Rent arrears

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Rent arrears

    I have a tenant made regular rent payments for a year and then suddenly said he could no longer afford the rent. I said he could pay a lesser amount on account, until his circumstances improved, provided the payments were still made every month. That went OK for nine months, (though I allowed him to change his payment date a couple of times) but in April he stopped paying altogether. I went to see him at the beginning of August and he gave me a month's notice to end the tenancy. A fortnight later he asked me if he could withdraw his notice and he made a payment of just over a month's rent. He suggested he would start regular payments again and volunteered to pay a further month's rent on 9th August. That payment did not come.

    I have always had a cordial relationship with the tenant, having maintained the property promptly, he says he is delighted to be living there and that I have been "very good" to him. However, I now worry that I may have allowed too much. I have tried to ring the tenant for the last few days and he is not answering my calls. I think he now owes me two and a half months' rent at the rate specified in the tenancy agreement, plus the shortfall due to the reduced amounts paid for a year that I intended as a temporary measure.

    Have I compromised my position on rent owed and should I do something else now or wait for notice to expire next month ?

    #2
    Is this an AST/SAT? If so, have you served on T any Housing Act 1988 Notices (under s.8 [or s.21- AST only])?
    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


      #3
      This is an AST that we have allowed to continue after the initial six month term and which is now periodic. I have served no notices on the tenant but have acknowledged the notice he gave to me.

      Comment


        #4
        Originally posted by Direct View Post
        I now worry that I may have allowed too much
        You are right to worry.
        I think he now owes me two and a half months' rent at the rate specified in the tenancy agreement, plus the shortfall due to the reduced amounts paid for a year that I intended as a temporary measure.

        Have I compromised my position on rent owed and should I do something else now or wait for notice to expire next month ?

        Serve a S8 grounds 8/10/11 immediately, after 14 days you can start proceedings to repossess. Do not listen to excuses and certainly do not compromise your own position by lowering the rent again. If he sees you as an easy mark then he will take advantage.

        Give him a schedule of rents paid so far, include the short amounts from last year. If he reduces the rent below two months owing before the court date the ground 8 will fail but you can carry on on grounds 10/11 although these are discretionary and the judge may not grant possession on those alone.

        See thousands of threads on this site about S8's by searching.
        I offer no guarantee that anything I say is correct. wysiwyg

        Comment


          #5
          Originally posted by Direct View Post
          This is an AST that we have allowed to continue after the initial six month term and which is now periodic. I have served no notices on the tenant but have acknowledged the notice he gave to me.
          T's Notice To Quit cannot be unilaterally withdrawn- only if you as L agree (and you don't have to!)
          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
            @jta

            [QUOTE=jta;237699]Serve a S8 grounds 8/10/11 immediately, after 14 days you can start proceedings to repossess/QUOTE]

            Thanks for the advice.

            So are there reasons why I would want to file a S8 even though I have received notice from the tenant that will expire in just over two weeks' time? Does the notice given by the tenant on its own allow me to claim possession through the court on the on the day it expires?

            Comment


              #7
              @Direct
              You can proceed with the S.8 because the rent is over 8 weeks, making it a mandatory ground for gaining repossession.

              We’d also suggest serving a S.21 notice too – as long as your deposit is in one of the protected government schemes.

              Paul
              Landlord Action | Founder
              LandlordAction.co.uk

              Comment


                #8
                Paul, are you saying the notice that the tenant has given me doesn't do me any good so I need to do s8 and s21 anyway?

                Comment


                  #9
                  In this case, I personally think it would be a good idea to serve both notices.
                  - S8 for the arrears.
                  - S21 to give notice to end the tenancy.

                  I suggested this just for you to be safe. We often hear a lot of excuses from tenants but, as JTA mentioned above, you should stop listening to them. Serve the notices quickly (both of them) so that you are in a stronger position and, hopefully, keep the arrears to a minimum.

                  Paul
                  Landlord Action | Founder
                  LandlordAction.co.uk

                  Comment


                    #10
                    Originally posted by Paul Shamplina View Post
                    S8 for the arrears.
                    So far as concerns rent payable weekly/fortnightly/monthly, 'arrears' is wrong.
                    Ground 8 speaks of 'unpaid'. This is not the same thing!
                    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


                      #11
                      You would be wise to serve the notices, they will cost you virtually nothing and if he does not move out they will be at least part expired, enabling you to take action that much sooner if you have to.
                      I offer no guarantee that anything I say is correct. wysiwyg

                      Comment


                        #12
                        As I understand it S8 gives 14 days' notice of court action. However, as the tenant has previously given notice that expires in just over two weeks' time, would I be in any danger of delaying possession by issuing S21, since that requires two months' notice?

                        Comment


                          #13
                          Originally posted by Paul Shamplina View Post
                          Paul
                          Landlord Action | Founder
                          LandlordAction.co.uk
                          Paul, before you start advertising your wares here I suggest you talk to LLZ administration.
                          I offer no guarantee that anything I say is correct. wysiwyg

                          Comment


                            #14
                            Direct: Although your tenant has given you notice, it does not mean that he will leave after the notice date, and if he doesn't, he probably knows that you can not just throw him out. The only way to get rid of a tenant who does not leave voluntarily is via section 8 or section 21 of the 1988 Housing Act.

                            What you may not realise is that, so long as you don't agree to rescind his notice, you can legally charge double rent for any time he stays over the notice period. Of course, if he has little money/assets, your chances of getting the £s is slim - but if you don't claim it, you won't get it.

                            A section 8 possession claim can also result in a court order for the tenant to pay any missing rent (including the 'double' rent).

                            Comment


                              #15
                              Originally posted by jta View Post
                              Paul, before you start advertising your wares here I suggest you talk to LLZ administration.
                              Landlord Action *is* a paid advertiser on this site; they advertise on the side strips.

                              Comment

                              Latest Activity

                              Collapse

                              Working...
                              X