S21 notice/Rent arrears/repossession order?

S21 notice/Rent arrears/repossession order?

10:25 AM, 7th March 2023, About A year ago 45

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Hello, I have a question: My tenant is in rent arrears by 6 months and those arrears now stand at £9,600. I have served the tenant a S21 notice followed by a repossession order.

The council pays the tenant £1,875/month towards the rent. The council is also aware that a S21 has been served.

Is it fair for the council to continue to hand over £1,850/ month towards the rent when the tenant is holding back that money?

Regards,
Dave


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Jim

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16:02 PM, 11th March 2023, About A year ago

After 34 years in the business I have actually just issued my first ever Section 21 notice that is actually to evict a tenant and not just for the procedure to ensure that they leave at the end of a fixed term because new tenants are moving in, I am doing this because of Section 24 the threat of losing Section 21 notice and a host of other reasons that we all know about. Oh and the tenant has 5 months rent arrears. Obviouly the tenant who is on benefits has now stopped paying the rent completely and and so when the two months notice is up in April I don't think she will move out and I will have to apply for a court order. I have never applied for a court order and I know its a paperwork application form but can anyone tell me how a judge determins the court order assuming all of the other paperwork gas certs etc has been served correctly. I mean does the judge just automatically issue the approval of the court order or do we have to actually go into court and speak to the judge. I know that this may seem a very simple question but I have never had to do it and I have many properties although most are student properties and they always leave anyway.

Rob Gordon

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16:10 PM, 11th March 2023, About A year ago

Hi Jim. Forget Section 21, these are far too complicated now. Use a Section 8. Also tell UC that there are arrears, and money should be sent to you, although you will have to receipt this as MESNE PROFITS NOT RENT. If there are at least 2 months arrears as at the date of the hearing, the Judge will HAVE to grant you possession of the property as well as judgement for the amount you have claimed. Also as at least 5 months arrears you only have to give 2 weeks notice.

Karen Dodd

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19:25 PM, 11th March 2023, About A year ago

Reply to the comment left by DSR at 08/03/2023 - 10:29
What is DWP for rent arrears please? My tenant hasn't paid rent for 12 months but I have finally got a date with the bailiffs. And, UC just paid this month's rent and an additional payment of £34. Is that the arrears contribution? It will take a lifetime to get £7K arrears from them but thankfully, now heading in the right direction!

Reluctant Landlord

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10:14 AM, 12th March 2023, About A year ago

Reply to the comment left by Karen Dodd at 11/03/2023 - 19:25
use UC47 online for asking for direct rent payment and for logging rent arrears info in order to set up deductions from source.

The amount of money that the DWP assess a LL may receive (by direct deduction from the tenants UC 'income' ) will decided on what other debts they have and the value of those. Only a certain % of deductions can be made from the tenants benefits, and of course you may be competing with utilities and council tax deductions too if those bodies have also taken the decision to ask for deductions....

Of course something over nothing is welcome, but you probably wont gets what's totally owed potentially before the tenant is evicted. The point is to go through the process. Apart from anything else it stays on the tenants DWP record.

It is also worth making the Council aware of the debt. They MAY decided to offer to pay the arrears off if they think there is a chance of you not progressing with eviction. It could be cheaper to pay you than the cost to house them in temp accommodation....

Reluctant Landlord

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10:16 AM, 12th March 2023, About A year ago

Reply to the comment left by Karen Dodd at 11/03/2023 - 19:25
sounds like the additional £34 is a rent arrears deduction. I normally get a letter from UC a month after detailing the deduction payment and the payment period it is for.
But yes - the deductions will never meet the full debt as it will only be a % as they have to have a certain level of benefit to live on.

Rob Gordon

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11:29 AM, 12th March 2023, About A year ago

Reply to the comment left by Karen Dodd at 11/03/2023 - 19:25
Not sure if UC have paid you direct, but be very careful if they have, as by accepting it you may be creating a NEW TENANCY. So your eviction order would become invalid. If they have paid you, either return it to them or tell them that you are accepting it as MESNE PROFITS.

Jim

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13:57 PM, 12th March 2023, About A year ago

Reply to the comment left by Rob Gordon at 12/03/2023 - 11:29
Hi Rob,
So what you are saying is that it is ok to receive rent for rent arrears before any section 8 or section 21 notice expire but as soon as they do expire the tenant is then classed as an illegal tenant because their tenancy with you has expired and so any new payment of rent or rental arrears must now be recorded as mesne profits so that it can never be argued that you have allowed a new tenancy to begin? Surely any rent payment would be allocated to rent arrears first and not as new rent for a new rent period.

Rob Gordon

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16:53 PM, 12th March 2023, About A year ago

Reply to the comment left by Jim at 12/03/2023 - 13:57
Hi Jim, just to on the safe side any monies received AFTER the tenancy has been ended should be clearly receipted as MESNE PROFITS otherwise a 'smart' defence lawyer can claim that a NEW tenancy has been created. Remember most of these tenants are eligible for help from the legal teams at SHELTER and other such organisations, and they are very experienced. Not sure if you are just asking questions or actually have a situation with a tenant. But ignore my advice at your peril.

Reluctant Landlord

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7:41 AM, 13th March 2023, About A year ago

Reply to the comment left by Rob Gordon at 12/03/2023 - 16:53
dont forget UC rent payments (if made direct to you) are paid a months in ARREARS, so potentially you can get rent arrears paid to you after they have been evicted by bailiffs for the period pre eviction. (hope that makes sense.)
It would only be classes as overpayment if the tenant or LL failed to tell UC the change of known circumstance (the date the bailiffs evicted them) and and you received any money thereafter for a period when they were NOT legally living at the property (the date from the bailiff eviction onwards).

Rob Gordon

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9:21 AM, 13th March 2023, About A year ago

Reply to the comment left by DSR at 13/03/2023 - 07:41
Hi DSR, as I said previously it is far better to be 'safe than sorry' and any monies received after the tenancy has been officially ended should be endorsed 'MESNE PROFITS' Can't see why you are arguing about this it is not difficult to do. Also I can't understand why any landlord would wish to receive money direct from UC and not via the tenant. Please be aware that UC can legally reclaim this money up to 6 years after it has been paid, and they often do this. The key with renting is to act fast just as soon as a tenant appears to be getting into arrears.

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