Tenant refusing to set up a standing order

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    Tenant refusing to set up a standing order

    Hi,

    Just wondering if anyone has any idea why my tenant would not want to set up a standing order?. She is from eastern Europe. She's been a tenant for 2.5 years. I said at the pre-contract I expect to be paid by standing order. She seemed fine about it. But then has always insisted on making an instant one off payment the day of the rent due date. I couldn't do much about it as I made the mistake of not putting Standing order payments in the contract. The first year she did manage to remember to pay on time. However 3 or 4 times in the second year she forgot or blamed it on a "bank error" and I had to chase to be paid. Twice in those circumstances she promised to pay by standing order and even sent me photos of the SO set up. So all has been fine for a few months, until this month she must have got the date wrong as she paid a day earlier. I rang my bank who confirm to me that she never set up a standing order a few months ago. So she is lying. But I can't understand why. Now i'm concerned she'll forget to pay again. I'm in two minds whether to email her, let her know what I know and say if rent payment isn't received for a 4th time this is a final warning I shall be giving her 2 months notice. Or is that unfair? Could she have a genuine reasonable reason for not wanting to set up a Standing Order?? Her bank is British popular bank and she has a good job with a monthly income (as far as I know from the estate agent who checked out her workplace). I wonder if this is some sort of tax evasion but she did ask me to send her written evidence of her renting my place for her home country tax office last year.

    Any information be appreciated.

    Thanks

    Ann



    #2
    Serve a s8 notice. She's been told and is in breach of contract.

    Comment


      #3
      You can't force someone to set up a standing order, and any contractual term that tried to do so would be unfair.

      Unless your bank is the same as hers, there is no way they would be able to know if a standing order has been set up or not (they might be able to tell if a specific payment was a standing order or not).

      As long as the rent is paid more or less when it's due, that should be fine.
      No one has ever "forgotten" to pay their rent.
      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


        #4
        The one question I have in my mind is how your bank would know if someone has set up a standing order with their bank.

        As for why, back when I rented I did the same thing. I would make a manual payment each month as opposed to a standing order. It was part of my regular checkup of my bank account. It would give me an opportunity to review my funds. By making a manual payment, it put me in to a different mindset. If everything is done automatically its easy to forget about your financial situation. By making manual payments it gave me an understanding of what I was paying and when and then the initiative to change my situation.

        Comment


          #5
          Thanks.

          I rang up my bank and they checked with the back office. It took them a while but they compared her received payment with another one that is a standing order incoming payment. They said the other payment shows it is a standing order. Her payment didn't. Anyway I guess I didn't really need to do that, as she had lied before and this time she made the mistake of paying it a day earlier than the standing order. So it was pretty obvious.

          JPKeates, thanks for your post. Correct me if i'm wrong but your comment "no one has "forgotten" to pay their rent" is implying to me that you are saying she purposefully didn't pay the rent those 3 times she didn't pay? This is what concerns me, is she hoping that I will not bother to check my bank as she thinks i am now relaxed with a standing order. Has she been trying to let one month go by unnoticed (then blaming it as a bank error or forgetting). The last time she forgot she actually said "now I know the importance of having a standing order. and I'll make it 3 days in advance just to be safe", then sent me photos of her SO she had set up on line. Could she be anymore dishonest????. I don't like being lied to, I think there will be trouble when she leaves, I don't think I will get her last month's payment, espically if she doesn't move on and need my reference. I'm thinking if she doesn't pay by standind order is she is hoping to get away with at least one non payment. So that when she comes to leave, if she loses any deposit money she can think oh well I got away with not paying one month.

          Comment


            #6
            Some standing orders don't show up on your statement or at your bank as standing orders even though they are. Banks change their systems. The only way to know for sure is to check her bank statements (a bit OTT).

            I'd wait and see if there are anymore late payments before taking any action.

            Could she be anymore dishonest????.
            Er, yeah. A lot more. You're over reacting. It's just business.

            Comment


              #7
              Originally posted by Ann74 View Post
              JPKeates, thanks for your post. Correct me if i'm wrong but your comment "no one has "forgotten" to pay their rent" is implying to me that you are saying she purposefully didn't pay the rent those 3 times she didn't pay?
              I'm saying that if she didn't pay the rent exactly on time, she probably didn't have enough money in her account to pay it.
              When people don't have much money, they think about it all the time, the idea that they'd forget a critical bill is a nonsense.

              You seem to have a decent tenant who mostly pays their rent on time and sometimes a few days late (or even a bit early).
              Sounds ideal to me.
              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


                #8
                Who says the tenant doesn't have much money?
                I was in a similar position a few years ago, couldn't be bothered setting up a standing order so just paid monthly when I was doing other banking.
                On one occasion I did forget, and the rent was a couple of days late.

                It seems like an odd thing to get hung up about, as long as the rent is being paid.

                Comment


                  #9
                  There could be any number of reasons why she doesn't want to set up a SO - all of which are not really your business.

                  If she is a good tenant in all other respects then is it really a problem to remind her if the payment is late? A void while you find another tenant will cost you more in time and money.

                  Try not to get wound up about it and just accept you need to remind her sometimes.

                  If it becomes more problematic then you would need to take steps - but it doesn't really seem problem to me at the moment.

                  Comment


                    #10
                    I couldn't agree more, jpucng62.

                    Comment


                      #11
                      Thanks for all your advice. Its good to hear other landlord's take on it ... I just couldn't understand why she is lying or why wouldn't someone just set up a standing order so not to forget again and risk being told to leave.She must have a real strong reason for not setting up a standing order, but I guess that will have to remain a mystery.

                      I will take the advice and just accept I'll need to remind her to pay sometimes.

                      Thanks, you all have a good day

                      Comment


                        #12
                        Originally posted by Ann74 View Post

                        I will take the advice and just accept I'll need to remind her to pay sometimes.
                        I wouldn't. I'd start taking steps to get rid if there's another late payment.

                        Comment


                          #13
                          In the absence of any agreement to the contrary in the tenancy agreement, the default method of paying rent is by cash which either party can insist on. However, the default, or indeed the method set out in the agreement, can be varied if a different method becomes established over a sufficiently long period. In this case, since the agreement does not specify payment by SO, it cannot be insisted on in any event.

                          A tenant setiing up an SO is of course no guarantee that the rent will be paid regularly or on time or indeed at all, since the tenant can cancel it at any time. The best it can do is to ensure payment on time so long as the tenant is in funds and does not cancel.

                          Comment


                            #14
                            Originally posted by jpkeates View Post
                            ...any contractual term that tried to do so would be unfair.
                            I do not see a requirement to pay by standing order as unfair.

                            Comment


                              #15
                              Standing orders aren't processed over weekends, so the rent will occasionally arrive out of sync anyway.
                              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

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