Business partner problems

[Hairlady]

Hi I recently rented a salon with my business partner we both signed a 12 month tenancy agreement and agreed to split the rent and bills 50/50... at 1st we said whatever money comes into the salon would go into 1 pot then take out bills rent etc and what was left we would split between us... bit then I realised she was hardly ever in the salon and I was a lot busier and earning a lot more than her so I suggested maybe we keep hold of our own takings and just pay bills when they came in and rent at end of each month then what's left over is our own earnings... since doing this she has done her own thing hardly ever in never got any clients hardly and just no interest in the salon.. last week she text me asking if I can afford the salon by myself as her husband is buying her a salon she has already discussed with our landlord and he is happy to do me another tenancy agreement solely in my name?!?!?! So it's all kicked off between us because I refused sole tenancy and told her she is still liable for her half of the rent etc. ..so she spat her dummy out but said she will have to stay then until the lease is up but she won't be doing another year and that she will only be in if clients want to book in for a tan...therefore she thinks she shouldn't pay half towards bills like gas electric water etc... what are people's views on this as I feel I am about to lose the plot with it all and may have to give the salon up which I don't want to do at all!! sorry for lengthy thread xxx

 

[surf girl]

First off What does your contract say?

If your doing all the work & managing the bills at the mo would it be so bad to let her get out? Or could you not afford the bills alone?

 

[Hairlady]

As it's only 4 months in I can't afford it by myself she is still liable for her half until the lease is up so until I can find someone else to maybe rent a space or take over her half we are stuck with each other until Feb next year x

 

[surf girl]

What does your break out clause say tho? If you don't have one she's not liable for anything really, how does she feel about subletting to a renter? Are you communicating at all at the moment or no?

 

[Hairlady]

There isn't 1 I don't think... the landlord says we are both liable until the lease is out unless I find someone else or take full tenancy myself...yes we are communicating and she is happy for a subletter to rent the beauty room or find someone to take her half of the lease xx

 

[Lauren121]

If she wants to leave and you've told her no as you can't afford it it's down to her to find a replacement for herself but would need to consult with you when she thinks she's found someone until then she needs to be paying her half regardless of wether she's there or not x

 

[surf girl]

Do yourself a favour with your replacement business partner, get a full contract drawn up, you've been very nieve going into business without one, I agree with Lauren with regards of who's problem it is, but if she's bound by the landlord agreement to cover half the bills just continue paying your share and leave it up to her to sort the rest

 

[Grace_Hair]

If neither of you were in very often. Who would she expect to be paying the bills??

I like Lauren said. She wants out. It's her responsibility to either pay, or find someone to sublet to.

 

[Hairlady]

Thank u everyone xx

 

[AcidPerm]

If you haven't got a separate written agreement between you and her and she refuses to pay her share of the rent, you're stuffed.

Although you're both on the tenancy agreement, I assume you have signed for 'joint and several liability' clause rather than 'tenants in common'. Therefore, if she doesn't pay, the landlord can pursue you for 100% of the rent due.

Do you pay your bills to the landlord or have you got separate contracts for utilities, water, electric, rates, telephone etc.?

Although it should be her responsibility to find someone to take her place, you might be better off trying to find another person to sublet from you in the short term (with a written contract drawn up by a legally qualified person, not an online DIY job).
Then you can take over the full tenancy.
That way, if the sub-letter defaults, you can legally pursue them for breach of contract. Plus, you can ensure they share the same values as you in terms of turning up for work.