Tenant leaving. Sublet or new lease

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Meath Lady

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Advice sought.
3 tenants sharing a property.
Lease commenced July 2021 fully registered with Rtb and tax compliant.
One tenant now wishes to leave shortly. They have found a replacement tenant.

Tenant leaving doesn't want to consider a subletting situation . Not entirely sure I do either.
He wants us to issue a complete new lease.
In the current climate can anyone advise the options, pros and cons in this situation.
Is it feasibility and advisable to commence a new lease now for all 3 with 2 existing tenants still on lease until July 2023.
Does this new lease then give tenants rights to tenancy of indefinite duration.

All thoughts and advice welcome.
Starting to think it might be time to sell.
 
I'm not sure it matters what the departing tenant wants.

I think I'd decline signing any new lease & let the remaining two be responsible for the rent.
 
Meath Lady said:
Tenant leaving doesn't want to consider a subletting situation . Not entirely sure I do either.
He wants us to issue a complete new lease.
Click to expand...
You don't need a new lease. Departing tenant "assigns" the lease to a new tenant with your permission.

Same rules for rent increases and termination periods apply.
 
NoRegretsCoyote said:
You don't need a new lease. Departing tenant "assigns" the lease to a new tenant with your permission.

Same rules for rent increases and termination periods apply.
Click to expand...
In this instance does new tenant give the departing tenant his portion of the deposit, and I guess I just notify RTB of new tenants name.
Thank you.
 
Meath Lady said:
In this instance does new tenant give the departing tenant his portion of the deposit,
Click to expand...
That's totally up to them and not your concern.

The deposit is a liability to you to departing tenants (joint and several) whenever that takes place in future.
 
Meath Lady said:
Advice sought.
3 tenants sharing a property.
Lease commenced July 2021 fully registered with Rtb and tax compliant.
One tenant now wishes to leave shortly. They have found a replacement tenant.

Tenant leaving doesn't want to consider a subletting situation . Not entirely sure I do either.
He wants us to issue a complete new lease.
In the current climate can anyone advise the options, pros and cons in this situation.
Is it feasibility and advisable to commence a new lease now for all 3 with 2 existing tenants still on lease until July 2023.
Does this new lease then give tenants rights to tenancy of indefinite duration.

All thoughts and advice welcome.
Starting to think it might be time to sell.
Click to expand...

Another option is to leave the remaining two original tenants on the lease for the rest of the term and they are responsible for the full rent. They can always take in a licencee if they have your permission. If the new person works out they can stay a licensee or request to become a tenant and can be added to the tenancy agreement at that stage. It's like a trial period I suppose. Not everyone wants to be tied into a lease with long notice periods, a licensee situation is more flexible for some.

I think when further part 4's reach the end of the current six year period, they become indefinite tenancies but not 100% sure on that.
 
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