By Admin Tenancy Agreement 0 Comments

Can My Tenant End A Tenancy Agreement Early?

Tenancy Agreements are drafted for a particular reason, to protect both Landlords and Tenants. The terms and conditions included in this kind of agreement are important and should be complied with at all times – as much as possible.

Of course, there are times and instances when one of the signed parties may have the need to go against the agreement. For example, what if the tenant decides to vacate the property before the indicated end of the contract? For a landlord like yourself, you could be wondering about what you should do and what your rights are.End a Tenancy Agreement Early

Leaving During Tenancy

To answer the question above, the answer is yes. Your tenant can end the tenancy agreement early, but only if you agree. If there is a clear agreement between you and your tenant to terminate the contract earlier than the agreed date, then everything is legal and binding. This is what is called Surrendering Tenancy.

Your tenant can surrender their tenancy in two ways. The first one is by giving up their property occupation and by you accepting this. The tenant then hands over the keys to the property to you after you accepted that the tenancy is over and you once again have possession of the property.

The second means of surrendering tenancy is the legal way of declaring surrender. This happens when your tenant signs a written document called the Surrender of Tenancy Letter. This document proves that your tenant has voluntarily given up their possession of your property back to you.

It is important that you understand that your tenant cannot terminate the agreement unless you agree to it. If your tenant refuses to stay in the property and pushes with the termination of the agreement, you have every right to expect them to pay you for the rent that they should pay for the whole length of the contract. It is your tenant’s obligation to fulfil what is agreed on the fixed term agreement.

As a landlord, here are some of your options:

  • You can continue enforcing payments from your tenant since they are liable until such a time that the tenancy gets terminated legally
  • Your tenant can provide you with a new tenant, but you do not have to accept the new tenant if you do not deem them to be acceptable
  • You may allow the termination of the tenancy based on financial settlement – like if your tenant offers an acceptable compensation fee
  • You can also oblige your tenant to pay for the costs that would incur for finding new tenants – agency fees, advertising, and such

Or,

  • you can simply let the tenant terminate the agreement

In case your tenant informs you that they want to end their tenancy before the and date of the agreement, it is your right to demand an explanation. Then you and your tenant should discuss the possible settlements. Everything will be legally settled if you and your tenant can come to a mutual agreement that will benefit you both.

By Admin Landlord 0 Comments

What are the biggest mistakes Landlords make?

It is common sense that if you are managing rental properties, you know some of the basic rental rules. Even then, of course, it is always possible that mistakes can be committed. After all, Landlords are only humans.

The following are some of the biggest mistakes that Landlords commit:

Not Securing Deposits

You could be thinking that securing deposit is very basic and every Landlord should know this. The sad fact is that there are some Landlords who do fail to do this simple and practical task. Securing the deposit within the 30 days allocated time – from the minute it has been received – is very important. Failure to do so could mean trouble for the Landlord. If the Tenant finds out that their deposit has not been placed into TDS (Tenancy deposit scheme), they can prosecute their Landlord for three times the amount of the deposit. That would mean a big loss for the Landlord.Biggest mistakes Landlords make

Using a Non-Regulated Letting Agent

This is quite important. There are letting agents operating with no TPO membership, meaning they are not regulated. It is important to understand that if you are a Landlord and you need to use a letting agent, you are secured with reputable and regulated letting agents.

Skimming through contracts

It is never advisable to skim through contracts. It can be tiring to read contracts, but they are created for specific reasons. One of them is to provide security and protection for all parties involved. It is important to know that if you missed out a single line in the contract and you just sign it without full understanding of what’s involved, you could end up losing money or in jail. Negligence has a price, and sadly, it is always a high price. In the property rental business, it is essential that Landlords read through the letting agent contracts thoroughly. Most of these contracts are filled with fees and penalties, so be very careful before signing anything.

Providing Long-Term Contracts for New Tenants

One good piece of advice is to offer short-term contracts for new Tenants. This is the best for both parties. Why use a long-term contract for people you are just starting to negotiate with? A long-term contract can be used if the new Tenant proves to be a good one.

