Change of payment terms for terrible payer?

Change of payment terms for terrible payer?

15:46 PM, 17th May 2021, About a month ago 9

Text Size

I have a tenant who is now on a periodic agreement with terms requiring monthly payment. He is a terrible payer and I would normally look to evict him, but it is not so easy at the moment.

He has just requested to move to weekly payments, and I am happy to accommodate his request. What is the best way to do this?

Do I need a new agreement, or just informally allow him to pay like this?

I don’t really want to commence a new agreement as I want to be able to get him out when restrictions allow.

Thanks for your help.

Zoe



Comments

by FOX30

9:52 AM, 18th May 2021, About a month ago

Don’t change anything, keep everything the same and deduct the weekly payments from the overall debt owed, work out the weekly by multiplying the pcm payment by 12 and then dividing it by 365, that gets you the weekly amount, stay on top of this so the tenant doesn’t accumulate too much debt and act if you need to.
I Have a similar issue starting action today !

by Andy

10:19 AM, 18th May 2021, About a month ago

Hi Zoe,

I have been in a similar situation and the tenant has never recovered and ignores all assistance I offer to try and repay arrears

If you have completed all your pre tenancy tasks and have proof of this wait until after the 1st June and then you can serve a Section 21 and give 4 months notice. Subject to when your tenancy starts in the month you may be able to serve prior to the original tenancy start date.

If they are HB then you could apply for a UC47 and see if they can pay the arrears directly off their claims, be aware my arrears were going to take 3 years to repay

I`ve taken the approach of ensuring everything is in place, provided a new tenancy for 6months ensuring everything is 100% water tight and am accepting the rent arrears may not be recovered and the day after the new tenancy started have served a Section 21

I know if I did a Section 8 that the courts would probably go with the tenant as they have proof the arrears were on a plan even though they are not paying the normal top up now so its switched and the arrears keep building

Once shes out I`ll go for a CCJ against her anyway as the arrears have mounted up but what can you do

Thanks

Andrew

by Mike T

10:55 AM, 18th May 2021, About a month ago

We had the same situation arise with a tenant a year or two ago. We agreed to temporarily receive his monthly rent in installments thus the tenancy agreement was not hanged or varied. We took the amount paid pcm x12 (= yearly amount) then divided it by 48 i.e 4 weeks in a month. Disregarded the fact that there are 52 weeks in the year. The tenant was happy with that. It also allows for a little catching up on arrears if he does make a payment every week. Or in our case the tenant has 4 weeks when he makes no payment. i.e his fortnight holiday + Xmas and NY. Hope that makes sense.

by DGM

11:10 AM, 18th May 2021, About a month ago

I have tenant who asked for weekly payment as he is paid weekly and not good with saving money for monthly rent. To date payment is every week on time and he is a good tenant.
I always try to help where I can when tenants ask for date change because the way they are paid. A happy tenant is always better than an unhappy one and looks after the property.
If the tenant is arrears do what Mike T suggests, make the weekly payment slightly higher to recoup the arrears.

by Ian Narbeth

12:27 PM, 18th May 2021, About a month ago

Do not agree to a formal change to weekly payments If you do, you will be obliged to provide a rent book and if you fail to do so you commit an offence under s7 Landlord and Tenant Act 1985 https://www.legislation.gov.uk/ukpga/1985/70#:~:text=provision%20of%20rent%20book
I would write to him on the lines of: "Your rent £X will continue to be payable monthly in advance. However, subject as follows I will accept payment of £[3X/13] [PUT ACTUAL FIGURES IN. THIS FORMULA CONVERTS THE MONTHLY FIGURE TO A WEEKLY FIGURE] weekly in advance [by standing order] every [Monday]. I may withdraw this agreement at any time without giving a reason. I will withdraw it if any payments are [paid late][more than two days late] [or if you cancel the standing order. Please confirm your agreement by replying to this [email/letter]." If there is a guarantor get them to agree as well.

by colette

21:18 PM, 18th May 2021, About a month ago

Reply to the comment left by Ian Narbeth at 18/05/2021 - 12:27
Hi Ian, are you saying that any weekly rent has to have a rent book (or indeed a monthly rent) or in this case they would have to have a rent book simply because of the change of payment from monthly due to debt. I only ask because I have a tenant whose tenancy states weekly payments and who pays weekly by Standing order.

by DGM

22:38 PM, 18th May 2021, About a month ago

Reply to the comment left by colette at 18/05/2021 - 21:18
Yes I am confused as following the link says '"a rent book or similar" so interpretation is open to what constitutes similar, can it be digital and not paper based?

by zoe

0:51 AM, 19th May 2021, About a month ago

Reply to the comment left by Ian Narbeth at 18/05/2021 - 12:27
Thanks Ian, that was really what I was looking for and makes perfect sense.

by Landlord Phil

11:30 AM, 22nd May 2021, About 4 weeks ago

In my opinion, I'd try it. If weekly payments meet the standard set out by the ast of equivalent monthly payments, no need for a change of agreement. It's their choice how they meet the requirement. How they get there is unimportant


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER