Late and inconsistent payment for rent!

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    Late and inconsistent payment for rent!

    Hi everyone.
    I need a bit of advice.
    I have a tenant who owes me rent and inconsistently late of paying rent on time. AST agreement started on Aug 16 and will finish on Aug 18 (I know it's a long time but it's my first time!). I did not put deposit in scheme thus was given a letter by their solicitor without warning asking for x3 deposit plus deposit. Managed to negotiate x1.5 plus deposit. Lesson learnt so carried on normal. Tenant requested works to be done, which was completed such as electric shower replaced, fuses changed, new back gate replaced, etc. Tenant requested new job as boiler is apparently old and wasting gas??
    Anyway, rent is £595 pcm on 1st each month which £350 only paid in May. June is paid but no rent on 01/07 for July. I have whatsapp messages for dates that the tenant will be pay not honoured yet for the outstanding sum. Now ignoring my calls/whatapp and it is really frustrating.

    What can I do? Can I serve a section 8 on these grounds?

    Many thanks.

    Edit - Just looked at my AST agreement. Looks like i can pay interest 4% above the base lending rate of Barclays Bank which is more than 14 days in arrears in respect of the date from when it became due to the date of payment - which I haven't done. Can I claim this through courts?

    #2
    a) In future, 6 months max
    b) Does your tenancy permit use of s8 during fixed term?
    c) Does tenancy state rent payable weekly, monthly, 4-weekly??

    Nothing to stop you serving s8 g10&11. Highly unlikely to get a PO that way. But I'd still serve & also start MCoL - today!

    You can try for the 4% but it's likely to be challenged - do you want eviction/getting the money or do you want a long-drawn out court case?
    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


      #3
      Originally posted by rkc86 View Post
      Edit - Just looked at my AST agreement. Looks like i can pay interest 4% above the base lending rate of Barclays Bank which is more than 14 days in arrears in respect of the date from when it became due to the date of payment - which I haven't done. Can I claim this through courts?
      Yes, no problem with this. It shouldn't cause a "long drawn-out court case" as that's quite a standard clause and claim.

      Comment


        #4
        a) Yeh, I will do future. If the same tenant wishes to stay after 6 months, do I make a new AST agreement or use existing one & extend it? Do I leave deposit as it is or give deposit back and put back in scheme again?
        b) Yeh I think so. I've downloaded a template of the NLA National Landlords Assocation website.
        c) Tenancy states monthly.

        What's a PO and what is MCol?

        I don't think I bother with the 4%. I should have emphasised with tenant at first when she was late with payment. I probably want her out! She probably wants the same but not responding back to me. I'm scared she might wreck the place as she has her deposit back!

        Comment


          #5
          I'd not even think about renewing for a late-payer.

          Even if perfect payer, let it become periodic: More incentive for tenant to stick to contract terms, more flexibility for landlord to evict.

          PO - Possession order
          MCoL -
          https://www.gov.uk/make-money-claim-online

          With respect suggest you get educated: Do a NLA or RLA landlord introduction: It will save you more money and time than it costs you...
          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


            #6
            Originally posted by rkc86 View Post
            I don't think I bother with the 4%.
            There is no reason not to claim interests on a debt when you go to court.

            It's literally one line on the claim form, it does not cost you anything, and you won't get it if you don't claim it.

            Comment


              #7
              Can I serve a section 8 under ground 8? Although the total is not 2 months of rent, the outstanding sum is from 2 months ago? Surely the tenant cannot delay that long?

              Comment


                #8
                It's not when, it's how much.

                Both at the date of the service of the notice under section 8 of this Act relating to the proceedings for possession and at the date of the hearing—
                (b)if rent is payable monthly, at least two months' rent is unpaid;
                Your tenancy agreement must also allow you to issue the notice under that ground.
                I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

                I do not answer questions through private messages which should be posted publicly on the forum.

                Comment


                  #9
                  AST agreement started on Aug 16 and will finish on Aug 18
                  That doesn't sound right.
                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment


                    #10
                    Think he means Aug 2016 ends Aug 2018 - well, that's how I read it... (bad idea...)
                    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


                      #11
                      Yes you are entitled to serve a section 8 notice and if the arrears are in excess of 2 months you would be able to rely on ground 8 of schedule 2 of Housing Act 1988. If the arrears are not in excess of 2 months then you would be able to rely of ground 10 schedule 2, plus if the tenant is consistently late, you'll be able to rely on ground 11 too. Noncompliance with the deposit protection provisions or late protection (under the presumption that you protected the deposit later than 30 days of the tenancy agreement) would not disentitle you to apply for possession order and/or judgement for the rent arrears balance.

                      Moreover, you are also entitle to contractual interest based on your tenancy agreement's interest clause.

                      in relation to your negotiation with tenant's solicitor, in respect of noncompliance of the deposit protection provision, because it is your first offence and you were not aware of the compulsory nature of the compliance of protection's provisions generally the court would order the return of the deposit and perhaps up to 1x of the deposit figures. 3x is the maximum penalty which the court in very rare circumstances would impose.

                      Comment


                        #12
                        See Housing Act 1988 s7(6)
                        http://www.legislation.gov.uk/ukpga/1988/50/section/7
                        says you are only entitled to use g8 or 10 or 11 during fixed term if it is expressly permitted in the tenancy.
                        (6)The court shall not make an order for possession of a dwelling-house to take effect at a time when it is let on an assured fixed term tenancy unless—

                        (a)the ground for possession is Ground 2[F8, Ground 7A] [F9 , Ground 7B] or Ground 8 in Part I of Schedule 2 to this Act or any of the grounds in Part II of that Schedule, other than Ground 9 or Ground 16; and

                        (b)the terms of the tenancy make provision for it to be brought to an end on the ground in question (whether that provision takes the form of a provision for re-entry, for forfeiture, for determination by notice or otherwise).
                        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


                          #13
                          Statutory interest is 8% so might be more than you are asking for. The judge might well ask you if there is anything else you want to claim for - I always take this as a hint that I've missed something off my claim. If you don't ask for interest to be added this is what the judge might ask. Always ask for interest. After all, would you really give an interest free loan to somebody you hardly know?

                          My tenancy agreement says 21% - it's worth a try if things go to court, but one judge said I could only have statory interest at 8% as I'm not a lending institution. So I calculate both 21% and 8% on the debt and take both to court so if 21% is refused I've got the 8% ready. Judges won't hang around while you recalculate a compound interest.

                          Comment


                            #14
                            You've been lucky - 21% is punitive and the judge could chuck out any interest claim as a consequence.
                            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                            Comment

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