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Tenants defaulting on rent

Last post 02 Sep 2008, 4:51 PM by Parchy Kella. 13 replies.
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  •  19 Jul 2008, 12:17 PM 539686

    Tenants defaulting on rent

    This might seem a bit obvious but one of my tenants have missed June's rent. I haven't yet contacted them and I was wondering what the best steps would be to remedy this.

    I don't want to look like I'm harrassing them but of course this can't go unnoticed. From previous experience I don't expect much response by letter or phone.

    What would be my best course of action legally so that everything seems above board and if the worst comes to the worst it doesn't look like I was hounding them out?

    Any advice gratefully received.

    IO


    It's time to wake up.
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  •  19 Jul 2008, 12:37 PM 539690 in reply to 539686

    Re: Tenants defaulting on rent

    A tenant should always be contacted shortly after the due date if rent is not received. This is not harrassment! In the majority of cases, the tenant will be embarassed, have a perfectly genuine reason as to why the rent hasn't been paid and rectify the situation as soon as possible.

    A tenant may also do this intentionally to test as to how sharp his landlord is in picking up such matters. Once he knows where he stands, rent payments are made regularly.

     P.P.


    "Ohm's law rules here"
  •  19 Jul 2008, 4:26 PM 539736 in reply to 539686

    Re: Tenants defaulting on rent

    I use the following process after 48hrs of late payment all within 1 month;

    Polite Text

    Phone Call

    Letter

    Section 21 Notice

  •  19 Jul 2008, 5:56 PM 539739 in reply to 539736

    Re: Tenants defaulting on rent

    And when the second in advance monthly rental payment is not received by the due date, you continue with a section 8 notice.

     P.P.


    "Ohm's law rules here"
  •  22 Jul 2008, 6:30 PM 541829 in reply to 539686

    Re: Tenants defaulting on rent

    Thanks for the feedback.

    Text and phone call now complete.

    Regarding the letter, recorded delivery? And how long before serving the section 8/21?

    BTW, what are sections 8 and 21?

     Thanks again.


    It's time to wake up.
  •  22 Jul 2008, 8:08 PM 541880 in reply to 541829

    Re: Tenants defaulting on rent

    A section 21 notice is served on a tenant when a landlord wants his property back. No reason has to be stated. The notice must give the tenant at least two months notice that the property must be vacated and this notice must not end until the end of the fixed period granted by the original AST. Provided tht the wording of the notice and the notice periods given are correct, A judge will, on application to the court, automatically grant a possession order to enable the landlord to recover his property without a court hearing. (If necessary a court bailiff then has to be engaged to evict the tenant legally.)

    When a tenant fails to pay his rent and it is overdue for at least two months, he can be evicted under section 8. Only two weeks notice need be given by a correctly worded section 8 notice after which court action can be commenced. As a reason for eviction is now required, this has to be tested in court, thus a court appearance is necessary. If the tenant reduces his arrears to below two months at or before the court hearing, the grant of a possession order is no longer mandatory. To get over this, grounds 10 and 11 are also cited - excessively late or irregular payment of rent, but these grounds are discressionary so unless you can afford the services of a particularly silver tongued solicitor or barrister, the Judge will probably accept the tenant's sob story and not grant the possession order. Don't forget however that if a section 8 process is used, the notice can be served when two month's rent is UNPAID: this means, if your AST requires rent to be paid in advance (like most do) then if the tenant fails to pay the first month's rent, the day after the second month's rent is due - i.e. a month and a day after rent started to become due, a section 8 notice can be served. If you are going to do it yourself, you will need to do a ton of research to sort out how to do it, but if you decide to use a legal professional, then make sure that he/she is experienced in landlord/tenant law. Not all solicitors are. If you have problems in finding one, have a look at www.landlordzone.co.uk/forums and try the advertisers there. They all DO know what they are doing! There is also tons of useful advice on that forum as well.

    Send the letter by normal post if there is no reaction to the action you have already taken. This gives you time to sort out a suitable solicitor if you want to.

    P.P.


    "Ohm's law rules here"
  •  23 Jul 2008, 3:10 PM 542655 in reply to 541880

    Re: Tenants defaulting on rent

    I run screaming from going down the court route as it is torture. I will issue section 8 1 day after the rent has defaulted for the second time (as above) and a section 21, the tenant will either then 1) bog off - and I get my house back 2) pay up 3) do nothing.

     If you do nothing and have not pursued them for the rent they will take option 3 any way. Bottom line is that you want rid of them, they will never make you rich or happy, and don't kid yourself that anything else is possible.  You also need to be strong about this, rent on time and nothing less. These chaps may offer you the carrot of paying rent at the end of the month/in stages/etc, apologise and say sorry this is not acceptable - and ask how much do they have in the bank now, right now. If they have £2.36, ask for it to be paid to you - you need them to take you seriously. My gut feeling is always to get rid of non payers where they have not called you in advance of non payment.

    I will offer to buy out a crappy tenant before I will go to court as it is invariably cheaper, having the calm/non argumentative conversation with the tenant explaining that you no longer want them as a tenant often has the right effect.


    Houses wanted in Hull to £80k. All considered- burn outs /refurbs or refurbished. Fast completions no surveys. Commissions paid!
    Now taking on cost cutting refurbs/management Croydon and Hull.
  •  23 Jul 2008, 3:16 PM 542659 in reply to 542655

    Re: Tenants defaulting on rent

    Section 8 's are preferable if you are going down the court route, as they are in effect a CCJ, you can pursue the debt like any other - for years if you like. Section 21s take ages to sort out through the courts and are no guarantee of success -  they give them plenty of time to strip smash and steal inside the comfort of your own house!

    Houses wanted in Hull to £80k. All considered- burn outs /refurbs or refurbished. Fast completions no surveys. Commissions paid!
    Now taking on cost cutting refurbs/management Croydon and Hull.
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