Over the past few weeks we have posted a lot of advice for the many student tenants who have just begun renting for the first time.
Something common in student houseshares, but can be more of a worry for the landlord, is swapping tenants mid way through the tenancy. This article explains how landlords can handle this, whilst still meeting their legal obligations and protecting against disputes with the outgoing or incoming tenant further down the line.
Strictly speaking, the best way is to bring the existing tenancy to an end, check the tenants out and distribute the deposit. However we accept that this is usually not practical, and here is the advice we normally give as given in our Guidance Document, ‘Change of Sharers mid-Tenancy’.
When the outgoing tenant has found a replacement, the deposit holder should collect the appropriate share of the deposit from the incoming tenant.
We advise creating a new tenancy agreement as it better protects against all eventualities. You can just use an addendum but make sure that new prescribed information is issued and that the incoming tenant agrees in writing to be bound by the original inventory. If the incoming tenant refuses to do this, you may wish to consider checking out all tenants to avoid disputes later on.
Well, if you choose to, you can. But be aware that should the incoming tenant not reimburse the outgoing tenant, and you have created a replacement tenancy agreement, then the outgoing tenant may be able to raise a dispute – which could leave the deposit holder with a shortfall on the deposit held.