Tenants have stopped paying rent after notice given

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    Tenants have stopped paying rent after notice given

    Hi,
    I recently issued an SP1 notice to my tenants of 6 years, giving them 2 months notice. My plan is now to sell the property.

    Since then they have stooped paying the rent, I hold their deposit (1 months rent - value less than the current 1 months rent) with the deposit protection service. If they leave the property owing the 2 months rent am I able to use that deposit to cover the arrears? Obviously, it's a concern as I will not know the state of the property until they leave, but hoping all is OK. The deposit won't cover 2 months missing rent but at least it will be something.

    I know within the protection service you have to raise a dispute to make a claim on the deposit, but do they allow rent arrears as a reason for disputing the deposit?

    Any advice will be greatly appreciated.

    #2
    Rent arrears are claimable agains the deposit.
    The deposit doesn't limit your claim against the tenant, so you can use the small claims process to (try to) recover anything the tenant owes.

    When they owe two month's rent - which is usually after they miss the second payment, you can serve notice under section 8 which might a) make the tenants realise you are serious and b) allows for a quicker route to repossession and a court order to pay what's owed.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Is an SP1 supposed to be an s21?
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        What makes you think the tenants will leave when the notice expires? The Government statistics on recovery of possession shows that the average time if the tenants don't cooperate is around 41 weeks.

        Comment


          #5
          Rent stopping is VERY common after a GENUINE "no fault" notice issued. Amateurs take heed! Maybe the tenant needs to save for a new property rent/deposit/fees? Maybe they don't understand their obligations or an act of retaliation?

          If a LL really needs property back to sell he should tread very carefully. Far more than 2 months should be given and the tenant should be helped to secure new accommodation IMHO. This is where I have sympathy with the Labour Party calls (Ed Milliband). Why should a LL cause major disruption/cost to a PERFORMANT tenant's life to simply "cash in" their "investment". Please, no carping from so called "accidental" landlords either.

          Comment


            #6
            John Duff,

            Its hard to isolate this example from the problems with the rest of the system though. Landlords use s21 rather than s8 for rent arrears, anti-social behaviour, damage and a range of other breaches because the court system is defective and they can't have confidence that their case will be treated fairly and in a timely manner. s21 suffers from these problems too of course but at least if they get the basics right they will certainty of possession.

            Comment


              #7
              Agree with what you say. However, I stated GENUINE "no fault".

              Comment

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