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Legal matters

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Original poster

Tenants wanting money back…

45 replies

Newyearnewus · 06/04/2023 13:40

I rent a cottage out to a young couple. All done and managed via an estate agency so all legal stuff is covered and their deposit is protected.

Couple were contracted for a year and paid upfront- as a result I gave them a small discount on the rent. I decided this year I’ll be selling the property so I told them in advance so it wouldn’t come as a shock. Legally I couldn’t serve them notice straight away so I informed them of my intentions out of politeness and agreed to touch base later in the year and they were fine. Unsure of what happened next but they then started panicking, worrying I was going to evict them etc etc. Despite both the agency and myself reassuring them that A. I would never do that and B. I couldn’t legally even if I wanted to, they then started looking for somewhere else and said they wanted to leave. They asked if i would agree to this as they would actually be in breach of their contract by doing so but i agreed. They gave their notice and all good.

obviously they paid up front so upon vacating the property I will owe them 3 months rent which I’ll return to them. I’ve had the amount calculated by the accounts team in the agency who manages this for me and it’s all in order. However the agency are saying the couple want this money back now and want me to pay it this week despite them now due to leave for another 6 weeks.

I’m apprehensive about doing this as there’s no guarantee they’ll actually vacate when they say they will. Neither parties have signed anything stating the new arrangement either. I am being unreasonable by suggesting it’ll be paid back to them the day they leave?

OP posts:

Desperatelywantinganother · 06/04/2023 13:44

They probably need it for a deposit on their next place.

Can you suggest half now, half when they vacate?

Pringleface · 06/04/2023 13:45

No. I think it would be madness to give them the money before they leave because as you already know, they have no incentive to actually vacate.

Get your hard hat on though ready for the LL haters to batter you.

Likethestarsabove547 · 06/04/2023 13:59

Half now and half when they vacate, I imagine they need it for next property. Get it drawn up and signed etc. You've been more than reasonable already

Hoppinggreen · 06/04/2023 14:01

Nope, I wouldn’t give it to them until they actually leave and final inspections etc are done

Original poster

Newyearnewus · 06/04/2023 14:01

Thing is they might want it for the next property but with all due respect that’s not my issue. They chose to give notice early. If they’d just followed the contract they’d have been working on the original timeframes and been able to budget accordingly. If they were moving from one rental to another they’d need to find the money to fund this another way so I feel like I’ve been reasonable here.

OP posts:

Wildflowers2020 · 06/04/2023 14:02

I don’t think you are being unreasonable. I think you were being very considerate in giving so much notice of your intentions ahead of time. I’d wait until they vacate the property if I was you.

SweetSakura · 06/04/2023 14:07

I'm so used to telling landlords they are being unreasonable that I sometimes feel like a stuck record. But I think you have already been very reasonable here and I don't think you should refund them early.

Finalstar · 06/04/2023 14:19

No.

They can't have it both ways - expect to be allowed to vacate a contract early with no penalty but also get their money refunded before they leave!!

Remind them that the contract was for a year and you gave them a discount for paying upfront. Point out that you would legally be within your rights to refuse to refund them at all as they are the ones who are choosing to leave early, and although you are happy to refund them their last three months of unused rent, this will only happen once the property has been vacated and keys returned.

Finalstar · 06/04/2023 14:20

They may well need it for their next property, but they are the ones that are choosing to vacate early - they could stay for the next three months and use that period to save up.

WallaceinAnderland · 06/04/2023 14:27

No, stick the the rules. They get their refund when the property is vacant and has been inspected. Keep it professional.

Crikeyalmighty · 06/04/2023 14:32

@Newyearnewus we did this on our last house- it was our choice to do so and not only that I had to pay till they got a new tenant in- so paid on 2 houses for 2 months. I understand their reasoning but think you have been more than fair- we certainly didn't get any money back before we left

CwmYoy · 06/04/2023 14:34

No. Not until they've gone.

Desperatelywantinganother · 06/04/2023 18:21

No it’s not your problem. But it could become your problem if they can’t get the money together for a deposit and lose the property they are going too move into and then don’t move out of your property on the schedule you’d like.
Maybe call your estate agent for their advice on how to handle this?

MaireadMcSweeney · 06/04/2023 18:23

Obviously you don't pay it back until they have vacated. Until they have vacated you don't owe them the money!

