Landlord not paying maintenance charges on time to property management co.

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    Landlord not paying maintenance charges on time to property management co.

    I have just joined the property management company as company secretary for a recent move I made. I have a quick question about a landlord who is renting 1 of the flats out but is paying 6 months in arrears for maintenance charges, when the deeds do state payment in advance. The previous directors and company secretaries have been fobbed off for 3 years why this landlord should not pay like everyone else. Any ideas how to get him to pay by direct debit at the beginning of the month for that month?

    #2
    You can't force someone to set-up a direct debit, any non payment will result in a breach of the lease. Instruct a debt collection agency to recover the money owed, they would then pay up unless they want to lose the property in bankruptcy.

    You can add on interest and admin costs if they don't pay on the due date, but the paperwork should state this when serving the service charge statement.

    Comment


      #3
      But maybe his tenant is not paying rent ? It is OK for the tenant not to pay rent but not OK for the owner of the flat ?

      Comment


        #4
        Originally posted by Perce View Post
        But maybe his tenant is not paying rent ? It is OK for the tenant not to pay rent but not OK for the owner of the flat ?
        In my opinion, it is irrelevant if his T is paying the rent or not that agreement is with the Landlord and the T, same with the Freeholder and the Leaseholder, I wouldn't mix the 2 situations. If he had no T and only used it during the summer months as he had another place do you think he should only pay for the months he uses the flat for?

        Inform the Leaseholder the due dates and the fees if the payment is late, if he has a problem with paying then he should communicate it with the freeholder/managing agent.

        Comment


          #5
          Originally posted by Perce View Post
          But maybe his tenant is not paying rent ? It is OK for the tenant not to pay rent but not OK for the owner of the flat ?
          I do not see the link between the two, if my tenants do not pay me the rent due then i still have to pay the half yearly ongoing maintenance charges to the company who look after the grounds, the two are completely separate contracts. If the roof needs repairing in one of the blocks then this money has to be found, if not then the block and the grounds fall into disrepair for all the owners/tenants in the block...... not fair, my issue would be with my non paying tenant.

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            #6
            What would you do if you were not getting rent, could not evict the tenant and had no money to pay service charges. You cannot sell the flat with unpaying tenant. The management company should give maintenance charges holiday to the owners. Even banks give it. Would you be happy to be made bankrupt? I dont know why this particular owner does not pay.

            Comment


              #7
              Originally posted by Perce View Post
              But maybe his tenant is not paying rent ? It is OK for the tenant not to pay rent but not OK for the owner of the flat ?
              But his tenant IS paying the landlord!

              Comment


                #8
                Originally posted by Perce View Post
                What would you do if you were not getting rent, could not evict the tenant and had no money to pay service charges. You cannot sell the flat with unpaying tenant. The management company should give maintenance charges holiday to the owners. Even banks give it. Would you be happy to be made bankrupt? I dont know why this particular owner does not pay.
                NOT the question I have posted, PERCE you have gone off at a tangent that is NOT relevant to the original post. Thank you.

                Comment


                  #9
                  What reasons has the landlord given for not paying service charge demands (if any)?

                  If any reasons have been given, does the leaseholder have a legal right, or at least an understandable reason, for withholding payment?

                  Have the demands been fully in accordance with the terms of the lease and all relevant legal requirements (e.g. has a copy of the correct "Summary of Leaseholders rights and obligations' been included with every demand)?


                  The action you should take is likely to depend on the circumstances (e.g. the answers to the above questions).
                  If the leaseholder has repeatedly asked for explanation of how service charges are bing spent, or has said that there is a problem with his flat that he believes is the freeholder's responsibility to repair, and has not been given a proper answer, simply answering the queries might be all that it takes.
                  If the demands aren't fully compliant with his lease, or applicable law, he doesn't have to pay anything.
                  If none of the above apply, you should be considering whether you should start legal action.


                  Originally posted by Perce View Post
                  But maybe his tenant is not paying rent ? It is OK for the tenant not to pay rent but not OK for the owner of the flat ?
                  Completely irrelevant.
                  The leaseholder is obligated to pay all properly demanded sums that his lease allows to be demanded, regardless of whether or not he is getting paid rent by his tenant.
                  If a landlord cannot afford to meet their financial obligations at times when they are not receiving rent, then they shouldn't be a landlord and should sell up - even if that seems harsh.

                  Comment


                    #10
                    Originally posted by GeeMan16966 View Post
                    I have just joined the property management company as company secretary for a recent move I made. I have a quick question about a landlord who is renting 1 of the flats out but is paying 6 months in arrears for maintenance charges, when the deeds do state payment in advance. The previous directors and company secretaries have been fobbed off for 3 years why this landlord should not pay like everyone else. Any ideas how to get him to pay by direct debit at the beginning of the month for that month?
                    Have you tried asking him ?

                    Comment


                      #11
                      Yes and he has given the same standard reply for the past 4 years...however I wrote to him and all is sorted.

                      Thank you everyone.

                      Comment

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