Singing Pig

Nearly 6 months ago I bought my first BTL house and rented back to the vendor. She paid first month’s rent but then went a couple of months without paying with the usual excuses – in the post, will send it tomorrow etc. Section 21 issued. Then I found she had moved out after about three and a half months into a 6 month AST. She did not make any contact with me about this and has not done since.

 

Have been advised by the NLA that I can’t do anything until the end of the AST which will be in a couple of weeks time and then I can take repossession. I assume that the unpaid rent owed is for the 5 months she has not paid – this amounts to £650 per month = £3250.

 

Is there a professional debt collection company anyone can recommend – it may well be worth it considering the amount involved. I know where she works but not where she’s living now and reluctant to make contact myself in case it might affect my chances. Taking into account the price I paid and the outstanding debts she should have a fair amount still in her bank.

 

Brian 

why not take her to court ? you can do it all on line yourself, and a CCJ against her name will be fair desserts for her behaviour !!   you can claim your court costs from her also.

Hey Clottie,

You said it can be done online. Do you mind telling us which website you can file such a court case?

Cheers!

Cheong

Even if a court does award you the full debt, it is unlikely you'll see a penny. Learn the lesson - only ever let to people who have a very very clean financial history. And consider yourself lucky she's gone. The only tenant worse than one that does a runner without paying the rent is one that stays put without paying the rent. Some might say you've had a lucky - and fairly inexpensive - escape.

Thanks Clottie and Tony2 for a couple of different opinions. I was already resigned to the fact of putting this down to experience learned and going forward but thought considering the amount it may have been worth handing it over to another company to act on my behalf. This was my first BTL and I did buy about £20K BMV so am not completely out of pocket. The house is now being renovated and will use a Letting Agent to properly vet any prospective tenants before accepting them.

 
Cheong, I think Clottie is referring to the Small Claims Procedure online - https://www.moneyclaim.gov.uk/csmco2/index.jsp . I’ve used this before a couple of times for goods purchased and found it very straightforward. An MP3 player I bought for my son went faulty and it was taking weeks to get it fixed (after being quoted 5-10 days). I told them unless they returned it immediately I would go out, buy a replacement and claim a refund. They refused to pay until I issued the claim and then coughed up the money (including court fee). It would have cost them more to have gone to court.

 
I think the problem at the moment in using this method is that I don’t have a new address for the tenant to put on the claim.

 

Brian

Perhaps she missunderstood the section 21 and thought you wanted her out immediatly.  Seems an odd thing to do, selling BMV to stay in the property and then doing a runner, but I guess 'there's nowt as strange as folk'!  At least getting it BMV will make up for some of the loss this time, though I doubt there was much you could have done to prevent it (other than go 30% BMV and give free rent for a while or something), credit checks on her would probably have been pointless as it must be obvious she's prepared to sell BMV for a good reason in the first place.

Oakridge, sorry to hear about your woes. I agree with Tony2. Just put it down to experience, learn from it and move on. I'd like to pass on some warning signs I learned from a couple who rented one of my houses. I used a letting agency to find them and luckily they also issued a section 21 at the outset. The tenants paid the agency the deposit and first month's rent. The woman had told the agent she was a doctor. The next month's rent cheque bounced - and so things continued - and alarm bells started to ring. They gave one excuse after the other. I tried to be accommodating but it was clear they had taken on a property they could not afford then a new born baby appeared - I hadn't realised the woman was even pregnant. They never mentioned it. I managed to get most of the rent eventually but I could see nothing but trouble ahead so I decided to be hardnosed and got rid of them at the first opportunity. It's the best decision I could have made though not one I am particularly proud of. The bottom line is if they don't pay up you have to pick up the pieces. 

Using a letting agent will not necesssarily solve your problems because they often cut corners to get tenants in. You have to satisfy yourself that any prospective tenant has a clean record. Ask the agent to show you all the references or take them up yourself - this is absolutely fundamental.