Section 21, interest on late payment and inventory question

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    Section 21, interest on late payment and inventory question

    Hello all, I have 3 questions I am trying to answer and wonder if you could help. We have recently got rid of a problem tenant but are now having problems with regards to their deposit. Can you answer any of the following:

    1. We got a section 21(a) notice drawn up by our solicitors and would like to charge the cost of this to the tenant. We had protected the deposit but didn't tell them the details of where it was protected until AFTER getting the section 21 notice completed. They say the notice isn't valid and won#t pay for it.

    2. I want to charge the tenant interest on late rent payments but she has asked for bank statements to prove it was late. I found an excel form online and have put her payments in that but she says it isn't evidence, its just a spreadsheet. Also what interest rate should I charge?

    3. I didn't complete an inventory when the tenant moved in. How else can I prove the tenant damaged our house and make it stick to a judge? Will a witness statement from our agent help?

    We don't want to keep the entire deposit, just what we are entitled to.

    Many thanks for reading

    #2
    A post to make you smile on a Friday.

    1. Not providing PI within the legislated time frame leaves you open to the tenant making a claim against you for the deposit plus 1 -3 times the deposit.

    2. You can charge whatever interest rate you stated in the original agreement that you and the tenant signed at the start of the tenancy. You did agree that there would be charges for late payment didn't you? If not just say 1000% APR, you won't stand a chance of getting it so may as well have a hilariously large figure.

    3. Why not? Your case is very weak. I doubt a witness statement will help when you don't have proof of a starting point that was agreed by all parties at the start of the tenancy.
    "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

    What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

    Comment


      #3
      Cheers for the replies. I thought that would be the case with regards to 2 and 3. The renewed the tenancy part way through and the first agreement didn't have a rate set.

      Can I still charge them for the Section 21 notice though?

      Comment


        #4
        Originally posted by MattMatt72 View Post
        Can I still charge them for the Section 21 notice though?
        No, you can't.

        Comment


          #5
          Sorry, I should say I have never had problems like these with a tenant before.

          Should I provide a bank statement to them to prove they were late? I guess I would have to provide one to the court.

          Also I think I may be better off getting legal advice. Can anyone recommend one in my area of Henley on Thames?

          Comment


            #6
            They would know they were late surely? Rent due on X they paid on Y. I can't see why you have to prove it to them when they were the ones paying it. I can't see why the late payment of rent is an issue now anyway as as you have already said you've 'got rid of them'. Is it you wanting to take them to court or them you?
            "I'm afraid I didn't do enough background checks apart from checking her identity on Facebook" - ANON

            What I say is based on my own experience and research - Please don't take as gospel without first checking the gospel yourself.

            Comment


              #7
              MattMatt72 - if there is a dispute regarding the deposit, you can't just unilaterally decide what you are entitled to. Those days are long gone. You are at complete fault for not completing, and getting agreed / signed, an Inventory. Without that you really have little left to back up your case. This is the whole reason for doing these ball-ache Inventories - to protect yourself (and, indeed, the Tenant) when the tenancy comes to an end. Without an Inventory you are really going to struggle. On the plus side - you will probably never make this same mistake again.

              Be very wary of charging interest on late payments - for it to mean anything to you, it would have to be a really high rental amount or a really high interest rate or have been late for ages... otherwise, it's just pennies that you're talking about... here's a basic example...

              Rental amount of, say, £500 per month.
              APR of, say, 5%.
              Rental lateness of, say, 10 days...

              This would give you a grand total amount of 68p... or about 7p per day. Sure, it keeps going up, but is it worth chasing? To make it interesting, you might need a rent of £1,000 an APR of 20% and a lateness of 100 days... still only £50, though.

              Is that what you expected? What are your figures like for the interest you want to ask the Tenant for? I hope that helps you somewhat.

              P.S. - on 1, be really careful about poking a hornet's nest, as Wannadonnadoodah says, your Section 21 wasn't valid and you should feel lucky the Tenant has gone... if they decided not to, they could have stayed, because your Section 21 wasn't valid - but more importantly - you have left yourself open to being sued. Let's hope the Tenant isn't doing research of their own right now.

              Comment


                #8
                If you are confident they paid late then serve s8 g10 or 11 and evict for that: that's what HA 1988 s7, s8 & schedule 2 are for.

                Charging for an s21 being done by a solicitor when you could have done it yourself for free? Yes you can send them a bill but I cannot imagine any judge or deposit adjudicator allowing it.

                Cheers!
                I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                Comment


                  #9
                  It seems the Tenant is already gone... from the property, but not from the mind?

                  Comment

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