Tenant giving notice
Hi there, I am unsure if I have posted in the correct section - please accept my apologies if this is in the wrong place.
So the situation I would like advice with is as follows:
I have 2 amazing tenants (TENANTS A AND W) who are friends and on the same AST. Neither can afford the rent on their own and one has decided to leave (W). The other tenant (A) likes the flat and wishes to stay.
She has offered to find another housemate - this is acceptable to me as long as they meet the referencing and affordability criteria for my rent guarantee insurance.
W has suggested giving 1 months' notice as per the AST.
My view is that I would like "A" to stay (ideally both to be honest) and am happy to offer a payment break as per government guidance. Even a reduction in the short term. And in the meantime hope that they find a new housemate.
My questions are as follows:
- If they give 1 months'notice, they both will need to leave - is this correct? Even if Tenant A wants to stay, they have effectively given me notice to leave and then I will need to consider eviction (I DO NOT intend to evict them at all) but throughout this time they will be accruing rent liabilities at the full amount.
- If tenant W moves out, without serving notice, then Tenant A (strictly speaking both) can stay and they would be liable for rent at the full amount. In this situation, if they mention hardship, then I can offer them a repayment break (they continue to accrue arrears at the full amount) and at the same time I can ask my bank for a repayment break?
In this scenario, there is no official reduction in rent and the onus is on tenant A to find a housemate asap?
Can I offer a temporary rent reduction to something that is affordable where the tenant doesn't accrue any arrears? How do I do this "legally" for a short period of time?
- If tenant W wants to move out and absolve herself of liability (understandable as she wants to move out for other reasons), how do I go about making the rent affordable to tenant A in the short term, while allowing for a future increase in rent when she gets a housemate? "A" alone will only meet the affordability criteria for approx 40-45% of the full rent and this will not cover my mortgage once any repayment break is over. Additionally I'm not sure my mortgage company would appreciate me signing a document where the rent doesn't cover the mortgage.
I would ideally like at least Tenant A to stay - I don't to be leaving anyone homeless (at any point in time, regardless of the COVID situation) whether by eventual eviction or by making them feel they need to leave. I just need to find a way for all of us to be happy with an agreement
What would you advise/suggest?
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