Doing a deal with a tenant who is in arrears?

Doing a deal with a tenant who is in arrears?

13:22 PM, 14th June 2017, About 7 years ago 15

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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


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Comments

Old Mrs Landlord

8:08 AM, 17th June 2017, About 7 years ago

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

If her name is not on the tenancy agreement she is not your tenant and has no legal right to be living there, let alone calling the police. However, if you have been accepting rent from her and knew that she was paying the bills but failed to include her in the tenancy, you have not put yourself in a good position morally. This has to be resolved by agreement between you and your tenant, then between him and his girlfriend.

Jonathan Clarke

18:27 PM, 17th June 2017, About 7 years ago

Reply to the comment left by "Paul Green" at "16/06/2017 - 11:18":

That`s true - some do some don`t.

In my experience 90% will come to the table to negotiate a deal - 10% won`t.

Mandy Thomson

8:57 AM, 18th June 2017, About 7 years ago

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

Hi Jay

First and foremost, if you accept ANY rent from the lady left in your property, write to her formally - and ensure you serve the letter (put in her door with a witness who has seen the letter or send by 1st class post with postage certificate). In the letter, advise her that any payment she makes toward the rent for the property is for occupation charges only, not rent and no tenancy exists between you.

Next, get your property back. If the tenancy is out of the fixed term (i.e. the period specified on tenancy agreement has ended) or 2 months before the FT ends, you should serve section 21, giving 2 months notice from the monthly anniversary of the tenancy, ending the day before this of the second month. However, be aware that section 21 can only be served if the following applies:

- the deposit was properly protected and prescribed information served on the tenant within 30 days of payment
If the current tenancy agreement is dated on or after 1 October 2015, you also need to serve the following:
-How to rent guide
- the gas safety certificate
-the EPC (in hard copy format)

Also, ensure you apply for a landlord licence if this is applicable (check with the local authority if you're unsure).

If you're in the middle of the fixed term, but there is at least 2 months rent arrears, you can issue section 8 notice, but this is more complicated than section 21 and I would advise using section 21 whenever you can, unless you have excessive rent arrears.

Either way, I also strongly suggest you join the NLA or another landlord's association if you haven't already. This will give you free access to the forms you need plus unlimited free advice from experienced landlord advisors.

jay shah

8:03 AM, 19th June 2017, About 7 years ago

Thank you Michael , it is very assuring sharing and discussing problem.
Your advice greatly appreciated.

Mike D

19:42 PM, 19th June 2017, About 7 years ago

I had a case as we speak, i've been there before, i would say issue section 21, then 'carrot & stick'
I text them (girl had moved out, leaving boyfriend in property) to say that i was issuing section 8, then 21. which gives them 2 months notice, with 2 months in arrears about £1,500. I then inquired about payment, as a forwarding payment towards the outstanding debt. I suggested leaving earlier than the 2 months so that the debt was less for them.
I reminded them that they were liable for the outstanding debt, and if no payment was made at all by Wednesday (5 days), then i would need to take legal action and ad the costs to the debt that they owed, and advised it would be around £1,200.
He has refused to talk with me, but she is now finding her share and is paying up tomorrow. Through her, they have agreed to let me have the deposit of £1,100 when they leave. As she has cooperated i've worked with her and been flexible about the payment as she got the money together.
I guess i would say be hard, see how they respond, and if there is some cooperation, then try and work with them to get an output you are happy with, not easy play it by ear

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