RJ57 · 06/04/2023 18:27

As someone who did what you're considering, I wouldn't advise it.

In my case the tenants didn't pay anything further and left the place in a state.

You owe them nothing and this is a business. Dont do what I did and try too hard to help as sadly you open yourself up to being screwed over.

Eann · 06/04/2023 18:27

Desperatelywantinganother · 06/04/2023 18:21

This is my thought too.

Maybe ask the property manager at the agency to suggest that they get a temporary loan from family (or bank!) to cover the deposit on their new place and see what they say

justasking111 · 28/05/2023 00:11

You should never have taken a year in advance and then decided to sell. I say this as a licensed landlord. You certainly can't withold any for repairs. You can argue keeping back some of the deposit for damage. You will need to keep receipts of any out of pocket expenses. Agents will tell you one thing but you are responsible legally not them.

Haywirecity · 28/05/2023 02:11

I think you were kind letting them break the lease. I wouldn't give them a penny til they're gone.

ImustLearn2Cook · 28/05/2023 02:34

If you gave them the balance now, I don’t think you would end up out of pocket if they didn’t leave on the vacating date. They would have to start paying you rent until they vacate. If they don’t pay the rent you evict them and keep their bond.

So, I really don’t see any real issue with reimbursing them the money they paid in advance to you.

VDisappointing · 28/05/2023 02:35

It’s not your problem but I must admit moving is expensive and I would be disappointed to be told part way through a 12 month lease that it would not be renewed

ImustLearn2Cook · 28/05/2023 02:39

I’m not from the UK so I could be wrong. Your tenants might have reasonable grounds to break the lease early if, because you are selling it, potential buyers will be entering the property to view it.

SusanMaria · 28/05/2023 03:07

You don't even owe them 3mths money. You gave a discount because they paid upfront for a year. They've now changed that. So in my eyes, if you give them anything at all it should be what's left after taking 9mths rent at the full rate. And no they don't get it now in advance, they're totally taking the piss

ReleasetheCrackHen · 28/05/2023 03:16

I’m sorry but I think YABU. This money isn’t a damage deposit that they are asking for, this money is future rent that you have both agreed they will not be in the property so will not owe. You are unfairly penalising them for having paid you upfront for a year in advance. This situation arose because you are selling the cottage out from under them as well.

You have no legal right to hold onto three months of future rent when they have signed legal contractual documents saying they won’t be in the cottage during those months and you have countersigned agreeing to. (Which per your OP have been duly signed and executed).

You only have the legal right to hold on to the damage deposit money which will cover any breach of contract.

Im shocked your estate agents are not advising you appropriately.

suburbophobe · 28/05/2023 03:21

A reason never to become a landlord.

Not on you OP, you sound lovely.

Just all too much hassle, I was left with a place from an inheritence. Didn't live there, or anywhere near, had to pay tax on it, became a nightmare with the tenants (me being liable for the new boiler, etc.). Having palpitations at maybe the roof needing renewing.

I sold at a loss just to be rid of it. As a solo mum, best thing I ever did.

SusanMaria · 28/05/2023 03:22

ImustLearn2Cook · 28/05/2023 02:34

So, I really don’t see any real issue with reimbursing them the money they paid in advance to you.

Of course she'd be out of pocket. If they refused to go it'd take months to evict then and if they didn't pay any rent during that time, as many don't, there's very little the OP can realistically do about it. Sure she can go to court but you can't get money out of people who haven't got any.

They've taken the piss thrice now, once expecting a discount for paying up front (people either do that because they're desperate to secure the property or because they know they won't pass the financial checks, ie you're doing them a favour, so no discount!). Once wanting money back because they've decided to leave early and a third time wanting the money back before they're actually leaving. I wouldn't be trusting them not to take the piss again.

As for the poster disappointed at a lease not being renewed. Eh? There's never the guarantee of renewal or of the rent not rising. If you rent for a fixed period, anything else beyond that is a bonus. It's the nature of renting, it's precarious and yes it sucks, but it's life. If you're on a rolling monthly contract it's worse, you could be given 2mths notice at any time, starting from the day your next rent payment is due. At least with fixed term you know you've got 6mths or a year where you can definitely stay.

OP the lesson you need to learn from all this is to be businesslike. Renting is a business, even if you've only got the one property. Doing people favours has got you nothing but hassle.

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