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Original poster

Anyone understand how tenancy agreements work?

9 replies

VenetiaWarwick · 26/07/2019 16:27

Dc and 5 friends have just graduated and all staying in same city to work and 5/6 have signed the contract for a new house for a 12m period. Person 6 hasn't had the opportunity to sign yet.

One of them (not person 6) now has to drop out at short notice because has been offered a different job. Other 5 trying to find someone else to take their place but not looking hopeful. All 6 have paid a deposit/retainer/ and portion of month 1 rent (£600 each but i don't know the proportions).

So I was thinking the contract isn't actually in place yet as person 6 hasn't signed, but the agency is saying it is already in place and legally enforceable and that not only is the dropper-out still liable for a year's rent but also that the remaining 5 are liable for the whole year's rent (joint and several I believe is the phrase).

The agency chap was lovely but bombarded us with so much info I am completely confused.

Any help appreciated.

OP posts:

kshaw · 26/07/2019 16:34

I'd read the actual tenancy agreement, in my experience agents are not always the best so could just say stuff to scare you into paying as they could be liable to the landlord if untenanted. All tenancies will be different too

78percentLindt · 26/07/2019 16:38

Read the agreement- there is sometimes a 6 month break clause. Student houses sometimes omit them but AST often do.

Original poster

VenetiaWarwick · 26/07/2019 16:39

Thanks, dc hasn't got a copy as the agent said they couldn't give a copy until person 6 has signed it. Which I thought was a bit odd.

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tectonicplates · 26/07/2019 17:08

Will they get their deposits back if they don't move in?

Joint and severally liable contracts were created so that remaining tenants would be liable for all the rent if one person did a runner or dropped out. It is always easier to chase up the people who still live there, who usually end up finding a replacement flatmate at the last minute. But if they haven't even moved in yet then I don't know how that works.

78percentLindt · 26/07/2019 17:14

Insist of a copy of the contract with the current signatures on- then take it to CAB, talk to Shelter or even ask the Uni housing people for advice.

thecatneuterer · 26/07/2019 17:26

Person 6 doesn't need to sign if it's joint and several. It's the responsibility of those who have already signed to find a replacement or whatever. Those that have signed have already taken responsibility (as far as I'm aware - it's not a situation I've dealt with). I'm pretty sure the agency are correct.

thecatneuterer · 26/07/2019 17:29

HOWEVER - if they want to cancel they could make it clear to the agency that they are prepared to move in but will be unlikely to pay the rent (in full/at all) for the foreseeable future/ever. Unless they all have lots of assets or have guarantors, then the agency/LL wouldn't want to have to go through the lost rent and cost of eviction/bailiffs when it could be avoided. If they do have guarantors though then they can't do that.

CornishMaid1 · 26/07/2019 17:49

Is there one tenancy agreement which is being signed by 6 people or are they each signing their own tenancy agreement?

In my student days we had a house share, but each tenant had their own tenancy for their room plus communal areas, setting out just their share of the rent. In that case, yes the tenancies for the ones who have already signed could have been completed but they would be contracted by room and not be responsible for the rent of the person who had dropped out (which that person would be responsible for).

If there is just one tenancy which is to all 6 so they are 6 are renting the property as a whole, then the tenancy is not in existence yet as number 6 has not signed.

Ask for a copy of it so you can see what it says, but if they want out tell 6 not to sign, especially not before you see the tenancy and can take advice on it.

They may still lose their deposit they have paid to reserve the property, but if they have not entered into the contract that would make a difference.

thecatneuterer · 26/07/2019 17:54

cornishmaid. It's one agreement - it's joint and several. I think you're wrong. If the others weren't happy to sign without the sixth person they should have waited until everyone could be present. I'm not one hundred per cent convinced about this though as, although I know a lot about landlord/tenant law, this isn't a situation I've ever dealt with.

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