Cancelling tenancy agreement before it starts

[HugeDeal]

After some advice please from experienced landlords.

So I found new tenants for my empty flat a week ago via estate agents. They asked to take up the tenancy in 3 weeks. I agreed over the telephone but didn’t sign any paperwork with the estate agent. The following day the estate agents informed me they couldn’t get in touch with the tenants to secure a holding fee so we agreed we would put the house back on the market. I immediately contacted another agent and the house got shown to a set of interested tenants who made an offer. They could move in straight away. My property has been empty 2 months now. Before I had any time to think about the offer, the first agent told me that the first tenants now got back in touch and the holding fee has cleared. By then, I had negotiated better terms with the second estate agent and decided I would accept the second tenants’ offer as they could move in immediately and as I also had started to doubt the first tenants’ reliability, especially as the tenancy was not meant to start until 3 weeks from now. I hate messing people about but I got scared I might be the one who misses out if something else goes wrong. What do I now say to the first estate agents? They still don’t know I accepted the second tenants’ offer. Should I be cautious of anything in terms of legalities?

If nothing was signed then I think you're okay. But morally.. did you give them enough time?

Did you sign terms of business with the first agent and if so what do they say?

Did you sign a contract with the first agent? I think mine charges around £200 in the event that the landlord doesn't go through with securing a tenancy after all the advertising etc has been done. So I'd expect you might have to pay the first agency something? As for the tenancy they've arranged - did you tell them you were going to go with a second agent?

No I hadn’t signed anything at all with first agent. They still haven’t sent me anything to sign a week after finding the tenants. The first tenants told us that their current tenancy ends at the end of March so I should think they have enough time to find something else.

I do feel bad for first tenants but then part of me thinks they should have taken the house up straight away and not negotiating a much later date or at least responded at the agent’s phone calls when they were calling them to ask about paying the holding fee.

3 weeks isn't really very long if they need to give notice elsewhere? Presumably, they didn't want to end up paying 2x rent.

Also, you put it back on the market after the agent could contact them within a day? Maybe they were at work / particularly busy etc. They obviously returned the call reasonably quickly since the "holding deposit" is cleared, and it's been less than a week.

Probably, legally, you can do this and enjoy your higher rent better terms.

Bloody glad I don't rent anymore, though.