Student lease agreement - 6 sharing house. Jointly liable. 3 have pulled out.

[paulfoel]

Told son this was a really bad idea at the time.

Along with 5 friends they signed a 12 month lease agreement for a student share house. At the time, told him to hang on a bit but he wouldn't. Hes got Aspergers so can be a bit impulsive - its tough though when hes living away and hes an adult.

Anyway, as I suspected might happen, 3 of the original 6 have now decided they no longer want to rent this house.

Estate agent is playing hard ball and saying they signed the contract, come July someone will be paying the rent, unless they get replacements.
Of course, these 3 have zero interest in finding replacements and just want to walk away. Son has tried to tell them but not interested.

Its going to come down that the whole idea gets cancelled by the looks. Would the estate agent expect 6 new replacements or would they likely consider just one replacement.
Son is being the sensible one here (never thought I'd see the day!) but theres no way hes going to find 6 new people if the others don't play ball.

On the plus side, I didn't sign the guarantor document. 3 of the parents did (inc one of the 3 that are leaving) apparently. Now that would be funny if come July when they've no made no effort that they come after this guarantor.

Any advice on best way forward here?

[atticus]

If this is anything like the typical student tenancy agreement that I get to see here in my university town, all 6 will have signed an agreement under which each is fully liable for the full rent (joint and several liability).

Your son may therefore find himself being sued for the shortfall in rent over the remainder of the 12 month term, together with the others and the guarantors.

Finding people to come in might be a good idea if it can be done.

[islandgirl]

Some student estate agents are horrible - 2 kids at uni at the moment. There are usually Facebook pages advertising rooms for next academic year - get on them! Ask the Estate agent to market the spare rooms. Ask the estate agent to write to the parents of those leaving to explain their liability and to confirm when they have done so. This may be the point where a parent getting in touch with the agency makes them realize they are not dealing exclusively with the students but with someone who has some life experience!

[paulfoel]

If this is anything like the typical student tenancy agreement that I get to see here in my university town, all 6 will have signed an agreement under which each is fully liable for the full rent (joint and several liability).

Your son may therefore find himself being sued for the shortfall in rent over the remainder of the 12 month term, together with the others and the guarantors.

Finding people to come in might be a good idea if it can be done.

Yep thats the one. Didn't even know this sort of thing existed - crazy.

Just glad I never signed as guarantor.

[paulfoel]

Some student estate agents are horrible - 2 kids at uni at the moment. There are usually Facebook pages advertising rooms for next academic year - get on them! Ask the Estate agent to market the spare rooms. Ask the estate agent to write to the parents of those leaving to explain their liability and to confirm when they have done so. This may be the point where a parent getting in touch with the agency makes them realize they are not dealing exclusively with the students but with someone who has some life experience!

Yeh I have done. Ignoring me pretty much.

They've basically said, hard luck they all signed the contract, they're all liable. If you want to get removed from the contract you (the students) need to find replacements not them. Otherwise rent is due on 1st July.

Its crazy. Students leave, fail courses etc and they've signed a lease in december to start next July....

Yeh I know they're all adults but they've signed a massive financial commitment. My son has Aspergers which makes him very impulsive to say the least and he gets tunnel vision - if the estate agent told him it was a bargain he'd have jumped at it and not thought it through.

Looks like only option is going to be to find replacements. I've offered to find ONE replacement to replace son but, like I said, the estate agents don't care.

He is registered as a disabled student and also gets DLA due to his condition. Is there anyway this could get him out of the contract legally?
Hes doing great to be honest, really proud of him, but, of course, he has these "differences". I fear this is not going to be the last time he signs something he probably should not have.

[islandgirl]

I would doubt the disability would be enough in this case. Your son is clearly able to attend university and has capacity.
If the others are determined to stay in the house I would
a) get son to join ALL the find a room groups on FB and adverstise his room
b) advertise the room on uni noticeboards
c) I agree that signing up for next year is a risk - my kids usually sign in December for the following January
d) I would read the contract very carefully and see if there is any clause allowing changes - the problem you have is the joint and several liability of course so perhaps deal with that as follows:
e) I would ask the remaining 3 if they want to stay and if not approach the agent to relet the whole property. This would be a much stronger proposition than reletting 3 rooms. Get them all to walk away. It is only Jan - it would be unreasonable for the agent not to take steps to mitigate the situation by reletting the whole property (it is not June)
f) I think I would (if you get that decision) write to the agent and explain this and ask for a personal meeting if the office is not too far away
g) In my experience, none of the guarantor agreements i have been sent and signed for my kids would stand up in court (I know you have not signed) so the agent may find himself with 6 penniless students to sue! This is partually why I have been happy to sign them!
h) Write directly to the owner. Find them on the Land Registry (£5 or so). Explain the situation and your son's problems and ask for the LL to tell the agent to release him (or preferably all of them) and put the house back on the market.
No idea if any of this will work, just saying what I would do in this situation
Keep us informed please!

[atticus]

islandgirl speaks wisely.

As I am regularly telling students, read and understand before you sign, not after. These tenanacies are big commitments; they can't simply change their minds and should take care not to fall out over each other's cornflakes etc.

