Tenant has changed his mind at the last minute, and will not proceed....what now?

[Earlybird]

I have a dilemma and need advice please.

We are currently living out of the country, and have looked to rent our flat. On estate agent's advice, we did a complete renovation / refurb (new kitchen, new carpets, new boiler, updated bathrooms, etc). After months on the market and two price drops, we finally received an offer (we were told Brexit uncertainty has caused the market to slow dramatically).

The tenant was due to take possession at midnight tonight, but i've just been informed that he is pulling out due to a family health emergency in another country. He had not signed the lease, so I am told that all he will forfeit is one week's rent.

While I am sorry he has had a crisis, I am extremely upset at this turn of events. The flat has been off the market / sitting empty for 6 weeks since the lease was agreed. I am astonished that he had not signed the lease, though the estate agent advises that people often don't sign until the day before.

The estate agent is extremely sorry, but says the only thing to be done is for the flat to go back on the market.

What, if anything, would you advise? I am upset and frustrated.

I really don't know what it is with letting agents but the ones I've used just seem so "relaxed" about everything. There was no appreciation of how "water is bursting out of the pipe and hitting the ceiling" is an actual emergency situation and I need a plumber now! Not on Monday morning. Having said that, I very much got the impression that particular LL had just decided to forget about my house altogether. According to the agent he had been in Africa for years and uncontactable most of that time.

This tenant is known to the EA. He has rented from them before, and in fact, was due to move out of one of their properties (which had been sold) into my flat. He travels a great deal, evidently, so perhaps they relied too much on an existing relationship and thus weren't as strict as they might have been.

BTW, I don't have any reason to doubt his story, and on a human level, I am sorry about it. But the fact remains, I relied on him/the EA and am now starting over with nothing to show for my time/patience.

It may simply be 'one of those things' but, I certainly want to protect myself from it happening again. Your suggestions have given me an idea of what i can stipulate, and I will do just that in future.

Landlords insurance does not cover void periods.

Op - yes, you would hope that is the case but in my experience the industry attracts a lot of lazy hair flickers , and it is worse in London where the money is easy. That said - no tenant means no money for them too! I would seriously consider changing.

As long as the flat is well marketed and at the right price you'll let it again quickly.

Just put it back on and within the next couple of weeks you'll get a new tenant.

I don't think it is normal to delay singing the lease until move in day (Z1 London)

I've always signed a lease in advance as a tenant - although I've never rented in London. Agent meets you at the property on the day the lease starts to hand over keys, do inventory and sort out paperwork.

I've seen your previous threads about struggling to rent this flat. I think the market in London is tricky at the moment. I let flats in Z2 and have never had leases signed at the last minute.

I think agents are pretty rubbish and getting worse. I got stuck recently renting one out and for the first time had a void. I ended up letting it myself via Openrent for £49. Saved myself a good chunk of money and had lots of people interested. No fees for tenants bar a £20 reference check. I'm not going back to agents and will stick to doing it myself from now on even though I don't live in London.

Not sure where you are but I would strongly recommend that you come over for a few days and rent it out yourself. Or maybe a friend or family member can do the viewings for you. The negotiation and paperwork is all done via email and text nowadays.

I have rented a lot, and have never signed the TA until the day I was given the keys. Not because I was cautious or anything like that, it was just the process. And that's in many different counties. I've never known the TA to be signed earlier than that.

Ive never signed until I've had the keys in my hand, but always had to pay a holding deposit which has been as much as £500. No idea who that'd go to if I decided to pull out.

Try reading some online reviews of this agent from tenants. Letting agents are often utterly useless and we've caught previous LAs outright lying about what we've said to our LL. I just rent privately now because they are too much hassle.