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toys19

Giving compensation to tenants for delayed work.

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Hi,

I have offered my joint ast tenants some compensation for some delays in building work at the beginning of their tenancy. I have also included interest as I had promised to pay them this a while ago, but have bee a bit slack. The problem I have is I want them to sign a letter agreeing that what I have offered is final , to prevent them form trying to claim any more. Not that I imagine that would be successful in any claim but I guess you need to cover yourself. I don't think they would have a problem signing as they really want the sum of money I have offered.

 

Note that one tenant has already with held some rent in respect of this matter.

 

So below is the text of my proposed letter, does anyone have any advice.

Also some of the tenants are difficult to track down so getting them all to sign at the smae time is hard, can I just give them a separate copy each? They are on a joint AST.

 

Thanks in advance

 

" Tenants names

Address

Date:

RE: Compensation for building at address.

 

 

We accept the offer of (amount) in compensation which represents one half of on months rent for the property, for the delays in the building work at (address) in the (month and year) as final settlement and release any further obligation to the landlord in this matter.

The sum of £xx has already been withheld by us in respect of this matter so the total sum payable now is £xx

 

Kind regards

 

 

Tenants Signature and Date "

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Your letter is fine. The only quibble that I have with it is that it seems to imply your acceptance that witholding of rent is acceptable. This may lead to subsequent problems for yourself with rent being witheld for any particular reason that takes the tenant(s) fancy simply becuse you accetped it being witheld previously.

 

While I am not privy to the full details of what the issues surrounding the property have been, there is certain stirct guidance that tenants should follow in witholding rent, and it shouldnt be done as a matter of course by tenants as a 'threat'.

 

I suggest you reword that particular part of your letter to state that the witholding of rent is not anj acceptable practice and any future 'witholding', will be met with the appropriate legal response. Set out a mechanism as to how problems should be reported and your timescales for resolving them.

 

That way both you and the tenants know where they stand if there are future problems.

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Thanks that's great advice cheers

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