What action should be taken – section 21 or not for £200 arrears

What action should be taken – section 21 or not for £200 arrears

11:28 AM, 2nd December 2014, About 10 years ago 19

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I’m a landlord with two BTL, which are well maintained and let at £20 less than market rent. House number two has been let to a couple with a young child since day 1 back in May 2012.

They are long term tenants who have maintained the house and generally open to communication. Rent has been paid promptly except in a couple of occasions where they have contacted me in advance and I’ve accommodated late payment (up to a week).

Problem arose in July this year I check my account in September to see that rent had been paid but it was £200 short.I contacted the tenant who told me his wife had made the full payment but he would speak to her and come back to me. To his credit he texted to say I was right and he would sort it. He didn’t.

I then spoke to the tenant close to bonfire night was told payment would be made the next Friday (work was a bit slow). Then spoke to tenant again near end of Nov and was told he would pay it with the rent. Rent has been paid in full and on time except the £200. I have emailed stating it is due and if they have difficulties paying they need to contact me so I can help them with a solution- no reply to my email or my recent text informing I only received the rent not the shortfall.

I don’t like being put in a position where I am chasing for rent. As the monthly rent is £450 the sum isn’t enough to serve a s21? However I don’t want to evict them. I merely want to receive payment. The tenancy expires may 2015 and at this stage I am seriously considering whether or not to renew the tenancy.

What would you do I my situation ?

Tazcash


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Comments

Jonathan Clarke

23:12 PM, 3rd December 2014, About 10 years ago

Taz

Appreciate this is the first time this has happened to you but this is really bread and butter stuff for landlords - Your interpersonal skills should come to the fore now. Take a deep breath. Forget e mail letters and text for the time being. Go knock on the door have a conversation with them. People in debt bury their head and hope it will go away. They want an escape route same as you. £200 now before Christmas maybe too much for them. £20 a month though starting 1st Feb might appeal as a good compromise solution for you both . You then keep a tenant and they think you are great. Win win

Paul

9:50 AM, 6th December 2014, About 9 years ago

Go and see the tenant. Sit down, talk to them. Don't make any agreements (unless you have to when you are with them), then go away and think about it.

Thinks are much easier to talk to the tenant face to face.

I've been known to let a tenant work the money off by carrying out works to the property - as long as they are competent.

£200 over 2 years isn't the end all... Just don't let it slip further !

Neil Robb

15:02 PM, 6th December 2014, About 9 years ago

Hi Taz

It is not easy trying to be firm and fair but at the end of the day. They need to pay the rent that's due.

I have a property which is let by an agent. The tenant has been there for a few years. This year she fell behind two months rent. I spoke to her tried to help but pointed out that it is important rent be paid . I asked the agents what they did about this was told they could not get a hold of tenant. Three months rent due no payment. I instructed agent to serve notice as last resort. His answer she would be put out of house at Christmas. My answer if I don't pay my bills I would be in trouble. We managed to get payment last month but no payment this month. So now 4 months no rent you can not always be nice.

I now feel I have no option other then to evict the tenant.

For two hundred pound and a good tenant one month void will cost you more. work out a repayment plan then make sure they realise you can accept the rent being paid short.

Colin Dartnell

16:57 PM, 6th December 2014, About 9 years ago

Just live with it, try to get a bit extra each month, so long as they keep paying the rent you're in a good position, and you still have the deposit. Better the devil you know.

Tabraz Khan

21:02 PM, 5th February 2015, About 9 years ago

Thought I should provide an update. Whilst I was debating what action to take about this static arrear of £200 Decembers rent wasn't paid. Was told that one of the tenant wasn't paid and had to wait till she went back to work in Jan to resolve. I went out mid January had a discussion asked them if there was a problem was assured at the end of the month the whole balance would be sorted. I also hand delivered a s21 during this visit.

Short version received 650 which is 200 static plus December rent but no normal payment of 450 which I was expecting at end of January.

From memory (from my housing officer days) I can't serve a s8 until they have 2 month arrears there is another section for persistent arrears but that ground is discretionary. Tenants numbers are dead and my only source of communication is WhatsApp (i live 20 miles from the property).

Advice?

ashley nissim

9:52 AM, 6th February 2015, About 9 years ago

Reply to the comment left by "Taz " at "05/02/2015 - 21:02":

In my experience tenants fall into two catagories when it comes to rent arrears.

The 1st is the unfortunate tenant that is honest about their situation and wants to put it right. This one is very easy to spot because they will usually contact you to explain their situation in advance rather than leave you to find a shortfall in your bank account. These tenants invariably stay in contact and stick to any agreement regarding how to catch up with their rent. Try to hold onto them if at all possible & give them a chance as long as they remain upfront and communicative.

The 2nd is the tenant that is going to take advantage of any good nature that you show. The pattern is very much as you have described. The rent is paid short & they claim that it is a surprise that it hasn't been paid. Invariably, the rent is paid by standing order so they probably phoned their bank to cancel it. They then say that there was a problem with getting paid, but it will be sorted out at the end of the month. At the end of the month something appears, but not what you were promised. You then end up in a circle of lies & excuses because they don't realize that if they dealt with things honestly you would be more open to finding a workable solution.

After allowing myself to be dragged into months & sometimes years of 'tenant 2' in the past, I have now learnt that as soon as I spot a hint of a lie I serve a S21 notice and see it through to the end regardless. I don't bother with S8's because they take longer, can be delayed by irregular rent payments, and you never see the money anyway.

Work with your honest tenants, evict your dishonest ones. Once I learnt this lesson I saved myself so much hassle chasing payments that never came. The cost of eviction & finding a new tenant is worth the peace.

Good luck whatever you decide.

edward Cain

12:10 PM, 4th May 2015, About 9 years ago

What grounds do I need to serve section 21

Neil Robb

15:34 PM, 4th May 2015, About 9 years ago

Edward You just say you need your property back as you are looking to restructure your portfolio.

Tabraz Khan

18:57 PM, 4th May 2015, About 9 years ago

You do not need any ground to issue a section 21 notice as long as the dates etc on the notice are correct

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