Not Doing Property Inventories

One of the most common mistakes Landlords make is skipping the property inventory process. If you let a new Tenant into a space that you have not properly checked out, you would be putting your business at risk. The new Tenant can always complain about something not right in the apartment and there is no way for you to prove that they may have done the damage themselves because you have no idea how the place looked before the Tenant moved in.

Not Doing Regular Property Inspections

This is a bit similar to the one above. Landlords should always inspect the property on a regular basis. This process can prevent a lot of stress and hazards. It can also help the landlord identify problems in the rental property, which could mean solving them before they become too much to handle.

Aside from these mistakes landlords typically commit, there are several others that could fall into the category. The important thing is for the Landlord to know the basic rules and from there, hopefully, mistakes can be effectively avoided.

By Admin Landlord 0 Comments

My Tenant sets fire to property- What to do?

Accidents happen, but sometimes there are incidents that people may see as accidents, but in reality they are not. For instance, if your Tenant sets the property on fire, they could claim it to be unintentional and thus an accident but do you have to trust their word on it? What’s the best thing to do? Have the incident investigated, of course. Then you should review your contract. You also need to get in touch with your insurance company. As the Landlord you have a lot of things to do; since you are the one who has the full responsibility for the property and you are also going to bear most of the loss.Tenant sets fire to Property

Setting the Property on fire intentionally

One of the most common reasons why Tenants set fire to a property is when they think they are being evicted unfairly. Sometimes a terrible misunderstanding or argument between the Landlord and Tenant could end up with the property being heavily damaged. If the investigation results with intentional act on your Tenant’s part, then you have every right to file a case against them.

Additionally, you are also entitled to make an insurance claim, since you did not cause the fire. You have to keep in mind that as long as you – or one of your family – has nothing to do with the fire that cause damage to your property, then your claim is going to be paid.

The important thing is to be able to prove that the fire was caused by your tenant. There have been cases where fire claim insurance was not paid because the investigation result was mysterious.

Fire or building insurance is basically explained as a policy that insures the property for damages that may result from fire. This can be caused by fault or negligence by you (the Landlord), your Tenant or something else – natural disaster like hail or wind, leaky pipes, vandalism and malicious mischief. In the case of Tenant’s negligence or intentional act, you may still be covered if the policy includes fire, as a covered peril.

Getting in touch with the Insurance Company

So, the most important thing that you should do if your tenant sets your property on fire is to get in touch with your insurance company. Do not assume that the firm will contact you or that someone else will do that for you. You own the property, you are the one insured, you take responsibility to make that call.

It is essential to document the incident and by calling your insurer right away, you are setting your claim in motion. If you live in the same building, your insurer will also be of help when it comes to temporary lodging and expenses.

Acting responsibly is basically the best thing that you can do. Of course, you need to be perfectly calm to be able to do that. So, make sure you are in the best condition to talk before you make that call. You need to be able to discuss the details with your insurer.

By Admin Break Clauses 0 Comments

Tenanycy Agreement Break Clauses EXplained

What are break clauses in Tenancy Agreement?

This is an agreement which if found in the tenancy agreement that gives both parties the opportunity to prematurely terminate the tenancy agreement. Example a 24-month contract can be terminated after 12 months. The breaking of this clause can be undertaken by either the tenant or the landlord provided the correct procedures are followed. break clauses in Tenancy Agreement

One thing that needs to be noted is that even if a break clause is included in the tenancy, the court is prevented from awarding possession to the landlord due to the Housing Act 1998 until six months of the tenancy has passed. The landlord may have the right to evict tenant using one of the seventeen statutory ground of possession and should serve a Section 8 Notice before. It also has to be noted that, break clause can only be enforced 6 months into the fixed term of the tenancy.

Tenancy Breaking Notice

If a landlord wants to enforce the break clause, he/she is required to serve a written notice (Section 21 Notice) to the tenant at least two months before the eviction date. The same goes for the tenants too: they should submit a written notice known as the Tenancy Surrender Notice. But the tenant enjoys some statutory right which allows them to submit a one-month notice if they want to end the tenancy after or on the fixed term.

