This is a question to the blog clinic from Catriona who is a landlord in England.

My tenants have served two months’ notice, as required under our rental agreement, that they will be leaving on 15 March. However, they are buying a flat and as yet there is no agreed completion date.

I plan to start marketing the flat this week, with March 17 as the move-in date. What is my legal position if I sign a contract with some new tenants for them to move in on 17 March but then it turns out that the existing tenants haven’t actually completed by then?

Answer

You need to be REALLY careful about this. Landlords can only get vacant possession of their property in two circumstances:

• The existing tenants moving out, or
• Using a court bailiff or High Court Enforcement Officer acting under the authority of a court order for possession

So if tenants fail to vacate, in this case because they have not completed on their house purchase, you will not be in a position to let new tenants in.

If you have signed a tenancy agreement with them, you will be in breach of contract.  They may be able to claim compensation through the courts.

You can guard against this by making the new tenancy conditional upon the existing occupiers moving out, but for this to be enforceable, you would need to be able to prove that this was clearly drawn to their attention, and the clause would have to be ‘given prominence’ in the tenancy agreement document.

However, my advice to landlords is that you should not sign up new tenants until you have vacant possession and have been able to enter and view the property first.

Why landlords need to leave time between tenants

For example, the property may need serious repair works or there may be other things that will need to be done.  For example, energy efficiency upgrade works.  Most works are best done while the property is empty. The property may also be refurbishment or decorating works before it can be marketed.

You really need at least a couple of weeks between tenancies.

Bear in mind that if the previous tenants have left the property in a dangerous condition (for example, if they have removed unauthorised additional wall lighting, leaving live wires in the wall, or if there are bed bugs) you will be liable to the new tenants for this.

Even though the actual problem may be the fault of the outgoing tenants.

It is unwise to move new tenants in just two days after the previous tenants have vacated, as you will not have enough time to deal with things. You may be laying yourself open to complaints and compensation claims.

Particularly as the new Renters Rights Bill will be increasing the standards for rented homes and penalties for non compliance.  And setting up a new Redress Scheme which will make it easier for tenants to complain.

There is a shortage of decent rented accommodation at the moment, so it should not take too long, assuming your property is in good condition and in a decent location, to find new tenants, after they have vacated and you have carried out full checks on the property.

The post Can we sign a new tenancy agreement with new tenants before the existing tenants have moved out? appeared first on The Landlord Law Blog.

Welcome to another Landlord Law Newsround where this week has seen the return of the Renters Rights Bill back to parliament in the House of Lords, where it passed its second reading.

I reported on the debate here.

Let us see what else has been in the news this week.

Severe strain to come on the courts say lawyers

Whilst The Law Society welcomes the Renters Rights Bill it has raised concern that the courts remain underfunded and will make the rental reform harder to achieve when more legal cases will be heard as the government proposes to increase housing legal aid fees and give tenants the legal right to challenge evictions and rent reviews.

Richard Atkinson said

While we applaud the government for its great strides to bolster tenant rights, the Bill will not be effective without further investment in the justice system. We urge the government to provide greater funding and more clarity to the enforcement provisions so that justice is accessible to renters and landlords alike.

The court system is already breaking, let’s hope this government listens.

EPC Tax incentives for landlords

The Conservative Environment Network has called on the government to consider energy efficient tax breaks for landlords to enable properties to be upgraded, which would not only incentivise landlords but would also help tenants in reducing their energy bills and lower the UK’s reliance on foreign fuel imports.

George Freeman, a former science minister said

We need to help landlords who are looking to invest and improve their properties. By cutting taxes on landlords, we will help them improve their properties and boost their value. Renters would also immediately benefit, staying warmer for less and prepared for future winters.

He also stated that the UK has the worst-insulated homes in Europe and that this does need to be addressed.

Another MP, Rebecca Smith said that the government is ‘burdening landlords with added red tape and without any financial support’. The current mandate from the government is for all rental properties to be an EPC ‘C’ by 2030.

Rogue landlord hit with high fine

HMO Landlord Hajra Mehmood has been ordered to pay more than £14,000 in fines by Reading Magistrates’ Court for breaching several HMO regulations such as no working fire alarm system, insufficient means of escape in the event of a fire, lack of fire doors and tenants only having use of an badly kitted out outdoor bathroom in the garden.

Unsurprisingly, the landlord ignored the councils many requests to provide relevant information, the court found her guilty of eight offences in HMO management regulations.

Councillor Ishrat Shah said

Let this be a warning to others to check they are meeting all their obligations, and if not, take immediate action to avoid appearing in court themselves and facing huge financial penalties.

Snippets

Council will pay deposit and one month’s rent for selected tenants
Five year extension for city’s licensing regime
Fine issued in May 2023 upheld by First Tier Tribunal
Landlords unaware of upcoming EPC changes

See also our Quick News Updates on Landlord Law

Newsround will be back again next week

The post Landlord Law Newsround #374 appeared first on The Landlord Law Blog.