3-yr. AST but tenant in arrears after only 3 mths.

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    3-yr. AST but tenant in arrears after only 3 mths.

    Hello everyone

    I hope you can help me understand my options. I have been reading all the posts on Section 21 and Section 8 etc, but I still feel unclear on what I can do.

    I have a tenant who took occupancy on 12 August 2006 on an AST for a fixed term of 3 years.

    He was several days late with September's payment, paid October's on time and now is late again with November's payment.

    I would like some advice on the best way for me to proceed at this early stage in the tenancy. I want to put the proper processes and paperwork in place that will firstly enable me to swiftly take him to court if I need to and secondly to let him know early on that I wont mess around which I am hoping will get him to 'buck up'. He is a professional (architect) and I think his main problem is cash-flow as he works independently and is building up his client base in the area. So what would you advise I do in this situation?

    Also, I have reason to believe that the accountant's reference he supplied was from a company that was liquidated a couple of months before the reference was written. If I can prove this can I get him out on the basis of a false reference?

    I have let 2 properties over 5 years and have never had any problems before, I thought taking on an architect would be a safe bet - Not!

    Thanks in advance for any replies, your help is appreciated.

    Karen

    #2
    Oh dear Karen I feel that you might have caught a cold here! Nobody, but nobody gives a tenant a 3 years AST, and you have committed yourself to a rather long period that might be arduous.

    It's up to you to do proper checks and if you let him give a you a letter on somebody's letterhead and didn't check out the company then you can see problems probably began before you let the property.

    No you won't be able to get him out for possible false information and suggest you refrain from the big stick approach so early on. Be firm but polite and keep it on a professional level.

    S.8 Ground 8 is available to you for two or more months rent arrears but it's not foolproof. There's plenty of postings on the forum and more detailed information from the home page on this site as to how to go about it.
    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.

    Comment


      #3
      Rent a few days late is annoying, but after reading other posts, it could be worse. Does he send a cheque? How about suggesting a standing order?
      All posts in good faith, but do not rely on them

      * * * * * ** * * * * * * * * * * * *

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        #4
        One of my tenants has been up to a month late with his rental payments. The gentleman is a cleric and his Church tends to forget to pay him or pay his rent. Then he pops off abroad on business an is unable to chase them to ensure his rent is paid. It isn't his fault and he has been with me now for over two years. Regrettably this sort of thing happens and you merely have to keep on top of it as well as put up with it.

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

        Comment


          #5
          Originally posted by Paul_f View Post
          Oh dear Karen I feel that you might have caught a cold here! Nobody, but nobody gives a tenant a 3 years AST, and you have committed yourself to a rather long period that might be arduous.

          It's up to you to do proper checks and if you let him give a you a letter on somebody's letterhead and didn't check out the company then you can see problems probably began before you let the property.

          No you won't be able to get him out for possible false information and suggest you refrain from the big stick approach so early on. Be firm but polite and keep it on a professional level.

          S.8 Ground 8 is available to you for two or more months rent arrears but it's not foolproof. There's plenty of postings on the forum and more detailed information from the home page on this site as to how to go about it.
          Re "false information": see ground 17 in Schedule 2 to Housing Act 1988 (added in 1996).

          If L was induced to let by T's false statement, ground for s.8 Notice.
          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
            If someone can post a link to a copy of the Housing act with Schedule 2 with ground 17 in it, I would be grateful, I can only find a copy online that goes up to ground 16!

            Thanks very much for everyone's input.

            Karen

            Comment


              #7
              Try this. It took me less than 20 seconds to find it just by putting "Section 8 Ground 17 Housing Act 1996" into my search engine.

              http://www.rla.org.uk/rla.exe?input=...S8_grounds.htm

              There's plenty of others too! Welcome to the lazy bunch!
              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.

              Comment


                #8
                Thanks for the link and all the replies.

                Well, my letting agent spoke with a barrister recently re my case and was advised that the only possible cause of action I could take is to apply for a re-possession on the grounds that his continuous late payments are causing me financial hardship. ie. I am finding it difficult to meet the mortgage payments and it could affect my credit rating etc. Luckily this isn't the case for us so I don't know how I will be able to show that. I certainly will not be missing my mortgage payments on purpose!

                I have found out that the accountants that supplied his projected earnings reference were struck off by Companies House about 2 months before the reference was applied for so that seems a bit suspicious to me. I am going to investigate that further. I also have a suspicion that the letting agent had some failings in their reference gathering process so I am going to look into that a bit more as well - I might be able to get them to contribute to the legal costs if it comes to it.

                Other than that it appears we will be stuck with this loser for 3 years.

                Thanks everyone

                Karen

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