UK Landlord Forum / Life

Hi

Last week I have issued Section 8 notice to my tenants in attempt to have my property back as well as recovering the rent arrears due to the fact that they have been inconsistent in paying rent on the time and failed to pay the correct amount of rent money hence the arrears built up over three times.

So far, they are going to give my keys back tomorrow but they are willing to pay the rent arrears and I was not too sure to be honest.  As far as I know he is out of employment but his wife is on a low-paid.  Therefore the judge will favour (I think) them and probably order them to pay me tenner which take years to get money back.

Hence I was thinking to have 'repayment agreement contract' so that they can sign the contract to agree that they pay £X every month providing that they transfer the wire (Standing Order) as well as I will have my witness to sign the repayment agreement contract.

Do you think it is a good idea or recommend me to go court and deal with them swiftly and effectively?

Do you have any sample repayment agreement contract?

Regards

Maverickmax
Humble Landlord

I'd say go through courts. They'll not honour any separate agreement. They just don't have the money. Immediate needs will always take precedence over old debts. They already have no credit, so ignoring the debt to you will be the logical course of action.

My 2p.

Hi Maverickmax,

My 2p is the opposite to Armin.

Contract law says it is impossible to enter a new contract for something you are already bound to do.  So entering a payment contract is nothing more than the rent they already owe you, so it's legally meaningless.

If you go to the court, your victory could by phyrric.  If they are of limited means, you're likely to get awarded what you're due but in payment of £5 or £10 a week.  It will take years to get your money back, if they don't stop the regular payment in the meantime, so you have to go back to court again to get it reinstated.

We abolished debtors jails in the Victorian age.  Now days the poor of dociety are "controlled" by not being given credit, as the courts will not reduce someone to ruin to force the payment of an old debt.  You'll see this from some stories on the blog of long term renters who alywys pay up on time are immediately given a section 8 notice when they give their landlord the courtesy of informing them they are unemployed and looking for a new job.