Landlords using 'constructive evictions' to reset rents to market

That doesn’t conflict with any RTA rules to allow a replacement, it just makes it transparent when the 6 year joint-tenancy to occupy the property will end
There is no 6 year tenancies though. It's a unlimited tenancy with a possibility to sell after 6 years.
 
So I don't understand how that works.
I think that is just the new person confirming that they are joining the existing tenancy which starts a new cycle at year 6.

That is good advice - A and B start a tenancy on 1 June 2026, A leaves after 5 years and X moves in. X may think that he has a year 6 TMD and will be very surprised to get an eviction notice or a large rent increase a year later. He could take an RTB case for compensation on the basis he wasn't told this. Signing a formal document avoids this risk for the landlord.

Whole thing is a mess though and I think that lots of landlords will get themselves in very hot water with house shares and tenant replacements.
 
So I don't understand how that works.
If one house-mate leaves, the RTB register must be updated. If the landlord agrees to a replacement tenant, the RTB register must be updated. The RTB registered TMD start date doesn’t change, only the individuals in occupation with the landlords authorisation.

If the landlord and original house-mates signed a contract (lease agreement) and the parties have changed, is it not a good idea to update the contract so every signatory to the contract knows the position. For example, if a large landlord sold a block of rented apartments, I’d imagine the new owners would want that documented with their individual tenants. Why not document it when there’s a change in the tenants.
 
If the landlord and original house-mates signed a contract (lease agreement) and the parties have changed, is it not a good idea to update the contract so every signatory to the contract knows the position. For example, if a large landlord sold a block of rented apartments, I’d imagine the new owners would want that documented with their individual tenants. Why not document it when there’s a change in the tenants.
I would think it is very important to carefully document all changes to the tenants. The days of casual and undocumented replacements are now long gone. In fact, based on the original issue in this thread, you should do your best to completely avoid replacement tenants for a number of reasons, the least important of which is the ability to reset the rent.
 
The remaining tenant then hands the second set of keys to anyone of their choice without reference to the landlord except the RTA requirement to notify him in writing, and that person can then request to join the tenancy after six months occupation and the landlord can’t reasonably refuse. That’s the RTA tenancy rules covered.
If the lease doesn't allow sub-letting (or licensees), it seems that that is one area where the lease is actually binding.

The person living in the property would just be a licensee, not a tenant. If licensees were not allowed by the lease, then I think it wouldn't be unreasonable by the landlord to refuse to add the licensee to the tenancy.

They don't get tenancy rights unless the landlord adds them to the tenancy.
 
The person living in the property would just be a licensee, not a tenant. If licensees were not allowed by the lease, then I think it wouldn't be unreasonable by the landlord to refuse to add the licensee to the tenancy.
Apparently, if they are a licencee for 6 months, they are then entitled to be added as a tenant. The landlord can reasonably refuse, but we know the view the RTB would take of that.

How that interacts with a lease banning sub-letting, replacement tenants etc. doesn't seem to have an answer based on previous threads.
 
Apparently, if they are a licencee for 6 months, they are then entitled to be added as a tenant. The landlord can reasonably refuse, but we know the view the RTB would take of that.
Right, but if the tenants broke the no-licensees rule, would it still be unreasonable to refuse?

I mean the RTB can do anything. They might say that the tenants breaking the rule shouldn't be used to remove rights from the licensee.

But, if the licensee was not authorized, then the whole foundation of them being in the house was invalid.
 
I mean the RTB can do anything. They might say that the tenants breaking the rule shouldn't be used to remove rights from the licensee.
Exactly. The RTB is extremely pro-tenant and wants to avoid evictions at all costs (we've seen that even with non-paying and disruptive tenants), so it could decide that as the illegal licensee has been residing in the property for 6 months plus, paying their share of the rent and causing no trouble, it is unreasonable for the landlord to refuse to add them as a tenant.

The RTB might also decide that the overall no-licensee/no-subletting clause is unfair because it means the remaining tenant or tenants would have to pay the entire rent, remove it and allow the licensee to become a tenant on that basis.

Another alternative is to decide that they can't do anything with the licensee as they have no jurisdiction in that area. The landlord's only option then will be to try to evict the tenants for breach of the lease and their illegal licensee along with them. I think we know where that will go where the RTB is concerned - it is a small breach and eviction is unnecessary.

