UK Landlord Forum / Life

So have new tenants - they paid the first month's rent in advance to the agent but no sign of the 2nd month's rent - they are now saying they haven't been paid and can they pay the arrears off over a number of months!!!  The rent is £595 per month so we're not talking mega bucks here!  My position is that if they're having difficulties already in month 2 - then I can't see it getting any better and perhaps they need to revise their position?

Should I ask the agency to serve them notice?

Surely your first priority is to pay your rent and if you can't then you borrow from family/friends - rather than ask your landlord to subsidise you???

Any advice gratefully received.

Ooops,

Not really anything you can do until they fall 2 months in arrears.

Legally

However you can speak to them and be firm about your need to have the rent paid on time. Keep it nice and friendly, and assess whether they can actually meet the repayment plan that the propose.

One does wonder what checks the bloody Agent made!

Agree with you rent should be a priority and a LL should not be the one giving a loan.  Why did you do 12 months and not 6?

We did a 12 month's AST as I understand that's what the tenants asked for - all done through an outgoing agent - which makes me wonder if I've been stitched up like a kipper!  Through the wonders of social media [which they have left open to all] I see they are having a very nice social life it seems.......yet no money for rent? Unbelievable.  My son is a student renting and we are acting as guarantors - wonder if I should ask his landlord if I can pay the first month's rent arrears over a number of months??? The only problem is I would never do that - don't know how some folk have the brass neck?     Thanks all for keeping me sane when I wonder if it's me  - not them?  Have instructed the agent to take a firm line and like you say when it hits the 2 month mark then serve notice.

You won't be able to just "serve notice" when it amounts to 2 months of arrears... it's not as simple as that. If a Tenant is paying you monthly (which you say they are) and they are 2 months in arrears on the date of serving a Section 8 notice and on the date of any hearing then you will be successful. If the Tenant keeps the arrears below 2 months, then you won't. If they are at 2 months when you serve a Section 8 but reduce it slightly before any hearing, well... you get the idea. If the Tenant is 2 months in arrears and you serve a Section 8, the notice can be challenged by claims of disrepair...

The message is that there's not much that is guaranteed with a Section 8 Ground 8 notice. Be wary. The guaranteed route to regaining your property (if that is the end game for you) is a Section 21... but you are some way away from being able to serve that because your fixed term is for 12 months.

Does your AST have a break clause you could take advantage of?

Did you take a deposit and, if so, did you protect it properly and in time?

Rent is considered a priority debt, you [are supposed to] pay your rent before many, many other things... http://england.shelter.org.uk/get_advice/money_problems/loans_debt_and_bankruptcy/priority_and_non-priority_debts

Thank you Hippogriff - very useful. My outgoing agent found the new tenants and drew up the 12 month AST - didn't have a break clause in it -even though that was the problem with the previous tenants who wanted to leave after 8 months of a 12 month's AST [I suspect as one of them had moved to a different area for work!] no guarantor. They used an agency to carry out the referencing but due to DPA couldn't share that with me, this information was transferred to my new agent. New agent has drawn up a new AST [not received a copy of it yet]. New tenants have signed it. They paid the first month's rent with previous agent.  So in a week or so they will be two month's overdue - unless they pay the rent as due. I told the agent to tell them that they couldn't pay back the arrears 'over a number of months...' as they requested.  The deposit was taken properly and secured in a proper deposit scheme in correct timescale.  I've done everything properly.  The house is in good condition [better than mine!] newly decorated - I installed carbon monoxide detectors [over and above requirements] did the 5 year electrical check as well [over and above] and I'm feeling really disheartened.  They have children - so why would they want to jeopardise their living arrangements?  It's a different world really it is!  Thanks all - logging off to get to bed to get to work to earn some money to pay my bills.........! Is it worth it!

If you have 1 property and are just dipping your toe-in (user name suggests that possibly, or an inability to choose any other route) then you've been burned and it may very well dishearten you. If you have ambitions to become a Landlord with a portfolio then you will see that this is sometimes going to happen. If you've no ambitions beyond a single property, maybe you want to do all you can - above and beyond / over and above - to get yourself out of this situation as soon as it is possible... if that's means selling for less than you think the property should go for, maybe that is it... at least you won't be at the [future] mercy of people like this.

You have a bit of time to decide, anyway... 

Dear All
Thanks for your responses. Update: tenants paid their July rent late and their August rent on time.......so fingers crossed we're back on track.
Having to rent out - unable to sell - which is a whole other story which I won't go into........

just need to find an accountant now to do the annual return for hmrc who want to squeeze every last pip - I omitted to calculate online the 'interest' due on a payment which came to £7.39 ! [and although I'd paid the arrears online - the option to pay this extra was not available - so I went the old fashioned route and sent it off by cheque] this was on the Friday and on the Monday morning I had a call from hmrc saying I could pay over the phone - debit or credit card she said? I explained I'd already sent it off in the post - they were very quick off the mark...... just wondering if I've posted this online earlier - if I have apologies - am losing it.....