pcwilkins
25-02-2008, 13:59 PM
That would depend on the terms agreed for the termination of the contract.

Surely LL can't say "I'll release you from the contract at the end of February if you pay the rent up until the end of March"?

If rent is still due after the end of February, then contract has not been terminated at the end of February.

Peter

jeffrey
25-02-2008, 15:13 PM
Surely LL can't say "I'll release you from the contract at the end of February if you pay the rent up until the end of March"?

If rent is still due after the end of February, then contract has not been terminated at the end of February.

Peter
True, but L might allow early surrender (e.g. at end of February) only if T pays a mini-premium equal to rent for first half of March.

Grange
25-02-2008, 15:23 PM
Can you terminate a lease orally?

jeffrey
25-02-2008, 15:30 PM
1. No, if you're L. You have to use s.8 or s.21.
2. Yes, if you're T (but only if L agrees to accept an early surrender).

Oral agreements are always fraught, for lack of evidence. The great Sam Goldwyn once said, "A verbal agreement ain't worth the paper it's written on." Treating 'verbal' [= by words] as meaning 'oral' [= by spoken words], he was quite right.

weststreet
27-02-2008, 22:00 PM
Just thought I'd let you know what happened.

The AST has the tenants responsible for any void resulting from a termination of the 6 month tenancy. No question.

The girl has mostly paid the Feb rent, housing benefit element in pipeline. Both girlfriend and boyfriend have been into agents to discuss ( with mums in tow ) and understand their liability.

My concerns initially :
- If there's a void, although the couple are liable, there may be no cash to pursue.
- The girl has nowhere to go. She was looking to share with a female friend so looking for a two bed, but they can't afford the going rate. My heart sank thinking eviction, hassle, time etc.

It has been provisionally agreed, that the girl can stay. Her female flatmate moves in ( sofa in living room ) and the six months continues to term. Provisional on March's rent being received on time. If that happens, boyfriend will come off and flatmate goes on lease. That gives them time to sort out a two bed to go to end of June, and gives me continuity till June. Agent then has adequate time to find a more 'reliable' tenant.

So that's what's been provisionally agreed. It can work. We'll see whether the rent is paid promptly. I wouldn't have considered it, but the flat is being kept well. she's answering her phone/talking to agent, and coming up with cash. So hopefully it might work.

Thanks for the help.