Do your tenants want to move out early or earlier than the tenancy comes to an end? Here’s what to do!
I’ve experienced this a lot over the years of property management. Tenants always want to move around even though their contract isn’t coming to an end or there isn’t a break clause coming up.
The reason is because number one they don’t quite understand tenancy agreements and number two sometimes they just need to be flexible.
I put out this information on the Facebook group and I got a lot of disapproval about what I am going to recommend. But, hear me out! If a tenant comes to you and says, “ Hey I’m really sorry but I need to move out early”. Here is what I recommend you do.
Go back to them and say, “The only way you are going to move out early is if I find a replacement tenant, or you find a replacement tenant because this is going to be at your cost”. It is always going to be at a tenant’s cost because they are trying to break the contract early.
You can do one of two things in this scenario:
1) You can go back to your letting agent or for me I use Upad and get them to re-list the property. Then, when they tell you how much money that is going to cost you go say to the tenant, “here’s how much it is going to cost and you are going to need to pay for it”. If they don’t pay for it you need to check if there is enough in the deposit that you can take the needed amount out of it.
2) You say to the tenant here is the letting agent’s details or, in my case, Upad’s details you need to get these people to re-list the property and you are going to need to pay for it.
So, no matter what the tenant is going to pay for the change of tenant because they are moving out early and they want to break their lease. As well as that, they are going through your preferred letting agent or, in my case, Upad who are going to do the references of the new tenant up to the standard that I require.
Now, here’s the thing. With the new tenant that is coming in, you do not need to approve every one of them. They’ve obviously got to live up to the requirements that you need in order for them to go on that tenancy.
You are the landlord – you get to say yes or no.
Here is another massive tip
If a tenant comes to you and says they want to move out early, and they say I’m going to hand the keys back, tell them that you do not accept that. You accepting the keys means that you accept a tenancy in place. You do not want to do that! You always need to be strict with the tenants and say, “ I understand your position, but here is what you are going to do to help me”.
You might also want to do an inspection at this point in time to make sure that the premises is fit for reletting. And if it’s not you need to tell the tenants to clean it up and do any remedial works that are going to get it back into the condition that you let it to them in.
Now, of course, you need to spell this all out in a clearly worded email to your tenant before they can move out early.
So again, they need to pay you for the cost of you finding that new tenant, whether they are going to be in charge of the process via your letting agent or whether you are going to be in charge of that process via your letting agent. But they need to help you out because it is them who wants to end the contract early, not you!
So, I want to hear from you!
What do you think of that advice? Is it simpler than you thought it was ever going to be? Or, do you completely disagree?
Let me know in the comment section below!
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