I’m not a charity: Is it time to issue a Section 21?
Hi, I’ve been a landlord since 2005 and I’ve never issued a Section 21. However, I’m about to change that as I have two tenants that are behind in rent payments,one owes £600.00 and the other owes £2,500.00.
In my efforts to be reasonable I have agreed payment plans for both of these tenants. The one owing £600.00 does make a regular payment to reduce the debt.
The other tenant is now unable to work and has been in touch with social services to increase her benefits to pay rent but the debt is not reducing.
The social workers are now questioning me about the payment plan that I set up and why I’ve charged this troubsome tenant interest of 10% on the amount of unpaid rent. I’ve been made out to be the villain in this situation, a situation not of my making.
I’m not a charity and I’ve had enough of the aggression from the social workers wanting to know about my finances and why I’ve charged interest on the unpaid rent.
I’ve never issued a section 21 and always tried to help tenants when they fall behind in their payment, but I’m about to change that helpful nature and I want this tenant out.
Do any Property118 readers have any advice on how to handle this situtation?
Thanks.
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Member Since April 2024 - Comments: 8
4:42 PM, 4th July 2024, About 2 years ago
As others have said the interest being charged is extortion so I would use the actual owed rent as your base line. I have dealt with social workers and they will utilise everything in their arsenal to keep the tenant in your property. If the tenant is 2 months in arrears when you remove the interest issue a section 8 on the basis of rent arrears, but pay a solicitor to deal with it. Then the social worker will deal with them and your back is covered legally. It’s likely social services will cover the arrears to bring the tenant back to 1 month in arrears so as soon as she falls below this again immediately reissue a section 8. All legal fees are tax deductions.
Member Since March 2023 - Comments: 37
4:51 PM, 4th July 2024, About 2 years ago
Reply to the comment left by Elo at 04/07/2024 – 16:42
I am curious why the tenant has social workers, they usually only get involved if the tenant is disabled or falls into a vulnerable classification.
If she is disabled or classed as vulnerable she will have enhanced protection in law due to the 2010 Disability Act .
You can follow the letter of the law and the correct procedure and a judge will still refuse a eviction notice .
My own experience of dealing with a tenant who became disabled was a very long and expensive process and I had to engage a lawyer with knowledge of the Disability Act and how it affects a tenancy.
If she has a social worker then she will either be disabled or fall into the vulnerable section. Go and see a specialist lawyer before you disappear down the rabbit hole .
Member Since July 2024 - Comments: 4
5:15 PM, 4th July 2024, About 2 years ago
Firstly, you should be serving section 8 and not S21. The interest rate should be same as the Bank of England that is 5.25% and only after you have given a letter of essence that is a warning to pay the full fees.
Anyways its good that you have given them a payment plan. It is responsibility of the tenant to ensure the rent has been paid and should check all the time. I have been managing 60 properties and most of the ones in arrears are now being cleared.
Member Since June 2013 - Comments: 1121
5:22 PM, 4th July 2024, About 2 years ago
When in a hole stop digging. Get some decent legal advice or use someone like Landlord Action. Do not try and evict yourself.
Member Since March 2023 - Comments: 37
5:23 PM, 4th July 2024, About 2 years ago
Reply to the comment left by Fed Up Landlord at 04/07/2024 – 17:22
Good advice, especially in today’s climate were the courts seem to be biased towards the tenant .
Member Since December 2023 - Comments: 1589
6:03 PM, 4th July 2024, About 2 years ago
Reply to the comment left by Elo at 04/07/2024 – 16:42
Legal costs are allowable expenses. A basic rate taxpayer would be out of pocket to the tune of 80% of the costs each time they issue a possession notice.
Member Since April 2024 - Comments: 5
11:39 PM, 4th July 2024, About 2 years ago
Why don’t you apply for a managed payment to landlord (MPTL) via the DWP website?
Member Since March 2023 - Comments: 1506
7:54 AM, 5th July 2024, About 2 years ago
I have used Landlord Action in the past, very efficient and they get things done.
Member Since February 2021 - Comments: 106
7:59 AM, 5th July 2024, About 2 years ago
Reply to the comment left by GlanACC at 05/07/2024 – 07:54
Better do it quick!
Labours in??
Member Since March 2023 - Comments: 1506
8:25 AM, 6th July 2024, About 2 years ago
Any time you have more than a ‘simple’ reason for evicting (eg. tenant is more than 2 months in arrears) – then use an eviction specialist like Landlord Action as they have been there before. This means anyone with suspected mental health issues, any kind of illness, any refusal to allow you to inspect the building, anyone who has gone to prison ()I had this once, a nightmare as prison term was less than 1 year)