Options if any?

spindizzy

Hi,

3 weeks ago a prospective Tennant gave me money towards a deposit as a holding deposit so I took the property off the market. A week ago the 2 tennants signed the lease and everything was fine. This morning i arranged a time a place to meet up to exchange the security deposit and 1st month rent for the keys. So all sounds good, lease signed, some money down. I just got a text expecting it to say they were on the way to meet me but instead it said "sorry, can't move in!".

As lease was signed and money paid do I have any legal rights or anything to insist on something towards even the first months rent or untill a new Tennant is found?

Snakeblood

spindizzy wrote: »

Hi,

3 weeks ago a prospective Tennant gave me money towards a deposit as a holding deposit so I took the property off the market. A week ago the 2 tennants signed the lease and everything was fine. This morning i arranged a time a place to meet up to exchange the security deposit and 1st month rent for the keys. So all sounds good, lease signed, some money down. I just got a text expecting it to say they were on the way to meet me but instead it said "sorry, can't move in!".

As lease was signed and money paid do I have any legal rights or anything to insist on something towards even the first months rent or untill a new Tennant is found?

If they signed the lease, they're liable for all the cash, aren't they?

I mean, I don't know the term of your particular lease, but I thought that if there's a lease, they've agreed to pay the money owing over twelve months, and if they don't, they have to move someone else in who will, or pay your expenses to get someone else in.

Not sure though.

ballooba

You might need to educate them on contract law the hard way. Are you interested in partial compensation?

EDIT: My suggestion is to tell them they have a lease and have to move in or you will be suing them. In the mean time re-advertise it, but keep that fact from them if possible. If you fill the place, then sue them for the time between when they should have moved in and when the new tenant moves in plus advertising.

djimi

Did they give you a reason why they cant move in?

How much of their money do you have so far? Technically they have signed a lease and they are liable for the full amount of the term of the lease. In reality you have their holding deposit which you should keep to make up for loss of rent while the place remains empty and cost of readvertising.

murphaph

Ignore the advice to sue. It'll cost you far more than you'll ever recover. Keep their deposit and get new (suitable) tenants asap. You could then send them a demand for the lost rent/costs assuming their deposit doesn't cover it. You could threaten legal action in the letter but if it's ignored, don't spend one penny on legal advice here-trust me: you will never get more back than you spend on solicitors. You could well get a judgement, but getting that and getting your money are two completely different things

spindizzy

Thanks for the responses. Unfortunately I only have a holding deposit, about 30% of the security deposit. They gave gave me no reason for deciding not to move only a text citing "family situation".

That worst part is that it leaves me in a really bad situation as this is not an investment property but one I was forced to move from due to work commitments and paying the mortgage is killin me!!!!

The_Conductor

A holding or security deposit is normally 1 month's rent in advance. You may have as little as a week's rent here.

Once they sign a lease, they are liable for the lease, come what may. They may reassign the lease (sublet) with your approval- however the specified rent as per the lease, is due to you for the term of the lease.

You now need to get a tenant in-situ asap. Unfortunately you have gotten stung on this- you can chase them (and you will be fully in the right to), however, is it worth the time, effort and expense?

Unfortunately part of letting a property is dealing with people who don't give a damn about leases, and you also will have vacant periods, unless you are very very lucky. To be honest with you- given the form of your prospective tenants thus far- I'd be inclined to call it a lucky escape on your part- and if you're having a problem with the mortgage while its vacant- organise a meeting with your mortgage advisor, its not in their interest to have you default on the mortgage.......

ballooba

Pocket the holding deposit, advertise for new tenants and lodge the PRTB or Small Claims complaint?

murphaph

ballooba wrote: »

Pocket the holding deposit, advertise for new tenants and lodge the PRTB or Small Claims complaint?

Small Claims Court doesn't play any role in landlord/tenant agreements unfortunately. As the tenancy never began, I presume it was never registered with the PRTB, so not sure what could be done there either. The OP just got stung tbh-plenty of shoddy tenants out there unfortunately, despite the fact that we usually only hear about the shoddy landlords.

ballooba

I'd be very surprised if the only forum for this dispute were the district court.

murphaph

ballooba wrote: »

I'd be very surprised if the only forum for this dispute were the district court.

I wouldn't. Our commercial landlord/tenant dispute went straight to the Circuit Court owing to the sums (tens of thousands but not hundreds of thousands) owed. What other avenue could be available? It's a breech of contract law tfhat's not covered by the Small Claims Court so it has to go to the District Court at least I'm afraid.

ballooba

Looks like you're right. District court.