Tenant late in paying rent

[kosmicmisfit]

Hi

The AST began 4 months ago and a thought jsut occured to me.
At that time I had an AST signed and a inventory carried out. I did not issue any notices at the commencement of the tenancy.

Should I have had issued something?

The reason this topic has come up is because as per the tenancy the tenant should pay rent by the 18th of the month. Now since November they have had difficulties in paying on time due to illness in family and associated expenses.

The november rent was 2 weeks late.
The december rent was 2 weeks late
They have paid 40% of the January rent earlier that due. They still owe 60% of rent.

The tenancy began in Aug 09. So I have been accomodating but am not sure what to do next.

Please guide.

S

[jeffrey]

1. Are you L or L's Letting Agent?
2. There is no automatic need to serve any Notice on T.
3. Some Landlords serve a s.21(1)(b) Notice as a precaution.
4. In this case, L could serve a s.8 Notice- but only on discretionary grounds 10/11.

[kosmicmisfit]

Hi
Thanks for the reply

I am a LL.

The tenants are still in arrears by £400 ie 40% of monthly rent.

Its been 7 months since start of the tenancy. So I am not sure If I should allow them more time to pay the outstanding or ask them to vacate on the basis that its been more than 6 months of tenancy.

[P.Pilcher]

It is your call: If the tenant is late due to unfortunate circumstances but has kept you fully informed as to their financial situation and when they intend to pay their outstanding rent, you may consider letting them remain in residence. You should however consider serving them with a section 21 notice giving them 2 months notice (ending on a rent day) which is your only guaranteed way of getting them out unless that slips to two months rent due when section 8, ground 8 can be used. In this instance however, should they bring their arrears down to below 2 months then only the discressionary grounds 10 and 11 can be used where a possession order is much harder to obtain.

P.P.

[kosmicmisfit]

Thanks.

Its a shame that since this is my first property and within 6 months of the AST this is happening. But its a lesson learned!

I cannot decide on weather to serve the section 21 notice. I don't want to force the tenants out. Perhaps I am being too accommodative! Its hard to tell

Would rather prefer that they pay the rent on time then to go through the agro of serving notices etc.

[jeffrey]

Is this case of:
a. can't pay; or
b. won't pay?

[stephenenglish]

Thanks.

Its a shame that since this is my first property and within 6 months of the AST this is happening. But its a lesson learned!

I cannot decide on weather to serve the section 21 notice. I don't want to force the tenants out. Perhaps I am being too accommodative! Its hard to tell

Would rather prefer that they pay the rent on time then to go through the agro of serving notices etc.

I understand how you feel I felt the same when similar circumstances happened to me.
It cost me a lot of money and frustration.
An agent told me after my first bad experience if they don’t pay on time then they don’t have the money so you should legally get them to leave and find someone else who does have money. I now follow this rule if T’s don’t pay on time. It’s still a lot of hassle but if you catch it quick it don’t cost so much. The longer you leave it the more expensive it gets.

[kosmicmisfit]

I have spoken to them and its a question of cant pay. But I am going by what they have said to me.

[davidjohnbutton]

Tell you what - advise the following people that you can't pay:-

1. Your mortgagees
2. Your local council tax department
3. Your water rates company.
4. Your Gas supplier
5. Your electricity supplier

Tell them you cannot pay cos your tenant cant pay you - see what sympathy you get!!!!

As another man said, its your call as to how much sympathy you want to extend, but you are running a business - dont be too soft!!!!!

[kosmicmisfit]

You make a very convincing argument.

Thank you.

[kosmicmisfit]

Let me know if I am being unreasonable.

Since January the tenants have had unpaid rent of £600.

In Feburary they paid the monthly rent in full and an extra £180 in respect to the unpaid rent.

In March they underpaid this months rent by £60. Which they say they will pay by 26th.

They still have £480 of unpaid rent.

If I were to insist that they repay the outstanding amount by April 16th along with their April rent. Else I will be forced take legal remedies.

Am I being reasonable ? or Unreasonable?

[Wes Finchley]

Reasonable

I think you have been very fair with your tenants and it is a shame that this has happened with your first tenancy. One other consideration:-

Should you decide to pursue the eviction route, how simple do you think it will be to replace the income that you might get if the existing tenants stay?

From what you have written it appears your tenants are genuine and would pay if they could. It´s all a bit of a balancing act!

[dontbnosey]

I think you are being more than reasonable. I have also been understanding and reasonable with my tenants since June last year when they started incurring arears and now we are 9 months down the line, £1500 in arears and issuing section 8 notice and very possibly a court order to re-gain possession. Being understanding has got me nowhere and I wish I had nipped this in the bud a lot earlier!

[kosmicmisfit]

Hi

The AST began Aug 09. It has a break clause. I would like to ask the tenants to leave.

So I as I understand that I need to issue a s21. Can I issue a s8 at the same time? So that I get possession after two months.

Thanks

[chappers2341]

Just to clarify you can't issue a section 21 to expire before the end of the fixed term and not at all if their deposit isn't protected and you can only issue a section 8 on mandatory grounds when they are 2 months behind with their rent.