Lease Extension

Penguino

Need a bit of advice, I have been trying to resolve the situation through the 2004 Act but to no avail.

I have a tenant that signed a 12 month lease extension in Oct. The have know given us 60 days notice that they are moving out of the property.

The landlord is of the opinion that at least the deposit should be withheld from them.

Does the tenant have to get someone to finish the lease? Failing that, can the landlord legally withhold the deposit?

Agent Smith

Penguino wrote: »

Need a bit of advice, I have been trying to resolve the situation through the 2004 Act but to no avail.

I have a tenant that signed a 12 month lease extension in Oct. The have know given us 60 days notice that they are moving out of the property.

The landlord is of the opinion that at least the deposit should be withheld from them.

Does the tenant have to get someone to finish the lease? Failing that, can the landlord legally withhold the deposit?

If the tenant doesnt get someone to continue on the lease, they are pretty much expected to pay out the rest of the lease. (excluding a few factors)

Most landlords i've delt with will keep the deposit in lieu of this.

D3PO

if they signed a new lease they are bound to the fixed term in it.

Penguino

Thanks

Should I wait until the last months rent has been paid before approaching the tenant? The reason I ask is I want to avoid the situation whereby the tenant tries to use the deposit as the last months rent

Marcusm

Penguino wrote: »

Thanks

Should I wait until the last months rent has been paid before approaching the tenant? The reason I ask is I want to avoid the situation whereby the tenant tries to use the deposit as the last months rent

You need to tell the tenant immediately to allow them to limit their loss; if you do not, the landlord will have a much restricted claim against the tenant (and, if you are acting in a business capacity, a large one against you).

odds_on

Legal Expert wrote: »

You should attempt to relet and deduct the costs of this from the deposit. Any attempt not to mitigate a loss on your part would nullify any claim you have to the deposit.

Fully agree with legal Expert.

However, you should advise the tenant in writing (keep a copy) that should they wish to have their deposit returned in full, they are required to assign the remainder of the lease and that it is their responsibility to find a suitable replacement tenant. If you/landlord have to find the replacement, the current tenants will be liable for all reasonable costs as per the RTA 2004.

Penguino

Thanks for the replies

There should be no problem re-letting the property and I am happy to assist the tenant on this matter.

I just needed to get all the facts straight as I will be the intermediary between tenant and landlord