What can be done?

There are many reasons that tenants decide need to leave from a property, sometimes before the end of their tenancy agreement.

So here are some thoughts into what landlords can do if this happens to you.

In principle, tenancy contracts are binding upon both parties and can be enforced in a court of law. But we have found that, in practice, negotiation is nearly always more effective and less costly than litigation. Good communication will always help

Speak to the tenants and try to help

There are invariably just two reasons why tenants want to leave early.

1. Their circumstances have changed

2. They are unhappy with what they are receiving as customers.

In both cases, there may be situations where your tenants feel that they have been let down by you, or your representatives, and are, therefore, entitled to break their contract and to get their deposit back. You might actually come to the conclusion that they are absolutely correct.

Can you claim and compensation?

It is possible that the tenant’s circumstances are changing for the better. If so, then the most sensible approach may be to split the difference with your tenant and to see if you can come to some form of settlement.

If you do chhose this option, then remember that your claim against your tenant (if any) would be a civil claim. This has several implications, one of which is that a court would expect you to take reasonable steps to mitigate your loss and your tenant’s exposure to any damages claim. A court might assume that most landlords should be able to have new tenants in place within two to three months of their old ones vacating.

You could, therefore, ask your existing tenants to help find a new tenant who is acceptable to you or get them to pay a break fee that is equivalent to two to three month’s rent whilst you attempt to find someone else. The advantage to you is that you can cover the costs of changing over the tenancy without taking legal action. The advantage to the tenant is that they can move out knowing that they won't be pursued for costs and/or of have their credit records negatively impacted.

If circumstances change for the worse the maybe just accept it

Often it is better to accept that if your tenants genuinely can’t pay then you are not going to get your rent.

There is absolutely no point in pursuing the matter through the courts. Should you get a judgment in your favour, you still have to collect the money. If they don’t have it, then you can’t get it!

Sometimes it is better to move on!