Tenancy Question

[P4Pistonhead]

Hello there,

A group of students living in a HMO asked if they could be released from their tenancy earlier due to all classes being cancelled at university, the response was a no, and this was about 2-3 months ago. This week the agency forwarded this letter from the proprietor

'I am writing following up on previous communications about your early vacation of the property
May I ask have you considered a date when you will have vacated the property, its not a problem if
you would like to have legal procession of the property until the end of the term as the notice but
obviously I would like to attempt to remarket the property if I could and in turn release you from
financial responsibility if in fact you have vacated or are due to prior to the end of the tenancy
which is 27.07.2020.
Please advise, I will not communicate again with you if you do not contact me I will advise you will
be remaining in the property until the end of the term.'

Which the students replied to with
'Proposed tenancy termination date: 27/06/2020.'

And which the reply was:
'Legally you will be responsible for the property and rent until the end of the term but I can attempt to remarket the property if it was vacated earlier and IF a new set of tenants are found to move in prior to the end of your fixed term I can refund you any monies.
It is a difficult time to remarket a property especially of [Insert Address] size therefore I cannot guarantee you we can financially release you.
Ultimately the choice is yours as to when you provide the keys back to our offices, and when you move out – but to be clear you are still responsible for the whole rent until the end of the fixed term agreement being 27.07.2020'

---
The way the students interpreted it, is that if we agreed to moving out, they would not require us to pay any more rent. Could the students reply based on the technicality of the original letter wording, that they are moving out on x date and won't pay any more rent?

[Chrisgr31]

If it’s not a stupid question if Uni is closed etc why didn’t the students reply with a date in May?

I interpret the exchange as the landlord stating they will try and relet the property, if they do, then the students liability ceases on the day it is relet, if they don’t relet the students remain liable until the end of the original lease term.

[Lopey]

If they were to move out now, not only would they be responsible for paying the rent until it is relet, but will still be responsible for the condition of the property as they would if they were still living there.

[P4Pistonhead]

Chrisgr31 said:

If it’s not a stupid question if Uni is closed etc why didn’t the students reply with a date in May?

I interpret the exchange as the landlord stating they will try and relet the property, if they do, then the students liability ceases on the day it is relet, if they don’t relet the students remain liable until the end of the original lease term.

No such thing as a stupid question, I think it is primarily to do with most of the deadlines for coursework/dissertations/exams etc due around this time, and as most are at their actual homes, but ultimately nothing really stopping them from fully moving out before the end of May.

[Sir Bagalot]

It means the students are paying rent until 27.7 unless LL can find other tenants before this date.

In reality it means the LL gets the keys back a month early so can legally enter the property whilst still getting paid rent until 27.7

[Drawweight]

P4Pistonhead said:

No such thing as a stupid question, I think it is primarily to do with most of the deadlines for coursework/dissertations/exams etc due around this time, and as most are at their actual homes, but ultimately nothing really stopping them from fully moving out before the end of May.

Are you new here?

[anonymous-user]

P4Pistonhead said:

---
The way the students interpreted it, is that if we agreed to moving out, they would not require us to pay any more rent. Could the students reply based on the technicality of the original letter wording, that they are moving out on x date and won't pay any more rent?

That is a misreading of the letter. The landlord is obviously saying that he will let you off a bit off rent if he gets replacement tenants. That is all.

You have given nothing that would support a contractual variation, and you have incurred no detriment in reliance on a representation, so there isn't what lawyers call an estoppel here.

[P4Pistonhead]

Thanks for the replies everyone!

It seems there is no way out and rent will continued to be paid.

[SydneyBridge]

I assume there is a large deposit which the landlord can deduct any missing rent from?

Dont think there would be much chance of renting to students, who would want to move in before september.

Is the house is a location that could be airbnd'd for a couple of months?

[surveyor]

SydneyBridge said:

I assume there is a large deposit which the landlord can deduct any missing rent from?