[paulfoel]

I would doubt the disability would be enough in this case. Your son is clearly able to attend university and has capacity.
If the others are determined to stay in the house I would
a) get son to join ALL the find a room groups on FB and adverstise his room
b) advertise the room on uni noticeboards
c) I agree that signing up for next year is a risk - my kids usually sign in December for the following January
d) I would read the contract very carefully and see if there is any clause allowing changes - the problem you have is the joint and several liability of course so perhaps deal with that as follows:
e) I would ask the remaining 3 if they want to stay and if not approach the agent to relet the whole property. This would be a much stronger proposition than reletting 3 rooms. Get them all to walk away. It is only Jan - it would be unreasonable for the agent not to take steps to mitigate the situation by reletting the whole property (it is not June)
f) I think I would (if you get that decision) write to the agent and explain this and ask for a personal meeting if the office is not too far away
g) In my experience, none of the guarantor agreements i have been sent and signed for my kids would stand up in court (I know you have not signed) so the agent may find himself with 6 penniless students to sue! This is partually why I have been happy to sign them!
h) Write directly to the owner. Find them on the Land Registry (£5 or so). Explain the situation and your son's problems and ask for the LL to tell the agent to release him (or preferably all of them) and put the house back on the market.
No idea if any of this will work, just saying what I would do in this situation
Keep us informed please!

Thanks IslandGirl. It has all fallen apart now and no-one wants to stay in the house.

Estate Agent has been advised that no-one wishes to proceed. I've also offered to find one person to replace my son.
To both of these the reply has been, you signed the contract, we will not advertise it again, you need to find any replacements or come July the costs will fall to you.

I see what you mean - hardly mitigating the situation!

See what you mean. Might be an idea to contact the landlord - hes going to be keen to get it sorted I guess and not have hassle come July.

[paulfoel]

islandgirl speaks wisely.

As I am regularly telling students, read and understand before you sign, not after. These tenanacies are big commitments; they can't simply change their minds and should take care not to fall out over each other's cornflakes etc.

Agreed - we told him not to do this but he went ahead anyway. I can't imagine how many student house shares organised 7 months in advance fall through like this.

He has now applied and been accepted for 2nd year in halls of residence which I'm happy about.

[islandgirl]

Thanks IslandGirl. It has all fallen apart now and no-one wants to stay in the house.

Estate Agent has been advised that no-one wishes to proceed. I've also offered to find one person to replace my son.
To both of these the reply has been, you signed the contract, we will not advertise it again, you need to find any replacements or come July the costs will fall to you.

I see what you mean - hardly mitigating the situation!

See what you mean. Might be an idea to contact the landlord - hes going to be keen to get it sorted I guess and not have hassle come July.

I think it is time to get tough with this agent!

The fact they all want out is good news I believe. In your shoes I would formally write to the agent and advise him of this. Tell him that none of them will be moving in or paying rent in July. Explain his duty to mitigate losses. Explain that you will vigourously defend any attempt to claim from you as will the other parents. Explain that the majority of guarantor agreements are unlikely to be valid and the ones signed will probably not stand up in court, therefore the LL is not going to be happy when the only option is an inevitably fruitless attempt to extract money from penniless students - especially when the agent had 6 months to let to others who WOULD be paying. I would explain that he has a duty to the LL to mitigate his losses and the best way to do so is to put the property back on the market. Say that you are taking other steps to ensure that other parties involved in this issue are made aware of it (I would not say any more) and that you are going to take legal advice.
In the meantime I would definitely contact the LL and explain all of this.

Make sure you have told the agent IN WRITING if you have not already done that stating that they will all not be moving in - that puts an evidential peg in the ground as to how long the agent has to relet.

I would also suggest a post on Landlordzone - forum for tenants and LLs. Do not be offended if you get some "curt" responses - there are a lot of good minds on there (I linger too)

[atticus]

On the question of guarantees, I have seen many. In some cases the agents have messed up, but in others they have done everything correctly. You simply don't know which it will be here - and have the good fortune not to have given a guarantee.

[islandgirl]

I agree. Usually you do not have sight of the AST before signing which will invalidate the guarantor agreement but they MAY have got it right. However they will wonder! As you can see I suggest the OP says they probably will not stand up or may not stand up...raise the possibility and put a doubt in their mind (and the LLs mind) Perhaps the OP can tell us if the AST was sent to him before the point he was supposed to sign? If not then the other parents will probably not ahve seen it.

[islandgirl]

Forgot to say - Agent is bound by law to give you the LLs details (or rather to give your son their details) but you may wish to do this via the Land Registry and "keep your powder dry" so to speak!

[paulfoel]

I agree. Usually you do not have sight of the AST before signing which will invalidate the guarantor agreement but they MAY have got it right. However they will wonder! As you can see I suggest the OP says they probably will not stand up or may not stand up...raise the possibility and put a doubt in their mind (and the LLs mind) Perhaps the OP can tell us if the AST was sent to him before the point he was supposed to sign? If not then the other parents will probably not ahve seen it.

AST?

But no I was sent nothing just the guarantor form to sign.

[paulfoel]

Forgot to say - Agent is bound by law to give you the LLs details (or rather to give your son their details) but you may wish to do this via the Land Registry and "keep your powder dry" so to speak!

Oh OK so if I ask they have to tell me?

Could work either way I guess? They could think "Oh no hes going to tell the landlord and landlord'll be upset"