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Rent arrears

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Author Topic: Rent arrears  (Read 436 times)
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« on: February 18, 2022, 05:39:03 PM »

Our tenant has been reliable and always paid their rent on time.
Unfortunately due to Covid they have lost a few clients and are now struggling to pay their rent.
They are two months in arrears with another payment due in two weeks.
We have spoke to them in person today and they are assuring us that we will get our rent.
We have luckily never experienced a tenant being in arrears is all the 20 years of renting several properties.
Please advise on the correct procedure moving forward.
Many thanks.
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« Reply #1 on: February 19, 2022, 12:11:13 PM »

If they are assuring you that you will get the rent due, nothing. Be patient and allow them time to get back on their feet.

If the arrears increase further, or there is no indication they are making the correct efforts moving forward... Section 8 or Section 21. Alternatively you could work together to create a payment plan to get back on track.

It's a bit premature to consider eviction if you have only spoken to them yesterday. That conversation might have incredible effects. Then again, it might not.

Personally, I would sit back. Communication is key.
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« Reply #2 on: February 19, 2022, 06:14:32 PM »

If they have been living  there some time,and  you say they were always reliable, then I would give them a bit longer.Wait until the next rent is due to see if they are genuine.You have been lucky for 20 years,so I hope your luck continues.
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« Reply #3 on: March 03, 2022, 10:09:53 AM »

With regards to the above we have still not received any payment from the tenant.
Three months in arrears now.
So if the tenant is in arrears what time limit is there for letting them go and serving notice please?
Many thanks.
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« Reply #4 on: March 03, 2022, 02:38:49 PM »

I think you can say you have given them long enough.It is most unfortunate,but it does not sound as if they have made any effort to pay you something on account. Assuming they are on a periodic tenancy,I would serve S21 now.You never know,it might make them sit up and take notice.You can always cancel it if they pay you.
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« Reply #5 on: March 07, 2022, 12:49:24 PM »

Thank you.
Because of the 3 months rent arrears do we issue a section 8 or a section 21.
 How long notice do we have to give?
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« Reply #6 on: March 07, 2022, 01:54:03 PM »

Are they on a periodic tenancy? You can serve both. Personally I would stick with 21. It avoids the situation where a tenant pays off  just enough to stall things.You need to give 2 full months notice. If they suddenly decide they can pay up in full,you can decide whether to cancel the notice or carry on with it.   
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« Reply #7 on: March 15, 2022, 05:01:48 PM »

We are about to issue our first ever eviction notice for the rent arrears.
The tenants Tenancy started on July 6th 2014. On the 6th July 2021 another Tenancy agreement was signed due to a rent increase and the tenant becoming the only tenant on the agreement after the tenants partner moving out.
Could I please ask whether there is any other information we need to know?
Many thanks for your continued help.
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« Reply #8 on: March 16, 2022, 10:05:15 AM »

You need to be sure that they received all the relevant documents (Deposit information,gas and electrical certificates if applicable,EPC) when you signed a new AST.The change from  the previous joint tenancy could I believe have required this. If there are any outstanding repairs reported by the tenant get those sorted before serving notice.What was the arrangement with the deposit when the new contract was signed up? 
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« Reply #9 on: March 16, 2022, 09:30:09 PM »

The deposit is still the original deposit when starting the tenancy in 2014.
Full Member
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« Reply #10 on: March 17, 2022, 09:41:36 AM »

The deposit is still the original deposit when starting the tenancy in 2014.

Yes - but that's not the point heavykarma was making.

For your Section 21 to be valid you need to have served them the documents listed, including the Prescribed Information about the deposit, when the new AST was signed.
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« Reply #11 on: July 28, 2022, 07:13:37 PM »

Moving on from my original post.
The tenant is still in arrears but paying rent due to being in receipt of universal credit.
We have now been advised by our accountant and financial advisor to sell the property and this is not because the tenant is in arrears.
What are your suggestions please about notifying the tenant?
Thanking you in advance.
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« Reply #12 on: July 29, 2022, 10:41:13 AM »

Use good old 21 while you still can.Don't even try to put it on the market until they vacate.Serving 21 does not guarantee that






































































Use good old 21 while you can.Don't make any comments about the arrears.Wait until they vacate before you market the property. 21 does not guarantee that they will be gone by that date.Things may well kick off when they learn of your plans to sell.








 they will be out by that date.
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« Reply #13 on: July 29, 2022, 10:46:44 AM »

Why have your accountant and financial advisor suggested that you sell the property?
That sounds most odd.
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« Reply #14 on: July 29, 2022, 11:08:11 AM »

Why have your accountant and financial advisor suggested that you sell the property?
That sounds most odd.

It's what people say when they don't want to sound like a heartless landlord throwing people out on to the street. It's the equivalent of "I didn't want to do it, but a bigger boy made me ... and then ran away". :)
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« Reply #15 on: July 29, 2022, 11:45:35 AM »

It's what people say when they don't want to sound like a heartless landlord throwing people out on to the street. It's the equivalent of "I didn't want to do it, but a bigger boy made me ... and then ran away". :)
This is a landlord forum, I think it would get a different response.

I always worry about a financial advisor telling people to sell property.
It's usually because they can't sell anything to someone who's money is tied up in something that they don't control.
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« Reply #16 on: July 29, 2022, 01:33:53 PM »









I love big blank area you left in your post HK.

Lots of free space for me to write notes. A shopping list maybe.   ;)
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« Reply #17 on: July 29, 2022, 03:03:59 PM »

I just knew some smartarse would spot that. My Jack Russell jumped on the desk.Not that it's any of your business.x
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« Reply #18 on: July 29, 2022, 03:21:06 PM »


Now debating whether to change my profile text from 'Landlord - always learning' to 'Some smartarse'
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« Reply #19 on: July 29, 2022, 03:43:55 PM »

The deposit is still the original deposit when starting the tenancy in 2014.
That's going to be a problem for a section 21 (and possibly a section 8 for rental arrears).

When the tenancy was resigned with only one name as tenant, that was a brand new tenancy.

The deposit needed to be re-protected and the Prescribed Information issued again.
The original protection (and PI) applied to the previous tenancy.

All of the other new tenancy requirements also needed doing.

So, unless you return the deposit to the tenant I don't think any section 21 notice can be valid (you can "return" the deposit by offsetting it against some of the arrears if the tenant agrees).

There's a chance that the judge in the section 8 hearing may reduce the arrears by awarding a penalty for the non-protection, so it might be sensible to time the notice so that the money owed will still be 2 months the rent amount, even if the judge does that for all of the tenancies where a penalty can be levied.
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