Tenants didn't pay the rent

clearmydebts

Ok, Thanks. Am probably panicking too much. I was just so mad at the agency yesterday vecause they seemed so blase about the whole thing. It's just I am trying to pay my debts and we are starting to make headway and then something comes along. But I suppose this happens to everyone along the path to being debt free.

My OH is going to ring the agency today to see what the situation is.

barnaby-bear

clearmydebts wrote: »

Ok, Thanks. Am probably panicking too much. I was just so mad at the agency yesterday vecause they seemed so blase about the whole thing. It's just I am trying to pay my debts and we are starting to make headway and then something comes along. But I suppose this happens to everyone along the path to being debt free.

My OH is going to ring the agency today to see what the situation is.

How many months funds reserved for void/contingency do you have in your business plan for the BTL? Is this in a separate aco!!!!, you really should be keeping the moneys separate from your private cash stream because if the tenants don't pay for months and you go to long winded formal eviction you can write off the business losses against the business tax.

clearmydebts

Well luckily my OH is getting paid next week (is a student but earns good money during the year) so we should have about 4 months rent then which is great. We will put that in the same account and keep it there. Unfortunately, up until now we had no contingency money as there was only wage coming in and debts to pay. Should be a lot easier from now on.

DawnW

my tenants have been late paying their rent every single month since they have been in the property. I don't think they mean to do this (there is always a huge drama every month, and we are currently waiting to see what the excuses are this month LOL), they do actually pay it, albeit always late, and they are nice enough, it just seems that ithey are quite hard up for whatever reason - though both working - and not very organised. I wouldn't want to be in a situation where I depended on them paying on time to pay my own bills:eek:
Hopefully you can put several months rent in a separate account from now on, to cover this eventuality. Remember too, you will need to pay tax on the rent, or at least the proportion of it left after LA fees, repairs, mortgage interest etc. Hope they pay up soon. It is a massive hassle renting a property out, I do it because of work reasons as well, not because I want to be a BTL landlord. Good luck.

tbs624

clearmydebts wrote: »

All their previous payments went in so don't think it could be a digit missing.

The tenants are private renters (through an agency) so not through LA.

Sorry - I meant LA as in letting agent, rather than local authority which is possibly how you have interpreted it

If a tenant misses rent it's worth knowing when the agent last inspected, just in case they have done, or are about to do, a runner.

Bungarm2001

To be honest, in all my years as a LL I always count it as quite a bonus when half the tenants DO actually pay on time.

I have never had a tenant yet that wasn't late with the rent at least once in a 12 month period, even when paying by DD or SO. The problem I find is, it leaves the tenants a/c on the right day, but doesn't always get into mine for anything up to 10 days later.

NO on'es fault but the banks as far as I'm concerned.

Why when we live in the 21st century with instant money transactions does it take that long to get into the receiving account? Where does the money go??? More to the point, who is making the interest on it while it's floating around in cyberspace???

clearmydebts

tbs624 wrote: »

Sorry - I meant LA as in letting agent, rather than local authority which is possibly how you have interpreted it

If a tenant misses rent it's worth knowing when the agent last inspected, just in case they have done, or are about to do, a runner.

Sorry Ttbs624, I did indeed misinterpret it.

Anyway the update is that the agency have tried to ring the tenants and got no answer. They have now written to them and have had no response yet so they have to wait 2 weeks and then I think a solictor gets involved.

To be fair, they are probably dealing with this on a daily basis. It's just cos I didn't have a buffer that I freaked out. I will have one from next week onwards. I just hope they haven't wrecked the place or anything but they would have had their references checked.

At any other time it would be okay but with one wage things are very tight for us at the moment. Am just mad at the tenants because I have never defaulted on a rent payment myself.

SquatNow

If you practically go bankrupt after tenants miss a single rental payment, what the hell will you do if they refuse to pay and you have to evict them, they give notice and you have a void or the boiler breaks and you have to repair it?

You can't say "sorry I don't have the money this month, I'll have to have the boiler repaired next month".

F*****g amatuer landlords.

lifesuckssometimes

SquatNow wrote: »

If you practically go bankrupt after tenants miss a single rental payment, what the hell will you do if they refuse to pay and you have to evict them, they give notice and you have a void or the boiler breaks and you have to repair it?

You can't say "sorry I don't have the money this month, I'll have to have the boiler repaired next month".

F*****g amatuer landlords.

CALM DOWN DEAR YOU ARE BETTER OFF USING YABOO:rolleyes: AND CHAT WITH YOUR KIND ON THERE.. ABUSE LIKE THAT HELPS NO ONE.
( RESPECT FOR OTHERS COSTS NOTHING ):money:

clearmydebts

SquatNow wrote: »

If you practically go bankrupt after tenants miss a single rental payment, what the hell will you do if they refuse to pay and you have to evict them, they give notice and you have a void or the boiler breaks and you have to repair it?

You can't say "sorry I don't have the money this month, I'll have to have the boiler repaired next month".

F*****g amatuer landlords.

I'll admit I am an amateur landlord but this property wasn't a buy to let. We had to move country because my OH was going back to uni and didn't think it was a wise time to sell. That's whay we use an agency. They are the experts.

I have all electrical things (including a boiler) in the house covered by a warranty for 5 years so not really an issue. We have had to pay for various things such as mice extermination and have covered that no problem.

All I was saying was that money was tight this month but we will be fine after my OH gets paid. And I was just wondering if anyone had been through this. There is no need to be so aggressive in your post.