Calculating rent arrears when dealing with partial payments

Calculating rent arrears when dealing with partial payments

15:57 PM, 28th January 2014, About 9 years ago 15

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How do I work out when a tenant hits the ‘2 months arrears’ threshold that allows for the serving of a section 8 notice citing ground 8 “substantial areas?

Consider an AST requiring a monthly rent payable in advance on the 1st of every month.

Lets say the rent is £800 and up till now the tenant is up-to-date on payments. Calculating rent arrears when dealing with partial payments

If he fails to pay any rent on the 1st of Jan, then he is officially ‘1 month in arrears’ even on the 2nd Jan (i.e. only actually one day late).

If he also misses his payment on the 1st of Feb he’s now two months in arrears and as such a section 8 ground 8 could be served, even if it’s only a month and a day since he missed his first payment.

So whats the situation if he pays £400 on the 1st of Feb (i.e. half the monthly rent) at what point is he now 2 months in arrears?

Does the landlord have to wait until the next rent day 1st March before serving a section 8 or can rent be calculated on a pro-rata basis allowing the section 8 notice to be served in the middle of Feb?

Thanks

Lima7



Comments

Ray Davison

20:12 PM, 28th January 2014, About 9 years ago

Reply to the comment left by "Industry Observer " at "28/01/2014 - 19:56":

Sorry,this does not make any sense to me. Can you please clarify what you are attmepting to tell us.

Industry Observer

20:32 PM, 28th January 2014, About 9 years ago

Don't see what you need clarifying Ray.

What we are all saying is that rent due is in arrear the day after it falls due - if not paid!!

Whether you can then serve a section 8 notice depends on whether what total arrears you then have by adding that latest payment due to any previous months arrears still o/s.

Ray Davison

20:36 PM, 28th January 2014, About 9 years ago

I agree that was clearly stated in a number of complimentary ways what I do not understand is what your last two comments meant and what they were trying to achieve.

Industry Observer

21:05 PM, 28th January 2014, About 9 years ago

Ray

If you still don't understand any of my comments tell me specifically by time posted and I'll try to do better!!

Sam Zawadzki

12:14 PM, 29th January 2014, About 9 years ago

Are you dead set on removing the tenant? Is there the option to help them reduce the arrears and monitor payments more closely? Perhaps setting up an invoice every month 6 days before rent is due?

All the best, S

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