Not paying rent under AST

[Dirty Stop Out]

Ok thanks for your help, I think I'm going to kick the 2 months in advance into touch and just hope I don't get ripped off if and when they move out.

So much red tape and unfortunately it protects the wrong people in my honest opinion.

[thesaint]

I can see your point.

So in future, if I put the 2nd month down as a deposit but use it as their last month's rent would I be ok that way?

"The last months rent" is also not really categoric, as who knows when that may become due?
If you are wanting to do this instead of taking a deposit, I would state exactly what period the "extra" payment is for.

If the tenancy starts on the 1st Jan 2014, then the tenancy agreement would state that the 2nd payment is for the rent due on the 1st May 2014.

The problem is, is that if they stay longer, then you will no longer have the security of that payment.

I tend to not take deposits, but if I do, I take the equivalent of a month and a half.
That way, I get earlier notice if the tenant is planning to get off without paying the last months rent.

Using my method, if the tenant was planning to leave and use their deposit as a rent payment, they would only pay half a months worth of rent a month before their last payment is due.

[Mrs Mug]

The law since 2007, says that any deposit has to be placed in a deposit scheme. If your tenancy agreement says that the deposit can be used to pay rent arrears, then you should be able to claim it from the deposit company.

You can no longer just keep the deposit to pay the last months rent.

[Dirty Stop Out]

I can see your point.

So in future, if I put the 2nd month down as a deposit but use it as their last month's rent would I be ok that way?

[thesaint]

I know what you are trying to do, and why you are doing it, but as your paperwork does not support it, you will have problems sooner or later.

[Dirty Stop Out]

The 2 months in advance isn't on the tenancy. it just says the rent is to be paid every calendar month. I've only just started doing this 2 months in advance thing because the last month is usually the month I don't get paid because they use it for a deposit or a bond for their next property they move into.

[thesaint]

My tenancy agreements don't actually mention Schedule 2 on them but it does say "In the event of any rent being in arrears for at least 14 days, whether expressly demanded or not, or any other breach by the tenant of the terms of this agreement, the landlord may re-enter and take possession of the premises and terminate this agreement without prejudice to his rights to recover all unpaid rent and other damages liable through any other breach of the term of this agreement."

This is a separate clause mainly to satisfy mortgage lenders. It won't suffice.
As it is, you can't evict citing a mandatory ground(8) of a Sec 8 possession claim.

The rent is due monthly, but the 2 months I ask for in advance covers their first month in the property and their last month that they live in the property after they have given notice.

Does you tenancy agreement state this, or something you have made up in your mind?

Can you elaborate on the 30 day deadline please.

You have 30 days from the point of receiving a deposit for an AST to register it with a deposit protection provider, and supply the terms and conditions, and prescribed information to the tenant.
If you fail to do so(apart from any penalties), you cannot serve a valid Sec 21 notice until the deposit is either returned, or there is an agreement to apply to the rent account.

[Dirty Stop Out]

My tenancy agreements don't actually mention Schedule 2 on them but it does say "In the event of any rent being in arrears for at least 14 days, whether expressly demanded or not, or any other breach by the tenant of the terms of this agreement, the landlord may re-enter and take possession of the premises and terminate this agreement without prejudice to his rights to recover all unpaid rent and other damages liable through any other breach of the term of this agreement."

The rent is due monthly, but the 2 months I ask for in advance covers their first month in the property and their last month that they live in the property after they have given notice.

Can you elaborate on the 30 day deadline please.

Thanks.

[thesaint]

I presume that I can't go for an eviction until the 6 month AST expires, so what can I do now?

Answer the questions asked.

[theartfullodger]

You has a £100 deposit then & you've missed the 30 day deadline. Either get written agreement to use against arrears or return to tenant (get proof) or any s21 will be invalid.

Cheers!

[Dirty Stop Out]

Thanks for the replies!

The tenancy started on the 4th Feb, I asked for 2 months rent in advance (£1000) but I only received £600 with a promise that the remaining £400 would be paid when they received their bond back from their previous landlord.

I haven't received a penny from the tenants since they moved in and I'm finding it very difficult to contact them.

I presume that I can't go for an eviction until the 6 month AST expires, so what can I do now?

[theartfullodger]

,,,,

I don't take deposits or bonds, just 2 months in advance (£1000).

...

Err.. and when was the next rent due - if 1 month (rather than 2) from start of tenancy then you DID take a deposit, the "2months" was one month rent, 1 month deposit. Read the legislation! If this is the case any S21 would be invalid until deposit returned AND tenant could sue for up to 3x deposit..

[thesaint]

Does your tenancy agreement state that you can use Scehedule 2 of the 1988 Housing Act(or words to that effect) to evict them due to rent arrears?


You say you take 2 months in advance. How frequently are the payments due
Let's say the tenancy started the 1st Jan, when would the next payment be due?

[theartfullodger]

You can issue a S8 g10 & 11 today: Add G8 when more than 2 months owing: As they presumably never paid 1st month's rent (due day 1) & also 2nd payment (due day 1month+1) they are already "owing" 2 months so that should be OK to go today.

That will expire after 14 days. So then to court. Be aware (assuming as I guess these are "professional" tenants preying on a trusting landlord) that they will defend & counterclaim on the basis of disrepair, as is their right.

Expect a fight- time, money & persistance: Sorry.

Never EVER rent out without FULL credit & reference checks including previous landlord (current one probably wanted them out) and AT LEAST one month's rent & deposit up front.

Hopefully the next ones will be better. Tenant may be viewing this thread.

[Dirty Stop Out]

Hi thanks for the reply.

I don't take deposits or bonds, just 2 months in advance (£1000).

I was paid £600 when they moved in with a promise that the remaining £400 would be paid on the return of their bond from their previous landlord.

Rent was due at the beginning of this month which hasn't been paid and still no sign of the outstanding £400 although I've had texts for the past 2 Fridays telling me the rent would be ready that day but it never has.