Pre-paid rent but tenant is leaving early

[Dr_Gonzo]

I let a property to a tenant who paid 6 months rent up front. They renewed a couple of months ago and again paid 6 months rent up front. I've just had a message on my answer phone saying that they want to leave the property on the 15th January 2009. It's a residential property but it's actually let to a company so my understanding is that it doesn't fall under the AST rules. Does anyone know what the situation is regading the rent that they've already paid? Am I forced to give it back pro-rata to the day they leave, or do they have to still pay for the full period?

Cheers,

The Doctor

Edited by Dr_Gonzo on Thursday 11th December 14:53

[dibbers006]

I would have thought you round up the remaining whole months and refund them that?

[TWSTEEL]

I'd assume you wait till you've re-let it first before you even consider a refund. You might be stuck for a month or so with no rental income.

[Davel]

Presumably the company has committed to a short-hold type agreement and for a fixed period of say six-months.

Tell them that you'll start advertising and let them off any period for which the property is re-occupied.

They should, I think, be liable for either the full committed period or for any un-let perod up until the end of the tenancy agreement, if you're happy to do so.

Edited by Davel on Thursday 11th December 15:56

[JJCW]

Surely this would be all dependant upon the signed contract? I'd have thought that is would be stipulated

[Road Pest]

Davel said:

Presumably the company has committed to s short-hold type agreement and for a fixed period of say six-months.

Tell them that you'll start advertising and let them off any period for which the property is re-occupied.

They should, I think, be liable for either the full committed period or for any un-let perod up until the end of the tenancy agreement, if you're happy to do so.

From my short experience of letting, if they signed for 6 months they are liable for 6 months. Last person that rented our place paid up till we found a replacement tenant. So in this instance I would have thought it would be the same, don't return any money till there is a new tenant. Also if you are paying agent fees for the letting make sure that you are discounted for the same period.