The three or four bed with tenants coming and going is just too risky.
Yes and so many different rules that a landlord can trip on.
For example, RTB website says: “Assignment is when a tenant finds someone to replace them in the tenancy and transfers their entire tenancy to another person”. That’s easy to understand if it’s an assignment of an entire tenancy eg to break a fixed term lease where all tenants move out. Partial assignments between revolving housemates is not, as the RTB insist there’s only one distinct tenancy per dwelling so if just one joint-tenant wants to leave, how can they assign the entire tenancy?
TBH, the RTB rules about multiple tenants is a head wreck. There’s replacements, sub-lets, assignments, succession, rent-a-room, all need prior landlord consent and then there’s temporary guests, extra occupants, tenants-in-waiting that don’t need consent. Informing the landlord in writing of other residents (non-tenants) is a legal requirement but it seems to be ignored by many house-mates.
There’s overlaps too eg. if A moves out and Mr G moves in with no prior LL consent, Mr G could fit the criteria for a tenant-in-waiting, or an illegal sub-letter, or an unauthorised assignee. He pays tenants directly, has no relationship with the landlord, is assigned a specific part of the dwelling (Mr G doesn’t choose which bedroom), and any problems or damage are between him and the tenant. But which tenant - is it A who left (illegally sub-let/ assigned) or the remaining joint-tenants.
Even though a landlord has the right to know who is living in his property, he can’t carry out suitability checks if Mr G hasn’t supplied him with ID, a PPS number, references etc. and signed no legal documentation. Although tenants are legally obliged to inform the landlord in writing, there’s no specified time limit so Mr G or anyone else could be ghost-living in the property for months. Even regular inspections do not disclose an additional or exchanged occupant ie. personal effects / clothing in a particular bedroom could belong to A who is still the registered tenant.
Extra residents can cause issues with the landlords insurance and short-term lets like Airbnb can breach planning laws. Meanwhile the departed A is still on the lease and the rtb register, plus they remain liable for rent, property damage, ASB etc. It’s just wild . No surprise the institutional landlords are challenging it.