UK Landlord Forum / Life

Hi all

I am new to this site and would be grateful for any help.

We informed out tenants 2 months ago that we will be increasing the rent when their contract runs out in June.  We followed it up with a formal notice last month.  This told them that if they were not happy with the increase that they could negotiate etc but there was no reply nor acknowledgement from either Mr or Mrs. Tenant.   We know that their email addresses work as we have been communicating with them previously this way.  Two days before the rent was due, they pay the old amount into our bank account.  No mention of the increase, no communication at all from them

The new rent is in line with rentals in the local area, it is no higher.  We did not get into the rental market soon enough last year so we lowered the rent and the tenants have had a year of lower rent.  Our managing agent has also upped and disappeared with 2 months rent, our tenant's deposit (which we now have to replace) and half a year's worth of fees (that they collected upfront).  We have not been able to trace them and we explained to our clients that one of the reasons why we are increasing the rent is because we are thousands of £ out of pocket due to the agent as well.


As they are not communicating with us, what is out next move please?  Do we write and say that they are now in arrears?  How long should we wait before we talk about possible eviction?

Any help will be very welcomed

When you say you issued formal notice, was that a proper Section 13 notice or did you just e-mail them?

If your agent has done a runner with the deposit, does that imply it wasn't protected in the first place? If so, you're on the hook for a penalty of 1-3 times the deposit (realistically it'd be most likely to be 1x, given your circumstances), which doesn't put you in the best position to negotiate. If your tenants are otherwise decent and you don't particularly want the faff and cost of finding new ones, then you might be better offering to keep the rent at its current rate in return for their not suing you for failing to protect the deposit.

I am not sure it is a good idea to be emailing Section 13 notices. Your AST and modus operandi might allow for this, but I think printing it out and getting a proper proof of postage (like you would with a Section 21, for example) is a much smarter move with a formal notice. The Tenant, as you know, has a right to refuse and appeal - but that has a time limit to it. If the notice period expires and there's been no appeal the rent rise should stand; but it seems the Tenant has not paid it - which seems to imply that they have not accepted it (but have not appealed). The next step after this would be the sending of a Section 21 (as mentioned before) or capitulation on your side.

This text here also makes me feel the rise could be considered unjustified - "...we explained to our clients that one of the reasons why we are increasing the rent is because we are thousands of £ out of pocket due to the agent as well." - a Tenant should not be penalised for the actions of a third party.

Thank you very much for your replies.

The agents insured the tenant's deposit with mydeposits.com and when the agents disappeared, we were told that they did not renew their subs so we put the same amount of £ into a separate account and paid for mydeposits to protect it, so the tenant's deposit is protected.

We heard rumours that there was something amiss with the agents when we did not get our rent and we tried to get in touch with the tenants.  We contacted the neighbour who left them a message to call us but they did not because the neighbour made a mistake with our number.  After waiting for some days, we wrote to them and asked them to call us. In the meantime, they paid the rent to the agents.  Had they called earlier, we may have lost only 1 month's rent.  We are not expecting the tenants to make up the losses that we had, we were trying to explain that we were not putting up the rent simply because we were being greedy or because their contract had now come to an end.  We simply could not keep the rent low and we just wanted to explain our rationale.

I read the notes on the Section 13 but I don't think it gives a time limit.  I don't want to be heavy handed nor appear to be going in all guns blazing with a section 21; should I just write to them saying that they are now in arrears and asking for the remainder of the rent, or will I be compromising my position? 

And yes, I will certainly be sending it by post with proof of postage or recorded deliver this time

You've got quiet tenants who pay the rent on time. Under those circumstances, I wouldn't be in a hurry to reach for a Section 21!  Apart from anything else, if you're new to letting, you're likely to lose at least a month between tenancies, which is money down the drain.

At this stage, we don't even have confirmation that your tenants received your Section 13. Even if they did, it could be they think it doesn't kick in until next month. Did you send it early enough to give more than a month's notice from the rent due date? Indeed, if they've only just started paying you instead of the agent, it's possible they've lost track of when the rent due date is. I'm more inclined to think this is a simple misunderstanding or miscommunication than a deliberate attempt to avoid paying.

Quote from: ckurimbokus on June 05, 2018, 04:12:34 PMI read the notes on the Section 13 but I don't think it gives a time limit.  I don't want to be heavy handed nor appear to be going in all guns blazing with a section 21; should I just write to them saying that they are now in arrears and asking for the remainder of the rent, or will I be compromising my position?

The Tenant must apply before the new rent is due to start.

Quote from: Simon Pambin on June 05, 2018, 04:49:30 PMAt this stage, we don't even have confirmation that your tenants received your Section 13. Even if they did, it could be they think it doesn't kick in until next month. Did you send it early enough to give more than a month's notice from the rent due date? Indeed, if they've only just started paying you instead of the agent, it's possible they've lost track of when the rent due date is. I'm more inclined to think this is a simple misunderstanding or miscommunication than a deliberate attempt to avoid paying.

I very much agree with this... bearing in mind the information we've been given.