Not paying rent under AST

[Dirty Stop Out]

Morning guys, I may have fallen foul to some non payers.

I received an application from a couple wanting one of my houses.

I ran a credit check on them, which came back clear, so I gave them the go ahead.

They told me that the upfront payment could only be made once they had received their bond back from their last landlord, so me being a nice guy gave them the keys.

It's now been 6 weeks and I still haven't been paid a penny.

Can I give them their marching orders even though the AST is still in effect?

Thanks in advance for any help or advise.

[Lawcruncher]

In short, no.

[Grrr]

Slightly longer answer...

No - not yet.

How long is the fixed term for? You can issue a s21 notice to expire after the fixed term is over, but a court won't entertain that until they have been in residence for 6 months or more. Even with no rent paid.

But, as soon as they are in arrears by 2 months or more you can issue a s8 for non payment of rent.

Sounds like theres no deposit, so no protection to worry about?

Have you really had no money at all? No deposit and no rent?

[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.

[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.

[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]

,,,,

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..

[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]

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!

[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.

[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]

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]

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]

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]

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?