Doing a deal with a tenant who is in arrears?

by Readers Question

13:22 PM, 14th June 2017
About A year ago

Doing a deal with a tenant who is in arrears?

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Doing a deal with a tenant who is in arrears?

We have a tenant who, as of today, owes almost £2000 in rent.

He has been on a monthly periodic tenancy since the end of his six month AST.

Payment has been erratic, but with reminders, he had been keeping up until a few months ago.

We could serve him with two months notice (presumably this must be two months from the end of a rental period?) which I’m pretty certain would drag on and end up with the need for a court order and bailiffs and still no rent paid or, is there a way of offering some sort of deal whereby we say that if he moves out by a certain date (would he have to give one months notice if we were willing to accept less?), without causing damage to the property, we would waive the monies owed?

Any advice would be much appreciated.

Bridget



Comments

Neil Patterson

13:25 PM, 14th June 2017
About A year ago

Hi Bridget,

Better than a hand shake we have a Tenancy Surrender agreement.

Under our legal tab Please see >> https://www.property118.com/surrender-tenancy-agreement/67939/

Lucy Fryer

9:52 AM, 15th June 2017
About A year ago

Hi Bridget
It sounds a bit to me as if the tenant is accustomed to successfully stringing you along. I think you need to issue a Section 21, whereby you don't need to give any reason to evict. (If you issue one of the other eviction notices on grounds of non-payment then if he pays I think you may have to start again...? And it's easier for the tenant to argue the toss in court. Check with others more knowledgeable than me on that one!). The point is there's no arguing with a Section 21. Yes, you have to wait 2 months.

BUT say something along the lines of "I am now serving you with a Section 21 notice, since I need to cover my back." (Make sure you do it properly!! And don't accept pleas that he will pay - because he'll pay now and then fail to pay again in the future). Then add "If you fail to pay rent arrears, or fail to leave the flat BY the appointed date, I will have to take you to court and we will then both have a nasty time for some time to come. However, I am also now giving you the opportunity to sign a "Tenancy Surrender" agreement. If you sign this and leave within x number of days/weeks, I will waive your outstanding rent."

That way, you will minimise your losses. You avoid the hassle (and expense) of court proceedings. And at least some of your losses can hopefully be covered by the deposit.

I'm afraid that I'm no expert. the NLA (National Landlords' Association) advice line is great. As is that for the RLA. Good luck.

Dougalbid Shersby

10:16 AM, 15th June 2017
About A year ago

Reply to the comment left by "Neil Patterson" at "14/06/2017 - 13:25":

I like the sound of this. Thank you, I will investigate further.

Dougalbid Shersby

10:21 AM, 15th June 2017
About A year ago

Reply to the comment left by "Lucy Fryer" at "15/06/2017 - 09:52":

So a Section 21 notice and a surrender document (if he agrees)? That sounds like a very good idea.The tenancy is pre October 2015 so I think I need the old style s 21 notice?

Paul Green

13:14 PM, 15th June 2017
About A year ago

Write to the tenant explaining he will have to settle in full, in 48hrs or face eviction. If no money is forthcoming Contact a solicitor and have a section 21 and section 8 issued. If he states paying, you have the S21 t full back on. Have no more contact with the tenant after the final demand, abs explain there's no going back once legal action begins. You'll have possession in approximately 5 months, and the judge will award you his deposit in full. End of...move on. Experience learnt for future, making you more confident...don't waste any time. Draft the final demand today and hand post or send by recorded delivery. Don't get involved emotionally, detach yourself from the issue and let the law, courts & bailiffs handle every thing. On the final day change all the locks and relet.....

Paul Green

13:15 PM, 15th June 2017
About A year ago

Write a letter asking for full payment in 48 hours or face eviction then Have no more contact with the tenant after the final demand, and explain there's no going back once legal action begins. Ask a solicitor to Issue a S21 & S8 to cover yourself if he makes an ad hoc payment. You'll have possession in approximately 5 months, and the judge will award you his deposit in full. End of...move on. Experience learnt for future, making you more confident...don't waste any time. Draft the final demand today and hand post or send by recorded delivery. Don't get involved emotionally, detach yourself from the issue and let the law, courts & bailiffs handle every thing. On the final day change all the locks and relet.....

Jonathan Clarke

2:10 AM, 16th June 2017
About A year ago

Yes offer a deal - Everything is negotiable. I do this routinely when required. Legal action has its place but under our adversarial system its is often very limiting being frustratingly slow and expensive.

Tenants will leave by the weekend if the right incentive is there for them. I`ve used my interpersonal skills to resolve the conclusion of a tenancy on many an occasion and it works for both sides if approached in the right manner.
.

jay shah

9:12 AM, 16th June 2017
About A year ago

Great idea.
Please advise., my tenant have split up. I am left with a single mum on low income. Boyfriend the main bread earner has walked out. Tenancy was in his name only. Deposit was paid by him and registered in his name. He wants it back. Girlfriend is still there , can't afford to pay rent , wants half the deposit back. Threatened to call police. What do I do. Council tax and water is in her name. She has paid from month two . They both moved in together but she wanted bills in her name. I want her out but legally it us long and expensive process. Pl help on your incentive base process.

Paul Green

11:18 AM, 16th June 2017
About A year ago

Reply to the comment left by "Jonathan Clarke" at "16/06/2017 - 02:10":

Believe me some tenants don't comprise.

Michael Barnes

0:14 AM, 17th June 2017
About A year ago

Reply to the comment left by "jay shah" at "16/06/2017 - 09:12":

No deposit is returnable until the tenancy has ended and vacant possession obtained.

Tell the guy this.

Deposit (less deductions) goes to the person in whose name it is registered.

If it is a periodic tenancy, then the guy can serve notice to end the tenancy for both.

Until the tenancy is ended, the guy is responsible for paying you the rent: you can pursue him through the court for that.

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