Advise on breach of agreement unfair charge

[dedhchal]

Hello,

I rented a property directly with the landlord (no agency involved). The contract was for 1 year from may-2014 to may-2015. I have got a job somewhere else and unfortunately have to move. I discussed this with the landlord and he agreed to let me find a new tenant (and I pay the rent until the new tenant starts). This is all Ok. However he is saying he would take all my deposit in lieu of the breach of contract. The point he is referring to in the contract is:

 

"In the event of the tenancy being terminated by the tenant before the end of the term the tenant shall pay the full cost of re-letting the premises to include any loss of rent incurred by the landlord as a result of the tenant's breach and the agent's fees normally payable by the landlord until the end of the term and the tenant shall remain fully responsible for all terms of the current tenancy until a new tenancy commences".

 

Is this correct on the landlord's part to take all my deposit as I've agreed to finding a new tenant (as no agent was involved) and pay the rent until the new tenant comes in. Is the landlord eligible to claim the agent fees from me for re-letting considering he is not incurring any costs for re-letting and there is no agent involved. What are my options? Will the landlord be eligible to claim agent fees if he decides to go with one?

 

Thanks

 

Best Regards,

Smith

Edited August 30, 2014 by dedhchal

[colin11]

i would check to see if he has protected your deposit in one of the protection schemes, if not, he will be in breach also

[dedhchal]

Thanks for your response Colin. I think he has put the deposit in the protection scheme. He forwarded the email which I did not bother to verify. However I believe he would have done so. What do you think are my options? Is the unfair demand actually fair? I'm just going by the above clause and feel I'm meeting it by providing the rent until and finding a new tenant.

 

Ta

[mariner51]

OP, a T cannot give Notice during fixed term, only offer early surrender, which LL can agree on his terms, to max rent due for remainder of fixed term.

The LL offer is not overly generous, but better than 9 month rent.

Get LL terms in writing. Perhaps set a 1 month limit for LL checks on anyone you propose as replacement, they have to be acceptable to LL.

I assume deposit = 1-2 month rent?

 

 

If a new job was a possibility, why did you sign for a 12 month fixed term rather than 6 months and then go periodic?

[dedhchal]

Thanks for your response mariner. The new job was not a plan but something that came up. I did ask the landlord for a six month break clause (which he agreed while discussing) however he did not put it in the contract and I did not bother (my mistake).

The person who will come in will have a new contract drawn on their name. I was only going per the above mentioned section and assumed (probably incorrectly) that since no agent was involved and I'm ensuring no rent loss to the landlord he should be Ok with the proposed plan. However, as you suggested its better than 8 months rent so maybe that's the best way forward. I'll probably ask him to give me in writing that I do not have anything pending once the new tenant moves in.

 

Thanks

[BRIGADIER2JCS]

Thanks for your response Colin. I think he has put the deposit in the protection scheme. He forwarded the email which I did not bother to verify. However I believe he would have done so. What do you think are my options? Is the unfair demand actually fair? I'm just going by the above clause and feel I'm meeting it by providing the rent until and finding a new tenant.

 

Ta

 

 

The deposit can only be used for repairs/replacement of articles/fittings damaged by the tenant as far as I am aware and cannot be offset against rent/arrears or breach.

[dedhchal]

Thanks brigadier. Are you saying I can ask for my deposit (minus any cleaning breakage if any once I've found another tenant.

 

Thanks

[raydetinu]

You can ask, however that is the terms the LL wants for the early surrender of the lease, you don't have to accept nor does he have to accept your surrender and offer to find a new tenant.

he does have an obligation to mitigate any loss and if that involves getting an agent ( or has to advertise ) to re let the property, you will have to pay.

swings and roundabouts I am afraid. bit does seem a reasonable compromise.

potential 9 months rent and agents fees against loss of deposit!

regarding any deposit protection; you should been have been notified with the certificate direct from the scheme with the PI!

LL is responsible that you get that anyway, witihin 30 days, and if not he is in breach of the ACT, so you could sue; so maybe you can use that as a bargaining point?

[BRIGADIER2JCS]

Thanks brigadier. Are you saying I can ask for my deposit (minus any cleaning breakage if any once I've found another tenant.

 

Thanks

Yes? But don't ask Demand!

[raydetinu]

just to be clear, deposit CAN be used by LL to offset unpaid rent arrears, check shelter site!

[BRIGADIER2JCS]

just to be clear, deposit CAN be used by LL to offset unpaid rent arrears, check shelter site!

Nothing to do with rent arrears.

[raydetinu]

Brig, you mentioned it first!

"The deposit can only be used for repairs/replacement of articles/fittings damaged by the tenant as far as I am aware and cannot be offset against rent/arrears or breach." post 6.

 

 

Lets hope OP can come to an agreement.

however LL can impose whatever terms he wishes to surrender contract early. If they cant agree then that's what courts are for, but hope it does not come to that.

[mariner51]

Yes? But don't ask Demand!

 

 

What is there to Demand? LL has the whip hand until end of fixed term in ~9months.

