Notice for rental arrears on a periodic tenancy

[Betty]

Hi all,

I am letting a property under an AST and the initial 12 month fixed term has now expired. My tenant is over £900 in arrears, however, despite her continually missing or paying rent late, less than 2 months rent is owed as she receives Housing Benefit which is paid directly to me. She is also not keeping the property in a good state of repair.

I would like to regain possession asap and try to reclaim arrears and damages and wonder if someone can advise me on the following:

1) Given it is a periodic tenancy, can I only serve a Section 21 notice?
2) If it is valid to also serve S.8, can I use grounds 8 for rent arrears (given she is 2 months behind in terms of her share of the rent)?
3) The deposit is held in a Deposit Protection Service - will I be allowed to retain this as payment towards rental arrears (as well as damages)?

Many thanks in advance!

[MrJohnnyB]

You can serve a S8 notice under grounds 10 which is discretionary - ie Judge may or may not allow it.

If she is not 2 months behind ie missed two payments then no you cannot serve this notice although if the arrears amount to more than 2 months then obviously you can.

You then put an applicaiton to recieve the entirity of the rent deposit back and your tenant is allowed to appeal against it if necessary.

[Mrs Jones]

I would issue an s.21 as well so at least you get possesssion in case the s.8 doesn't work. You can chase the money later if you think you will get it.

[Betty]

Thanks for the replies.

I was confused with the wording on the S8 notice and wanted to check it was ok to use for a periodic tenancy...
"Do not use this form if possession is sought on the "shorthold" ground under section 21 of the Housing Act 1988 from an assured shorthold tenant where the fixed term has come to an end"

As it's fine, I'll issue both an S21 and S8 and hopefully get her out sooner.

Many thanks

[David TFP]

If you go to court on the section 8 notice then make sure the court order specifies the deposit should be used towards the arrears or The DPS will not pay you the money, even on the court order.

[silvercar]

As housing benefit is paid direct to you, remember that this arrives in arrears, so when it is owed according to the tenancy but not paid because the LA pay in arrears it can still count towards the arrears.

You may want to consider that a HB tenant, where the rent is being paid directly to you is a safer bet than risking a void while you find a new tenant. A new tenant could be someone employed who could lose their job or who could want to claim and then you'll be in an arrears situation again.

However galling it is to put up with the arrears, it is a secure income if the council are paying you direct.

[Betty]

Thanks they're both good tips.

It does seem unfair that you can't retain the full deposit automatically to offset arrears. I certainly won't see it again if I have to claim it back retrospectively, so I hope it remains in the DPS whilst in dispute.

Point taken on HB payments being guaranteed. But I'm only getting 2/3 of the official rent whilst she's running my property down, so better out I think.

[johnboy]

If you go to court on the section 8 notice then make sure the court order specifies the deposit should be used towards the arrears or The DPS will not pay you the money, even on the court order.

Are you saying the DPS will not release the deposit to the landlord if rent is legally owed by the tenant but there are no damages at the end of the tenancy?

[jeffrey]

You can serve a S8 notice under grounds 10 which is discretionary - ie Judge may or may not allow it.

AND ground 11 (persistent late payment).