Adjudication Case Studies

Case Study - Early termination of tenancy

Case details

The landlord submitted that the tenant was liable for rent owed for an eight month period after the tenant had
moved out, and when the property was left unoccupied. The tenant had decided to leave the property and early
termination of the contract was agreed to by the landlord on the basis that replacement tenants were found.
The flat was then advertised and subsequently new tenants were found. The landlord then took the decision to
sell the property rather than to re-let it, and new tenants did not move in. The property was left empty until its
eventual sale and the landlord deducted the full amount of £900 from the deposit for rent owed during the five
month void period.

Evidence provided

A copy of a Ledger Report, which indicates rent payment schedules, and the tenancy agreement was provided by the landlord.
The tenant provided a copy of the letting agent’s branch summary report for the tenancy.

Adjudicator’s findings

The branch summary report, which was submitted by the tenant as evidence, stated that the landlord had agreed
to the early release from the tenancy agreement on the basis that replacement tenants were found. The report
also indicated that the tenant gave two month’s notice and waited for confirmation from the letting agent that
replacement tenants had been found before moving out.

Having sought the prior agreement and consent from the landlord in order to vacate the property before
the end of the tenancy, the adjudicator found that it was not reasonable to penalise the tenant for the early
termination of the tenancy which had already been agreed by both the landlord and tenant.
There was no clause in the tenancy agreement pertaining to a break or early termination of contract however
as the landlord agreed to the early termination, the adjucator was satisfied that the parties had mutually
agreed to alter the terms of the tenancy agreement.

Furthermore, the ledger report provided by the landlord as evidence demonstrated that the tenant
maintained rent payments beyond the date upon which early termination was agreed. The tenant also
attempted to mitigate financial loss for the landlord by finding new tenant

Key points from the case:

• The case highlights the need to have clear clauses about breaks and early termination in the tenancy
  agreement at the beginning of the tenancy or subsequent evidence in writing that the terms of the
  agreement had been varied and mutually agreed.

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