What compensation should I offer when tenant 3 months in arrears?

by Readers Question

16:38 PM, 16th March 2016
About 4 years ago

What compensation should I offer when tenant 3 months in arrears?

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What compensation should I offer when tenant 3 months in arrears?

I was looking for some guidelines with regards to compensation of tenants whilst a property had issues.compensation

So for 3 months while we were sorting out leaks and electrical issues how should I compensate a tenant.

Would it for instance be a case of taking a percentage of the property which was not usable and using this to calculate any compensation sum.

The issues were Leaking Conservatory roof – now fixed Electric lighting switch failure – now fixed Dishwasher and toilet flush plumbing issue – now fixed

The only room unavailable was the conservatory for 3 months.

However the tenants are keen not to pay any rent whilst these issues were ongoing and are now 3 months in arrears!

As a compensation sum for the period I wanted to offer a kickback as a gesture of goodwill but am unsure if there are any guidelines on calculating this sum.

They have also requested a reduction in the monthly rent going forward to reflect the inconvenience.

Any advice would be appreciated.

Paul



Comments

Gary Dully

3:06 AM, 21st March 2016
About 4 years ago

I was in a similar position about 10 years ago and was advised to do the.eviction myself.

The reasoning was that if I was to do property in the long term, I would have to learn sooner or later what was involved.

So I registered for PCOL and MCOL on the government gateway.

(You have 2 potential targets of the tenant and if applicable the guarantor.)

I usually target both, others on this forum chase the guarantor later, but I like to make both parties suffer in the court room at the same time.

Make sure they have both had late rent warning letters and that you can prove it.

The form filling starts with the Section 8 and Section 21 notice.
The dates are critical on both, but more so with a section 21 notice.

(If you are successful with the section 8 route, the courts can award you the rent outstanding as part of the notice.)

There are examples of a correctly filled out section 8 on the internet.
Also the courts websites offer a PDF that can be filled in and then printed or saved.

The cost last time I used PCOL was £250 plus the time to study the form and learn.
(The costs with outside companies tend to be a lot higher).

I can't comment on a Section 21 hearing, as it is a long time since I have used one.

I would issue a notice on grounds 8,10 & 11 and this has to be placed on the section 8 notice and the legal transcript of the housing act is placed further in the notice.
The section 8 and 21 notice has been recently changed, so make sure you use the correct version.

You must only claim for overdue rent via section 8, do not include extra admin charges for late payment or section 8 notices etc or your claim can be thrown out for breaching CPR (Civil Procedure Rules).

(The court fee will be added by the system as you apply later in the process).

Serve the notice and make sure it is witnessed or signed for as being served.
Remember to follow the CPR rules or your case can be defeated by the free solicitor the tenant will be offered access to.

If you haven't got your rent at the expiration of the notice, (2 weeks), issue proceedings against the tenant and if applicable the guarantor.

Prepare for the court hearing.

Make sure you issue an up to date statement to all parties within 7 days of issuing the court proceedings and have it recorded as doing so.

The court will ask to see the section 8, proof of service, proof of arrears, proof of warning letters, the tenancy agreement if there is one and the workings that arrived at your claim value.

If there is a defense of disrepair, you will need proof of completion of works, i.e. Builders receipts, photos Etc.

If the tenants are still over 2 months arrears, they should grant you possession without too much quibbling.

If they offer a defense, you should have been warned beforehand what it is.
Repossession hearings that are for rent arrears appear to be an event for how good a liar a tenant or their solicitor can be on the day.

Don't expect to come out a hero, because you won't, you are only after legal possession back and a CCJ for your arrears.

Your current tenants are not interested in the repairs, they are prepared to be "Bummers" and scam artists to suit their own greed, you should be prepared for them trying to make you look disreputable, that's what a "Bummer" would do.

This process could take months, so brace yourself, if you don't get your rent in 2 weeks time, it's unlikely that you will ever see it, without Court Action.

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