Why use the break Clause?

Break Clause bring flexibility to both the landlord and the tenant. It provides them with the opportunity to break mutually the tenancy agreement due to personal circumstances like a change in the financial circumstances of the tenant, relocating of the tenant to another place due to work or even when the relationship between both get soar.

Is Break Clause the Best?

This is a question with an indirect answer. Some find break clause flexible others too do not. One would not want or like to use break clause because they deem it to be scary.

Let us take this scenario below:

Assuming a landlord wants to use break clause and sends his/her tenant a notice; in this case, if the tenant refuses to vacate the premises after the date, then the landlord will have no option than to proceed to court in other to get an order possession. The court will now decide if the break clause is valid or not and if they are not happy with it, then the landlord will not get possession.

What can happen that will make the court unhappy with the break clause?

Well the break clause is drafted in a way that is fair to both parties. If the court decides it was fairly or properly drafted, then the landlord will have a better chance of getting possession but if the court decides otherwise (if it was drafted to favour the landlord), then it is unlikely to be enforced.

To this point, a break clause should be fairly drafted with high degree of legal expertise.

Alternate Methods to Break Clause

Looking at the “problem” an unfairly drafted break clause can bring, some landlords choose to go by the 6-month tenancy agreement method. Here the landlord will rent out the property for a term of 6 months which is subject to renewal. This way if the landlord or the tenant wishes to end the tenancy, they can easily do it without the break clause.

Here if a problem is to arise and the tenant refuses to vacate the property after a valid possession notice (section 21) is served to him/her, the landlord is assured of possession if the case is taken to court.

Do you use break laws?
Unfairly drafted break laws is one of the main causes of dispute between tenants and landlords. It is advisable to seek a professional help in drafting one.

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By Admin Landlord 0 Comments

My Tenants Have Changed The Door Locks, Can They Do?

Tenants changing the locks to your property is understandably an unnerving prospect – after all, nobody wants to be locked out of a property they legally own. So if your tenants do take this action, do they have a right to, and what can you do about it?

The Tenancy Agreement

The answer to the above question depends on what is in the Tenancy Agreement. If you included a clause forbidding your tenants from changing the locks and they do so, they are clearly in breach of contract. However, the only thing you can do immediately in this situation is to take out an injunction against your tenants which is a costly and time-consuming measure. If the original locks have been retained you could ask your tenants to return the locks to normal when they move out at their cost. Alternatively you could withhold part of their deposit to cover the cost of changing the locks again when they leave.Lock changes

If there is no clause in the Tenancy Agreement regarding change of locks, tenants are within their rights to change them and are not obliged to provide you with a key. When a tenant signs a tenancy agreement this is considered to be an ‘estate in land’ – essentially, the tenant ‘owns’ the property for a period of time as determined by the length of the lease, and so they have the right to make certain changes, including changing the locks.

If the lock change causes damage to the fixtures or fittings of the property, it is the tenant’s responsibility to rectify this at their own expense. If they don’t, you can withhold part of their deposit to cover the cost of repair. Also, you should make sure the lock is adequate, not only for the basic security of the property but also in line with your insurance policy as these sometimes specify the type of lock required. If the lock is inadequate then action must be taken, for the safety of your tenants as well as your property.

Access to the property

This raises the question of how the landlord can gain access if the tenant can change locks and not provide them with a new key.
Tenants are obliged to allow the landlord access to the property, but this does not mean that the landlord can ‘let themselves in’. Adequate notice should be given if you need to enter the property, and this would allow for the tenant to arrange to be present to let you in.

By law, tenants have a right to quiet enjoyment of the property, which means that landlords do not have the right to enter the property without their permission. This cannot be changed by the Tenancy Agreement. Tenants should always be contacted to give notice of your intention to enter the property and to arrange access. There is some query in the law as to whether landlords have a right to enter the property for inspection purposes, or purely for measures such as Gas Safety Checks or repairs. Either way, notice must be given.

If you are unsure about whether your tenants have a right to change the locks, or if they are refusing access, it is always best to seek legal advice.