LL has some compassion by just asking for deposit cash value in exchange for his acceptance of Ts proffered surrender of a 12 month T.

He could have asked for up to 9 months rent, or just left OP responsible for rent & property until end of FT or poss cash equivalent to deposit+ fees, then returned deposit less any pot T damage and rent owing.

This way, LL gets his property back with no void and T is released, for the deposit value only.

 

 

What other equitable solution would you suggest Brig?

Deposit can be used for rent owing, if mentioned elsewhere in AST.

 

 

Tenants (& Gs) are liable for rent & property full fixed term.

T circumstances can change, but they must realise their offer to surrender is not equivalent to a NTQ. Negotiation, not demand is the requirement for best outcome.

[dedhchal]

Ok guys, I really need some help now. The landlord is now asking that I also get a rent guarantee for him from 'Home Let' in addition to getting the referencing done. That's costing about £31 monthly. He had not done any such checks for me because as per him I was referred by a friend. I'm getting a feeling he's using the opportunity to squeeze as much cash and get as much of his expenses transferred (which he had not done for me) to me.

Now, as he was showing me the contract section because of which he is 'usurping' my deposit I have read it again and here are my views:

 

"In the event of the tenancy being terminated by the tenant before the end of the term the tenant shall pay the full cost of re-letting the premises to include any loss of rent incurred by the landlord as a result of the tenant's breach" - I am doing this

 

"and the agent's fees normally payable by the landlord until the end of the term and the tenant shall remain fully responsible for all terms of the current tenancy until a new tenancy commences" - There was no agent involved when I rented so his threat that if we go to agent it'll cost 7% of the rent which I'll have to pay until end of contract seems to be a bit unethical and possibly unlawful.

 

Also, coming to the contract, he has used an old template which has a name of someone else as well at one point in the contract which I don't know. Also, the contract copy he sent me does not have any signature for landlord witness. And I have an email where I had requested that there be a 6 month break clause to which he has written in email Ok (email section below) and is now saying it would have been discussed but not agreed while I have 2 witnesses confirming that it was agreed there would be a 6 month break clause.

 

His email:

Thank you for your response. Hopefully I am available on Saturday and meet, at your place. Please tell me the time and I will be there. I may remind your liability to pay RENT £900 in advance from 17 May to 16 June, 2014 and sign the TENANCY AGREEMENT for one year without any breaking clause. The amount you have already paid £900 will be staying with DPS as deposit.

 

My email:

Thanks for confirming Mr. LL. I believe the rent for May would already be transfered to you by Mr. X. We will coordinate so that I'll pay X the rent amount for 17-May to 31-May and continue to pay rent from June onwards.

Regarding, the tenancy agreement, it would be good if we could have a breaking clause after 6 months. Although, I have plan and enough work to stay long term however given the nature of job it would be helpful that we have something to cover possibilities. We can discuss on this more when we meet.

Does Saturday 2 pm suit you for meeting?

 

His email

OK, Smith, see you on Saturday at 2 at your place.

[mariner51]

This is getting v confusing.

A timeline, with dates, of what was provided/discussed/agreed may help.

Any contract changes like break clause provision, should have been negotiated before committing to T.

When were those emails sent?

Who is Mr X?

Your OP was about costs for moving during fixed term. IMO nothing has changed, LL is still in the driving seat.

[dedhchal]

Here are the details mariner:

My friend X was staying in this place for several years as tenant. He wanted to move out and I was looking for a place so X suggested to LL that I'll move in and he does not need to worry about X's 2 months notice to which LL agreed.

Before moving in I wrote to LL that I would like for a 6 months clause to be present in the contract to which he agreed. However, I never bothered to check the contract when he posted to me later as all discussion was always very co-ordial.

I moved in on 17-may however X had already paid rent until 31-may so to avoid hassle to landlord of transferring half month rent back to X we sorted among ourselves and I paid X amount for 17-may to 31-may and from there on to the landlord.

25-aug I told the LL about my intention to move out. As I've written in the first post the contract says I have to pick up costs of re-letting, any rent until new tenant comes and agency fees.

I had meeting with LL and he put his demands that he wants me to advertise and get new tenant. And he'll keep my deposit. He did not mention anything about getting rent guarantee insurance at that time.

Now I've advertised and have several options as potential tenants who are all ready to move this week or weekend.

 

To be true with all this hassle, it seems it'll cost me the same as it would to give agency fees and agents fees for the remaining term of contract. And this is as per the contract as it does not say anywhere that the LL can put whatever conditions he likes. It only wants that I pay any rent until new tenant comes in and pick up re-letting costs and any agent fees which would have been due should the place have been let by an agent. Since there was no agent involved and I am getting a new tenant with all the paperwork, I don't understand how can all my deposit be taken or why I should now pay for rent insurance for LL.

 

Thanks

[raydetinu]

You don't have to accept the terms at all, up to you!

However you are liable for rent for the remainder of the contract.

best try and negotiate as best you can, or it could end up in court!

[dedhchal]

OK, for rent I'm providing a new tenant. But I get your view. Thanks guys