Let to a company, not receiving rent.

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  • Let to a company, not receiving rent.

    Hi , i'm new to this forum. I let out my house through an agency last year to a company. As i was a first time landlord, i think i made some errors as to choosing the estate agents and then the tenants. Now the situation is: i've let to a company who keeps their employees in the house. That tenant company has hired another property management company to look after that house. At the moment there is nobody living there. I give 10% of my rent to the estate agency for management. I didn't buy the rent guarantee insurance at start of the tenancy. The first 6 months i got regular rent. Then the contract was renewed for another 6 months and is supposed to end on 28 April 2006. I didnot receive the rent in December 2005 , which I am still chasing. I did get regular rents in Jan & Feb 2006. Now the agency told me that the tenants have YET not payed the rent for March 2006. I had already given them a notice to vacate the property at the end of this contract that is 28 April. The deposit the agency kept in the begining was equal to one months rent that is £495. I am sure the property will need cleaning and some carpenters work after I get the property back - i wish to live there from thereon. The agency has recently sent the tenants a Solicitors letter - then another solicitors letter to pay rent within 24 hours. Still no reply.

    In short the tenants havent payed 2 months rent already, and may not pay for the coming (last) month. What should i do? Will be grateful for your help. Will I get the reply on my email address, if not please email reply to drmqureshi@gmail.com. Thanks once again.

  • #2
    take them to court


    • #3
      HOW do I take tenants to court... what will it cost?

      Well the tenants didn't pay the advance rent for this month as well (April 2006). tenancy is supposed to expire on 28 April. they are in total of 3 months arrears. Can i Repossess, whats the procedure. how do i take them to court. how expensive would that be?


      • #4
        section 21

        Hi Misbah

        I'm new to this forum, but I know its section 21 and theres a fee of approx. £140 you pay to start it off.

        Check with an estate agent, as this is only hearsay.

        Good luck!


        • #5
          1. A S.21 Notice is invalid as it's not an Assured Shorthold Tenancy Agreement, but a Tenancy at Common law.
          2. The tenancy will expire by "effluxion of time".
          3. Theres no requirement to serve Notice on the tenant (who in fact will be the company, until after the end of the fixed term iof the tenant is still in situ, and you MUST serve a minimum of 28 days Notice to Quit on a monthly tenancy at the company's registered address, and send a copy to the incumbent occupant at the property).
          4. Did the agent obtain a copy of the Articles of Association for the company to see if the person signing the tenancy agreement was authorised to do so? Of course not. That means you could sing for your money.
          5. If the agent has messed up then you will have sue them in court if they don't cough up, for damages equivalent to loss of rent and distress!
          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.


          • #6
            going to meet a solicitor tomorrow!

            Thanks for the help,

            Still the tenants could not be contacted. I think the tenancy agreement was an assured shorthold tenancy agreement. It had to be renewed every 6 months. 7 weeks before the end of the first 6 months, I contacted my estate agent to ask them if the tenants were happy to make the next agreement for 3 months, because i want to move in. He replied in writing to me that he would offer the tenants another 6 month agreement, a month before the current agreement ends. If the tenants would accept then I would have to pay 1000 pounds to the estate agent if I wanted to repossess any time before the expiry of the next complete six months. Also, I had to notify that i want to reposse ss atleast 2 months before the end of the next tenancy. Therefore, 3-4 months before the end of this last tenancy(ending end of April) i asked the estate agent to send them a notice to vacate the property on 28 April.

            I personally till last month thought that there were tenants living in the property , whose rent was payed by their employer {a company }. This is the impression the estate agent gave me. So when I didn't get the rent at the end of December for December, i contacted the estate agent who told me that the tenant is saying that he is himself waiting for the payement to clear through his employers. As soon as his company will give him the cheque , he would pay the rent. so i kept quiet. End of Jan I got a rent for one month. I asked my estate agent , and he told me that the tenant is saying, even he doesn't know why his(the tenants) manager hasn't paid for 2 months instead of one. so he would ask them to reimburse the money. so i kept quiet
            In Feb i got one months rent again. In march (last month), i had an oppurtunity to see the property, because a surveyor needed to see it as i was remortgaging. I went there myself and was met by a man, who said i'm a property management guy from a different management agency. I look after the property for a company who keeps its employees there. I went in and was shocked to see the place was a mess. it was being used like a hostel,empty at the moment with no inhabitants. There were single beds against walls in each room. Total of 4 , thats not over crowded. Against each bed there were brackets and small shelves bolted into the walls!. My Wardrobes in each room, brandnew MFI ones, were missing in the bedrooms. the conservatory furniture was missing. somebody had tried to chisel through the inside of the door that leads to the garage ( which was locked). some more mess like that. I assumed that the manager had kept the furniture from these sort of employes in the garage which was locked. Later found out that that manager doesn't know about any wardrobes and that he thinks the last employees took them with them!.

            I asked that manager that if nobody was living there at the moment, i would not mind if he wants to leave early and i'll let him the last months rent off. He seemed happy and said this would be excellent for him. He said the owner of the company is in a 'ranch in south africa' for vacation!, and he would get me my rents after the next weekend. He promised he would bring his building contractors and get all the things sorted out. Since then it has been impossible to get hold of him. Last week he called to say that the owner has just returned from vacation and he will talk to him. Now i think he has barred my mobile so that i go directly to his voicemail. The estate agents property manager answers my phone once a week saying i'm trying to contact the tenants, doctor!

            I am LOST. The house i'm renting at the moment, I have to leave on the 29th !. i thought i would get the movers on 28th and things would be sorted. Me and my wife are panicking now, we have to leave the house we are in now, what if we dont get our house back by then. I'm going to the solicitor tomorrow, thanks for listening , i feel better! - I also value your advice.


            • #7
              Ear to Lend

              Hi Misbah,

              You have probably read my emails and I'm going to the police today for ex tennants threatening me and my family. As you'll get advice from your solicitor soon, try to stay calm. You can always ask to stay on for a further month to your current landlord, just call him and say your plans might change and whats the possibility of staying on another month. I'm sure if he doesn't have any new tennants he'll oblige. If he has, then start looking for something or can you stay with family or something in the meantime?
              Best of luck,


              • #8
                thanx for listening

                I will be going to a solicitor later this morning. The first appointment (today) is free. I will post what happens there.


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