Rent arrears

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    Rent arrears

    Hi

    So I have a tenant who has build up large rent arrears and I have gone through the process with the solicitor of S8 for rent arrears and I have a court date In April. The tenant left the house last Monday and informed me they had left.
    To me it seems unlikely I will ever get any money back so I am happy to move on but I feel the tenant should have something attached to there record for this, otherwise they have got away with it easily. So the options are keep my court date and go there for arrears or try and a agree a settlement via my solicitor. Both options are costly and unlikely to result in me getting any money back, what do most people do in this situation? I'm reluctant to throw even more money at it, but feel I should do something otherwise they could do it again.

    Many thanks

    #2
    Is he working? Do you have any realistic chance of getting any money? How much extra is it going to cost in solicitors court fees from here forwards?

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      #3
      The tenant is not currently working due to restrictions and doesn't receive furlough. So I don't expect any money really, maybe in a year or so something may change and he is working. The solicitor said its £600 for a settlement to be arranged, court fees have been paid anyway but I would have to pay the solicitor so that would probably be more than that I guess.
      I'm happy to walk away from it even though its a large sum of money (nearly a years rent) but seems wrong to do nothing but I am relieved the tenant has now gone.

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        #4
        It’s throwing good money after bad

        just be grateful you have the property back and move on

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          #5
          I am very grateful I have it back and more than happy to move on without chasing the money. Just seems wrong someone can get away with it.
          The solicitor said in theory the tenant could claim costs against me if it didn't go to court or have settlement. But I think that's very unlikely he also said it is very unlikely.

          Comment


            #6
            I always chase arrears via the Money Claim Online (MCOL) website. If the tenant doesn't clear the arrears they get a CCJ.

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              #7
              Originally posted by Berlingogirl View Post
              I always chase arrears via the Money Claim Online (MCOL) website. If the tenant doesn't clear the arrears they get a CCJ.
              This. Landlords who don't bother are part of the problem.

              Comment


                #8
                You need to put your emotions aside and not throw good money after bad by going to court, but I would agree with those who say go for MCOL and CCJ. There should be consequences for not paying debt and a CCJ will follow them for many years.

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                  #9
                  Do the above, if we all do this with arrears then we help all other landlords and in turn that will (in the end) help us.

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                    #10
                    I issued ccj. The tenant paid but late so it will stay on his record as satisfied. Meanwhile as a revenge he does not allow me to do gsc.

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                      #11
                      I totally agree there should be consequences hence the post, I'm just trying to find the most efficient and least costly way of doing it. When I looked at Mcol it works out as a % of the debt so would still work out about £400 and would that definitely result in a CCJ?

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                        #12
                        I did my first claim for a lesser amount to see how it goes. MCOL cost was £105.

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                          #13
                          Originally posted by Berlingogirl View Post
                          I always chase arrears via the Money Claim Online (MCOL) website. If the tenant doesn't clear the arrears they get a CCJ.
                          +1

                          Absolutely. You owe it to future landlords (who bother with credit checks) or anyone else with credit agreement
                          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...

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                            #14
                            So am I right in thinking I could cancel the court date and not proceed with the settlement then move onto doing an Mcol?

                            Do they consider Covid effects on income, that has been a concern. The tenant could say there work has been affected by covid. Also I have no forwarding address and I am unlikely to get one.

                            Comment


                              #15
                              If your solicitor is satisfied with the surrender, and confident that the tenancy has ended, there's not much benefit going to court.
                              Even if the court ordered the tenant to pay the arrears, the ccj isn't easy to register via that route.

                              If you don't have an address for the tenant, you can use the last address that they gave you, which is the property you let to them.
                              That will, pretty inevitably, mean that they won't know about the case - and means that your chances of getting any money are close to zero in the short term.
                              There's a slim chance that the tenant will have paid to have their mail redirected, but you'll know that when the court papers start being delivered to the rental property.

                              That will mean that you'll win the judgement by default, which will give the tenant a ccj.

                              When they find out they can either apply to have the judgement set aside, as they didn't know about it, which simply means that the case would be re-opened (and they'd lose anyway, rent arrears are not really disputable).
                              Or they can try and settle - which would be nice.
                              Or they can just live with it.
                              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).

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