T in arrears with rent- what action can L take?

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    T in arrears with rent- what action can L take?

    This is my first time as being a landlord and my tenant is now 2 months is arrears he keeps promising to pay but always has an excuse when the payment is due to come out.

    What is the best thing to do ? I'm hoping he will pay up up what he owes then i can transfer it on to a managed service with the estate agents so they can deal with the rent issues in the future

    What would the best course of action be if he dosent pay his arrears ?

    I would be grateful for any advice

    Thanks

    #2
    evict

    start eviction proceedings, do not waste time. Depending on you AST and dates, either s8 or s.21. The day they are late you have to be very hard on them, almost aggressive but legally. Tenants in general do not care about you or your property to them its just a roof over their head!

    Comment


      #3
      Originally posted by d_83 View Post
      This is my first time as being a landlord and my tenant is now 2 months is arrears he keeps promising to pay but always has an excuse when the payment is due to come out.

      What is the best thing to do ? I'm hoping he will pay up up what he owes then i can transfer it on to a managed service with the estate agents so they can deal with the rent issues in the future

      What would the best course of action be if he dosent pay his arrears ?

      I would be grateful for any advice

      Thanks
      If the rent is <25K pa, and the property is in E&W, then you can issue S8 grounds 8/10/11 as soon as there are two months owing, that means that where there is one month unpaid and the next rent is not paid on the due date, so one month and one day = S8. You will be able to start court proceedings after 14 days.

      There are thousands of posts about S8's on this forum, so I suggest you do a bit of reading and find out about them. At the same time issue a S21, depending on how far into the tenancy he is (Fixed term or SPT). A S8 will give you a court order for the money owing, a S21 will not.

      Your main concern is to get the property back so do not be sidetracked by sob stories.

      If you are new to it it may be best to use an agent, but be aware that if you choose a poor one it could cost you even more.

      Have you protected any deposit you hold from the tenant, this is important.
      I offer no guarantee that anything I say is correct. wysiwyg

      Comment


        #4
        Originally posted by d_83 View Post
        What is the best thing to do ? I'm hoping he will pay up up what he owes then i can transfer it on to a managed service with the estate agents so they can deal with the rent issues in the future
        Don't hold your breath on that one - and read any agent's 'management' contract with you very carefully.

        Many agents will collect rent (after all, their commission is often based on it), and send out reminder letters if rent is overdue, but not chase it up through the courts or help you evict the tenant if he continues not to pay the amount owing. It would appear (from the experience of LLs on this forum at least) that you are on your own with that.

        For this reason it is crucial to take evry step possible to get a good tenant in the first place, through careful selection and referencing.
        'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

        Comment


          #5
          Originally posted by jta View Post
          Have you protected any deposit you hold from the tenant, -this is important.
          No, it's not, unless:
          a. L wants to use a s.21 Notice procedure; or
          b. T takes action against L under s.213 etc. of Housing Act 2004.
          JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
          1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
          2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
          3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
          4. *- Contact info: click on my name (blue-highlight link).

          Comment


            #6
            Originally posted by jeffrey View Post
            No, it's not, unless:
            a. L wants to use a s.21 Notice procedure; or
            b. T takes action against L under s.213 etc. of Housing Act 2004.
            I should have explained that further Jeffrey, I was trying to make sure the OP was aware of the possible pitfalls regarding the 3x penalty and non-validity issue of S21 if it had not been. I shall go and stand in the naughty corner.
            I offer no guarantee that anything I say is correct. wysiwyg

            Comment


              #7
              Originally posted by jeffrey View Post
              No, it's not, unless:

              b. T takes action against L under s.213 etc. of Housing Act 2004.
              This could be used as a potential defence to section 8 possession proceedings
              Last edited by Paul Gibbs; 10-06-2010, 16:58 PM. Reason: sorry - didnt realise the topic had changed!
              PAUL GIBBS, solicitor, Jacobs & Reeves. My comments on this forum are correct to the best of my knowledge and belief. No responsibility or liability is accepted by reason of reliance upon such comments. This disclaimer would not apply to direct clients of Jacobs & Reeves where there is a valid retainer in place and I would be happy to confirm any advice if formally instructed. . Jacobs & Reeves now offer a fixed fee possession service.

