Singing Pig

I have a tenant who has defaulted on his rent payment due to splitting up with his girlfriend and then losing his business, however he has since got himself a job and come up with a payment plan to pay off his arrears.  He is due to pay half of his arrears tomorrow.  He says he wants to stay in the house long term, but with his innitial 6 month AST coming to an end and having issued a section 21 to cover ourselves, my question is (if he pays tomorrow) should we give him another 6 month AST, keep him on a  periodic tenancy or not renew at all.  Any thoughts?

I would definitely keep it periodic to keep your options open, otherwise with a new AST you have longer to wait should he default again.

Yeah defo keep it periodic. I've been caught out on this one before, they pay a one off to get a new AST then thats the last you see for six months....Obviously the new AST will void the section 21. Keep things as they are then if he pays, great he can stay another month and so on. If he does pay tomorrow then keep him in - at least you know he is paying rather than going with a complete stranger who could be even worse!  

Thank you both for advice.

Hey Mr BC  - What happened in the end? Did he pay up?

No!  He says he has the tax man on his back and the threat of prison if he does no pay them.  He says he will leave at the end of the tenancy and he wanted then to pay £100 a month.  I have told him that we will have to begin court proceedings against him and his girlfriend for the 3 mos outstanding.  All very amiciable at the moment and he "is sorry for the inconvenience"!

Any thoughts Housecatcher, anyone?

Sorry to hear about your predicament BC. I'm afraid that I can't offer any useful advice. However, could someone please explain what the practicalities/legal implications etc are of a periodic tenancy?

Thanks,

Brad.

If a new AST is not signed and in force when the old AST expires, in law it is replaced by a statutory periodic tenancy. This has exactly the same terms and conditions as the original AST but is ongoing - it has no specific expiry date. Should a tenant want to leave when such a tenancy has come into force, he is required to give one month's notice. If a landlord wants the tenant to leave, then at least two months notice expiring on a rent day (i.e the day in the month that the periodic tenancy commenced) must be given. Proceedings when rent is late - section 8 actions - are unaffected. A landlord may also increase the rent under section 13 if he wishes.

Many landlords (including me) never bother to renew AST's for this reason, and I will only issue a new AST if a tenant specifically requires a period in excess of two months of secure tenancy for some good reason. I have never been asked for this in 9 years as a landlord.

Letting agents however like to renew AST's as frequently as they can, ignoring this partiular piece of legislation. This is because they can make good money out of tenants and their landlord clients by doing so.

 

P.P.