Dont think there would be much chance of renting to students, who would want to move in before september.

Is the house is a location that could be airbnd'd for a couple of months?

Normally the demand is such thAt students often have to rent for the summer...

[P4Pistonhead]

The tenancy agreement was from August 2019 to July 2020.
The total deposit is £2800, and the monthly rent is £560 per person. And the house is split into flats, so as a HMO, charging per person, the owner is pretty much raking it in!
And the location of the property is in Hove/Brighton

[Wings]

Lopey said:

If they were to move out now, not only would they be responsible for paying the rent until it is relet, but will still be responsible for the condition of the property as they would if they were still living there.

^^^agree, and since the LL/Agent are not agreeing to an early surrender of the tenancy agreement,utility bills, council tax (appreciating that students are exempt) etc. etc. The mistake many LLs make in accepting the keys back before the fixed date of the expiry date,is to then either to use the return keys for access, and/or move into the property and start redecorating etc.

The LL/agent must be seen to attempt to re-let the rental property, must act, communicate with the tenant/s, as if the same were still residing at the rental property, request for potential tenants to be allowed to view rental property.

[tinnitusjosh]

I think you might have a problem with this bit:

P4Pistonhead said:

obviously I would like to attempt to remarket the property if I could and in turn release you from financial responsibility if in fact you have vacated or are due to prior to the end of the tenancy

It doesn't say they will be released if it is re-let, only that landlord wants to re-market it, and the students won't have to pay if they are due to leave.

Probably worth clearing that up, I would have thought. I suspect landlord has used 're-market' to mean "i have found a new tenant", which it doesn't.

[anonymous-user]

P4Pistonhead said:

The tenancy agreement was from August 2019 to July 2020.
The total deposit is £2800, and the monthly rent is £560 per person. And the house is split into flats, so as a HMO, charging per person, the owner is pretty much raking it in!
And the location of the property is in Hove/Brighton

You may not be aware that rental income is taxed. Renting is a business like any other. It has costs, and the profits are taxable. It can be a good business, but it is not money for nothing.

[Pit Pony]

Breadvan72 said:

P4Pistonhead said:

The tenancy agreement was from August 2019 to July 2020.
The total deposit is £2800, and the monthly rent is £560 per person. And the house is split into flats, so as a HMO, charging per person, the owner is pretty much raking it in!
And the location of the property is in Hove/Brighton

You may not be aware that rental income is taxed. Renting is a business like any other. It has costs, and the profits are taxable. It can be a good business, but it is not money for nothing.

My son rented 3 houses with his friends in York. The closer to the University, the higher the price and the higher the house price.
In one, I did the sums on yeild. Not the same as ROI, but then I don't know how much they borrowed.
The turnover was £36000.
The house price for a 3 bed semi at that end of town was about £250000.
I reckoned the extentions to side, back and top of the house cost £150000.
Total cost £400,000 for a £36,000 turnover.
So yeild wasn't quite 10%
Risks? Other cities have seen Unite and other private building of halls of residence, apparent depressing the bottom.end of the student market.
His experiences with letting agents and landlords was one reason I chose to invest in property. However, I've avoided students and scumbags, and gone for a family house on the edge of a nice area with good schools.
Yeild is lower but when it's been advertised we can pick the tenant, because demand is high.
I reckon my yeild (not ROI) is about 5%

[98elise]

Breadvan72 said:

P4Pistonhead said:

The tenancy agreement was from August 2019 to July 2020.
The total deposit is £2800, and the monthly rent is £560 per person. And the house is split into flats, so as a HMO, charging per person, the owner is pretty much raking it in!
And the location of the property is in Hove/Brighton

You may not be aware that rental income is taxed. Renting is a business like any other. It has costs, and the profits are taxable. It can be a good business, but it is not money for nothing.

Not only taxed, but loan interest (a legitimate business expense) cannot be fully offset if you're an individual. Companies can still offset all loan interest. It's possible to make a loss, yet still owe tax on profit.