              Comment


                #8
                Originally posted by Paul Gibbs View Post
                This could be used as a potential defence to section 8 possession proceedings
                Are you sure? I can't see the relevance.
                JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                4. *- Contact info: click on my name (blue-highlight link).

                Comment


                  #9
                  Failure to protect gives T the right to claim compensation. T is entitled to argue that those damages can be offset against rent due. Such that it reduces T's liability to LL at the date of the court hearing to below 2 months rent.
                  PAUL GIBBS, solicitor, Jacobs & Reeves. My comments on this forum are correct to the best of my knowledge and belief. No responsibility or liability is accepted by reason of reliance upon such comments. This disclaimer would not apply to direct clients of Jacobs & Reeves where there is a valid retainer in place and I would be happy to confirm any advice if formally instructed. . Jacobs & Reeves now offer a fixed fee possession service.

                  Comment


                    #10
                    Originally posted by Paul Gibbs View Post
                    Failure to protect gives T the right to claim compensation. T is entitled to argue that those damages can be offset against rent due. Such that it reduces T's liability to LL at the date of the court hearing to below 2 months rent.
                    Yes, but all LL has to do is stick in in a scheme albeit late, and T loses that defence.
                    'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

                    Comment


                      #11
                      Originally posted by mind the gap View Post
                      Yes, but all LL has to do is stick in in a scheme albeit late, and T loses that defence.
                      True, as long as LL does this. If it is not done by LL at the time of the hearing T still has a valid claim, and that will delay the possession claim.
                      PAUL GIBBS, solicitor, Jacobs & Reeves. My comments on this forum are correct to the best of my knowledge and belief. No responsibility or liability is accepted by reason of reliance upon such comments. This disclaimer would not apply to direct clients of Jacobs & Reeves where there is a valid retainer in place and I would be happy to confirm any advice if formally instructed. . Jacobs & Reeves now offer a fixed fee possession service.

                      Comment


                        #12
                        T in arrears with rent- what action can L take?

                        I'm got an unreliable tennant in my property who just pays his rent when he feels like it. He was going to be 2 full months in arrears on 24th June in which case i was going to start the eviction process but has now given me a payment which is still £280 short which he says he will sort out asap but to be honest I would rather have him out as he is just a pain.

                        Have i still got grounds to evict him ? Any advice would be gratefull

                        thanks

                        Comment


                          #13
                          If it is an AST you can serve a s21 notice giving 2 months notice to leave - providing that is not before the end of any fixed term and any deposit is protected.

                          If tenant is still in fixed term, section 8 is your only option. You can serve a section 8 on grounds 10 & 11 due to missing rent / late rent but the judge will have to make a decision if the tenants breaches are bad enough to warrant making him homeless. It is unlikely.

                          I would serve the s8 g10 & 11 on your tenant in the hope it kicks his doodah into gear, if not, he'll soon be 2 months unpaid again so you'll be able to issue the s8 g8 and take that through to court.

                          Comment


                            #14
                            Originally posted by d_83 View Post
                            He was going to be 2 full months in arrears on 24th June in which case i was going to start the eviction process but has now given me a payment which is still £280 short

                            thanks
                            Note that the condition is 2 months unpaid which is not the same as arrears - the tenant is 2 months unpaid 1 month and day after the last payment but 2 months in arrears after 2 full months.

                            Comment


                              #15
                              Originally posted by fletchj View Post
                              Note that the condition is 2 months unpaid which is not the same as arrears - the tenant is 2 months unpaid 1 month and day after the last payment but 2 months in arrears after 2 full months.
                              Sorry I dont understand that - what does the mean for me ?

                              Comment

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