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Missed payment

Started by russ1974, July 16, 2012, 05:04:23 PM

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russ1974

Hi,

We rent a property to "friends", no agency involved, but we do have a basic contract.  They missed one month's rent 9 weeks ago after a job change / cash shortfall.  They never asked us if that was ok, they just told us on the day they couldn't pay it but would pay it back the next week.  In summary they've told us about 4 or 5 times now that they will pay the back rent on a particular day, that day comes and goes, but the missed rent does not come.  They have paid two rent payments as normal since the missed payment, but still no sign of the missed payment.

Anyway, we've had enough, so even though they are friends, they've lost our trust and we want them out.  I understand that an eviction is fairly straight forward if the tenants have missed two monthly rent payments, but in this case they have missed one payment, but the debt is now +2 months old.

Just wanted to check that I can "evict" due to breach of contract (which states monthly payments), as opposed to having to serve notice (which is 60 days)?

Thanks.

Topseyt

#1
Oh the joys of renting out your property to friends/family.   ???  It can really test the relationship. 

Many years ago, against our better judgement and under intense pressure from certain family members, we rented one of our flats to my brother-in-law, and really regretted it (he never paid us anything and did not look after the place well).  Following that experience, my advice to anyone would be to stay clear, though I should say too that each case is different. 

Did you have a guarantor to back up your friends rent payments when you signed the lease?  If you did then you could pursue the missed payment via the guarantor, who is responsible for ensuring rent is paid in the event that the tenant falls on hard times.

Perhaps you could set out a payment plan in which they could bring things up-to-date in instalments if they cannot pay all at once?  They could pay it over two or three months (or longer, that is up to you), on the usual rent day, and then once all is square revert to paying their normal monthy rent.  That might be the best way to emerge from this and salvage some of your friendship.

If that fails then I would probably go down the route of a section 21 notice (think it is section 21, as that is what I used for an unreliable payer), perhaps stipulating that the outstanding amount will be deducted from the deposit if it has not been paid by the day they vacate.

russ1974

No guarantor, no deposit ... (i know, i know).

I'm not bothered about getting the money back now, just want them out in the quickest legal way possible so we can get a letting agent and "proper" tenants in.  Not interested in payment plans/etc, they've promised the money in various forms 4 or 5 times now and lied on each occasion, the trust has gone, and we just want to cut our losses.  Lesson learnt about "trusting" friends and not doing it properly, but all I want is some advice on the best way to get them out quickly and properly please :)

Topseyt

I am not a legal brain.   :)

What did your contract actually say on the issue?  Did you stipulate a period of notice?  If you did then stick to it.  I suppose you could consider going to the county court or small claims court to try and get your money back though that is when things can get very messy, but you would need more advice on that than I can give.  In 20 years of letting I have only once had to threaten a tenant with county court action, and I can tell you that on that occasion the threat was enough to bring the required result and I didn't have to take things any further (or maybe I was just lucky).  I am hoping someone else with more knowledge may see this and help.

It is never nice when you get your fingers burnt, and even worse when it is done by people you thought were friends (or family).  The relationship is just too close and you can't easily walk away from it.  If it is a third party who you do not know and have no relationship with other than purely business then you can keep your sanity far more as it matters much less.

I would have thought it would do no harm to serve the section 21 notice.  Look up the templates online to make sure it is done properly.  I think there are some explanations on other parts of this site too.  At least then the end will be in sight.  It gives your tenants time to find somewhere else to live and you time to do any repair work and re-market your property for letting if that is what you want to do.

russ1974

Thank you :)  The "normal" notice period is 60 days, so I think I will just serve the 60 days notice and see what happens.