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We have assured shorthold tenants who gave two month's notice to move out on 1 September. The property has been re-let from the day following their departure and the landlord wants to know if we have to refund the rent to first group of tenants?
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It is not possible to re-let a property without accepting a surrender from the first group of tenants (since to be an assured shorthold tenancy you have to have exclusive possession). If the landlord has accepted surrender, the tenacy no longer exists and there is no rent payable. Since the landlord has not suffered any loss of rent he cannot reasonably expect to retain the rent from the leaving tenants.