Ending fixed term tenancy early

[Lanthanide]

Just 1 month ago I signed a 12 month lease with a group of 5 university students.

I have now suddenly found a private buyer that may be interested in purchasing my house for use as a business premises.

I understand that fixed term leases can only be broken on mutual agreement of both parties (financial hardship doesn't apply in this case). I am presuming in this case that to get the tenants to agree I'd have to pay them a cash settlement to move out. I was thinking maybe 6 weeks current rent + refund of the letting fee they paid would be reasonable.

Anyone else been in this situation? Tips and suggestions very welcome.

[kyotolaw]

If I was a broke student, I'd probably jump at that. Just hope there aren't any future lawyers amongst your tenants...

[Lanthanide]

Just hope there aren't any future lawyers amongst your tenants...

Why? Care to elaborate?

[kyotolaw]

Just that if they figure out they can stick you for more, they might. Nothing forces them to leave. Its really about making sure that the carrot is big enough to override the inconvenience factor.

[sheree99]

6weeks rent + letting fee may sound a lot but if they are likely to have trouble finding another flat they may not want to move. Also there are moving costs, any cost with electricity/ ph/net reconnection fees and just the hassle and stress especially as you want them to move over the height of the holiday season. They may have holiday plans, working long hours to fund next yrs class fees or taking summer school so could be very busy. I agree with Kyotolaw, you need to make sure the carrot is of sufficient size to tempt them.

I also find it interesting that you say "I have now suddenly found a private buyer that may be interested in purchasing my house for use as a business premises"

Which sounds like you were looking around for a buyer or open to offers but still entered into a 12mth contract with these students .
Now you have someone interested, but not a confirmed contract, be careful that your possible purchasers don't take making a contract with someone as lightly as you do or you may find that you have paid out your tenants and the buyers have vanished.


[email protected]

[Eugene]

No Sheree99, Lathanide knows there is a contract, and is asking what a suitable incentive might be. He knows the tenants have to agree.
I was in a similar situation and offered $1000 the day after signing and it was accepted.
Amount Lathanide is suggesting, 6 weeks current rent + refund of the letting fee, sounds reasonable.

[sheree99]

No Sheree99, Lathanide knows there is a contract, and is asking what a suitable incentive might be. He knows the tenants have to agree.
I was in a similar situation and offered $1000 the day after signing and it was accepted.
Amount Lathanide is suggesting, 6 weeks current rent + refund of the letting fee, sounds reasonable.

Oh Eugene, I can read what he said but I'm questioning his understanding of a contract.. as a binding agreement between parties.

We criticise tenants who sign a fixed term tenancy agreement then, after a short while, decide they want to get out of it and expect to be able to get out of it without any hassle. Here we have an owner who entered into a fixed term agreement then changed his mind after only 1mth because he basically got a better offer, and expects to be able to get out of it by offering the tenants some money. Yes he does understand the tenants have to agree and is basically asking what we think the the lowest price to buy them off is.

The tenants may happily roll over, take the money and run, that is their choice.

What I'm commenting on is peoples general commitment to a Tenancy Agreement. Somehow people don't think of them as a legally binding contract
but more as some sort of wishy agreement that one doesn't have any obligation to uphold.
I certainly find when I call the Tenancy Agreement a 'contract' I get way fewer problems ( from Landlords and Tenants) than when I just use the term 'agreement'.