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Rent arrears payment plan

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Author Topic: Rent arrears payment plan  (Read 230 times)
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« on: April 23, 2021, 07:05:24 PM »


Due to Covid I lost a contract and being self-employed found it difficult to pay the full amount to my landlord.  He didn't agree to a rent reduction, however, did agree to accept 80% monthly rent till I found myself in a position where I could pay the rest of the 20% back. 

My position hasn't improved and I have handed in my one months notice to leave.  I have been informed that I must pay the full amount of rent arrears before I leave.  This has mounted to over 5500 pounds.  I have asked for a payment plan to deal with paying this amount back but the agency has rejected this idea.

Where do I stand with legal obligations and being about to vacated while paying the landlord back in instalments till I clear the debt?

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« Reply #1 on: April 24, 2021, 11:00:55 AM »

This is a difficult situation for you and the landlord.He can't afford to write off such a big sum of money,but it does sound as if you want to clear this debt.If he took you to court,it is very likely that you would have an offer to pay in installments accepted. It is not in his interests or yours to have you made bankrupt.It could be worth contacting CAB to get some mediation going.Some banks also offer such a service.If you have given notice in the correct way I don't think they can stop you moving out.Don't be tempted to run away from this.
Is there anyone who would lend you the money privately, with a payment plan agreed between you? Good luck,and I hope you get more contracts very soon. 
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« Reply #2 on: April 25, 2021, 08:27:00 AM »

I had a Tenant who owed a significant amount of money in rent arrears over the last year... my position was that it was fine to establish a payment plan, and I would have been quite happy with a nominal amount each month as long as there was light at the end of the tunnel... that there was a defined end point. We ended up creating a plan that would have taken 16 months for them to pay back, assuming no extra arrears were added. And I was fine with this. However, at the time I tried to add the same kind of condition... if you decide to leave the property, then the arrears need to be cleared. I thought this was reasonable. As long as I had a business relationship with them, and they were renting my property as their home, and I knew where they were... the payment plan could exist... if they just disappeared then I was nervous that their memory of the agreed payment would also disappear.

What I found amazing, and I referenced in another thread, was that in the background they went to the local Council and pleaded something about hardship etc. and the Council paid off all their arrears, directly into my account, three days after they'd had some kind of appointment. I add this, because it's amazing what kind of help exists out there and there's a chance that you might find something is applicable to you too. Don't ask me if it's anything to do with the area they live in, or their situation... I just don't know... all I know is she told me the Council would pay off all the arrears, and they did.

The Landlord described here has followed the guidance laid-out by the .gov websites you can reference... there's no requirement to accept a rent reduction... a payment plan shows willingness to work with the Tenant, but there's no expectation that the debt can be forgiven. Like so many .gov websites they often 'forget' to go into the detail when complexities arise... like what happens if a Tenant wants to end the tenancy while a payment plan is ongoing... I suppose most normal people would assume the payment plan exists and continues... but, for a Landlord, that seems kinda dangerous, doesn't it? A way for both parties to kinda forget about the debt... I am sympathetic with the Landlord's position. And the Tenant.

I am assuming it's an absolute impossibility to pay the 5,000. If it is possible, from savings, then it might be best to get it done... like taking off a plaster, then nothing is hanging over you for when you decide to rent again.
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