While most landlords and tenants have a great relationship, sometimes things can go wrong.
If your tenant has left your property but hasn’t paid their rent, you might wonder what you can and can’t do from a legal perspective.
Here’s a guide from our commercial property law team to ensure you get what you are owed, as well as answers to some of the other questions clients frequently ask us about liability for rent.
Note: this advice applies to landlords and tenants in England and Wales.
What happens if my tenant wants to leave before the end of their contract?
If your tenant wants to leave before the end of their contract, it is up to you whether you accept this.
The tenant might have a good reason for ending their tenancy, for example, if they have to look after a family member or a relationship has broken down. You might agree to terminate the contract early as a gesture of goodwill.
If you’re not in a position to agree to end the contract early and the tenant is still in contract, they will have to pay rent until their tenancy ends.
You’re within your rights as a landlord to include a clause in your contract to say a tenant will forfeit their deposit if they end their contract early. However, this must be included in the contract, and you need to be able to prove that the tenant agreed to it.
If you begin letting the property to other tenants, the former tenant no longer has to pay further rent, even if they are still technically in contract. You will however be able to seek recovery of any arrears up until the new tenancy commences.
Can a landlord keep a deposit if a tenant leaves early?
Yes. If a tenant has outstanding rent when they leave a property, you can deduct this from their security deposit.
However, what happens when there are additional deductions to consider, like cleaning costs and property damage? If your tenant has left without cleaning and the security deposit does not cover this or the cost of the unpaid rent, you may choose to take your tenant to court for the rest of the money that they owe.