If the legal system was balanced, this wouldn't be an issue. It is very obvious at this stage that it is not.
 
Exactly. The RTB is extremely pro-tenant and wants to avoid evictions at all costs (we've seen that even with non-paying and disruptive tenants), so it could decide that as the illegal licensee has been residing in the property for 6 months plus, paying their share of the rent and causing no trouble, it is unreasonable for the landlord to refuse to add them as a tenant.

The RTB might also decide that the overall no-licensee/no-subletting clause is unfair because it means the remaining tenant or tenants would have to pay the entire rent, remove it and allow the licensee to become a tenant on that basis.

Another alternative is to decide that they can't do anything with the licensee as they have no jurisdiction in that area. The landlord's only option then will be to try to evict the tenants for breach of the lease and their illegal licensee along with them. I think we know where that will go where the RTB is concerned - it is a small breach and eviction is unnecessary.

If the legal system was balanced, this wouldn't be an issue. It is very obvious at this stage that it is not.
The RTB can only decide things based on the legislation. They cannot make stuff up. Unfortunately they can be wrong in their interpretation of the legislation. (eg about date of delivery post/email )

The Legal System is a different matter.
 
Which is why I don't do them.
Very wise and I think that is the only way going forward for landlords who are staying in the PRS - one and two bed properties rented only to singles or couples.

The three or four bed with tenants coming and going is just too risky.
 
The RTB can only decide things based on the legislation. They cannot make stuff up. Unfortunately they can be wrong in their interpretation of the legislation. (eg about date of delivery post/email )
The RTB Tribunal can decide what ever it wants. It should of course follow the legislation, but the practical reality is that it doesn't have to. The reason for this is that the landlords only option is to appeal the decision and take a case against the extremely well funded RTB to the expensive High Court. If the landlord loses, they pay their own costs and the RTB's costs as well. Plus, even if the landlord wins, the RTB have the financial wherewithal to appeal to the Court of Appeal.

These are risks that only very well off landlords ie. institutional ones can afford to take.

Again, the system looks balanced. The RTB must follow the law, but because of the financial disparity between the average landlord and the RTB that really isn't the case.
 
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.
 
Something just struck me about this tenant swap issue.

I rent to A and B with the tenancy commencing on 1 August 2026. On 1 August 2027, B leaves and is replaced by C - what is the rent setting documentation situation? Do rent setting documents have to be served on C, keeping in mind that per the legislation the documentation must be served when the tenancy commences ie on 1 August 2026?

The answer to this is very important. Not serving this documentation correctly is a criminal offence and also means that any rent increases have to be repaid to the tenants presumably going back to 1 August 2026.
 
Another unforeseen consequence is that landlords will only hold and rent one and two bedroom houses or apartments and rent to singles or couples. Replacement tenants should be much less of an issue there.

What a pity the Department of Housing and the left wing academics didn't sit down and fully think through their cunning plan.

I think 1 bed apartments are going to be like gold now. And you might even see a new practice of renting a 1 bed to one person and stating that nobody else is allowed to move in under the lease. Even if its a couple in it there is at least some chance of getting your property back if they split up or outgrow a 1 bed.
 
I think 1 bed apartments are going to be like gold now.
I think so too. Even a two bed to a couple is risky. They could split up and the remaining partner would want to rent out the second bedroom.

I don't think the government realise how fundamentally the new rules are changing the PRS and that these changes are not the ones they envisaged.
 
Rory Hearne on Instagram on these constructive evictions here

He is right - it is unfair on the remaining tenants and completely understandable that they would be hopping mad. But this was guaranteed to happen under the new rules. Posters here spotted it shortly after the announcement was made. The only way you'll get a vacant property to sell or keep rent up to market (especially if it currently well below market) is by going this route.

He says

The Minister for Housing must act to close the loophole now. Allow flat share tenants replace the one that leaves. Stop these new economic evictions.

I bet that will happen and tenants will get the right to replace the tenant leaving. It is the usual ever decreasing circles pattern, unintended consequences of the latest set of restrictions result in yet more restrictions, rinse and repeat.

The real consequence of this will be far fewer flat and house shares. Give it enough time and the only PRS rentals will be one beds to well paid single people who'll only be staying for a year or two.
 
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