Tenant did a runner with 2 months rent unpaid

elsi_2

One of my tenants did a runner yesterday, leaving the rent for May and June unpaid. I'd been in touch with him previously asking him to sort it out, and he kept saying it was a problem with the bank and that the money would be in my account asap. It never turned up, so I told him it'd have to be in my account by Friday (yesterday) at the latest or I'd have to consider whether I could let him stay. He never replied and the money didn't turn up, so yesterday I went there with a letter giving him two weks notice. He wasn't in so I posted it through the letter box. I got home and wrote him a pretty nice e-mail under the circumstances saying I was sorry and why I thought it was best for both of us. A couple of hours later I got a phone call from one of the other tenants saying he'd left with all his things and left the keys in an envelope. My letter was there unopened with a pile of other post.

I'm not sure how to proceed. Firstly how should I treat the deposit? I guess it's a hypothetical in that I don't expect he'll contact me to try to get it back. But if I go after him, how much money does he actually owe me? Does he owe two months rent (with the deposit covering July, as he left without giving notice)? Or does he owe a month and a half (as the deposit covers the two weeks notice I gave him, plus half another month)? Or does he just owe one month (I'm owed nothing for July because I'd asked him to leave anyway, and the deposit covers one of the months he didn't pay)?

BTW, it's a single Assured Shorthold Tenancy Agreement between three tenants, and the tie-in period expired a few months ago. The fact it's a single tenancy makes it more complicated, I think, because essentially the other tenants are liable to pay it, I think, under the trems of the contract. So could I even make a claim against him individually?

And how do you go after somebody to try and claim back your money? I have the contact details of his old employer, and I think his mother (presuming he didn't fake them).

I'm so confused :mad: Thanks to anybody for any help!

mchale

This may give you some help

http://forums.moneysavingexpert.com/showthread.html?t=1752889

I think for the sum involved, I would just find another tenant, this time sighting 2 forms of ID and maybe getting a guarantor, If all the tenants signed the 1 AST then you could claim outstanding rent from the 2 remaining tenants whether thats morally right only you can decide

tbs624

If you have the address of an other family member that’s the first place to start. Does the former T use Facebook or other social networking sites, as you may find clues on there The other Ts may be able to help you with a forwarding address, especially once they realise that they have joint and several liability for the debt. What that means btw is that you can go after any of the Ts individually or all of them, so yes, you can make a claim against the T who has done the runner.

I think that you may find it helpful to join up to either the RLA or the NLA ( national LL associations) or to Tessa Shepperson’s excellent LLLaw site. Membership fees tax deductible and much help available to you on these sorts of issues . For your other tenants’ sakes you should understand that you cannot just give a T two weeks’ notice even if a T hasn’t paid their rent - you have to do it properly via Section 8 Notices (Gr8, 10 and 11) if there are arrears/late payments and with a full two months when/if there has been no breach.

As the tenancy is now a statutory periodic agreement, the Ts would have to give you one month’s notice to end their tenancy and if one of them effectively gives notice it brings the tenancy to an end for the others, unless both you and they agree to a replacement T being brought in or the remaining two agree to take on the whole property.

Have you scheme registered the tenants deposit and given them the prescribed information, and have you also checked back what your tenancy agreement says you may use the deposit for? (Deposit regs apply for properties in Eng/Wales for any deposit received after 6 April 2007).

Any letter that you send to the T c/o of another address should confirm that you understand that he has abandoned his tenancy - cite the conversations you have had with the other Ts and the fact that keys have been left at the property. This is important because he does still have the right to occupy until the legalities are sorted out.

How far you want to pursue it depends on how much time and energy you have to give and whether you want to retain the other 2 tenants. Although they have signed a J&SL contract, they may just decide to move on too if you end up pushing them for any shortfall. If you can get an address for the non-payer you can pursue him though the small claims court, but even if you win a judgement including your costs you still have to get it enforced. Many experienced LLs would say to get in a new T asap - get the other two to assist - use the deposit to cover as much as you can and then write off the balance ( include any written-off figure in your financial year end/tax returns). Tighten up your tenant vetting procedures and make sure that you are fully aware of your own legal obligations as a LL.

Willsnarf1983

if the other tenants are jointly liable could you not put their deposits towards the loss in rent when they leave?

Will

Jowo_2

elsi wrote: »

I went there with a letter giving him two weks notice.

Which is a breach of housing law and if you went through with the eviction, possibly a criminal offence. You indicated that it's a periodic tenancy agreement and this requires a landlord to give 2 months notice to coincide with the rental period (i.e. if the tenancy agreement begins on the 1st of the month, notice should expire on the 31st). If your tenant challenged this eviction in court, you could have ended up being ordered to pay him compensation. Your options could have included agreeing to an early surrender in which case you'd have got it in writing from the tenant and accepted the keys.

Also, if its a joint agreement, by ending it for one tenant, you end it for all unless you negotiate a new one with them.

elsi wrote: »

The fact it's a single tenancy makes it more complicated, I think, because essentially the other tenants are liable to pay it, I think, under the trems of the contract. So could I even make a claim against him individually?
!

Yes, you can take action against him individually but then if the other tenants are jointly and severally liable, you can pursue them. Make sure they know they are eligible to pay the full rent from now on. Did they even know their co-tenant wasn't paying? It's common practice to inform all tenants in joint tenancies when one defaults.

elsi wrote: »

And how do you go after somebody to try and claim back your money? I have the contact details of his old employer, and I think his mother (presuming he didn't fake them).!

Did you not even perform basic screening on this tenant - previous landlord references, current employer references, photo ID, credit check? Screening out poor tenants from giving them a tenancy cuts out 90% of the problems. Most tenants who know they will fail a check won't even bother to view a property once the landlord tells them it will be done.

And have you heard of 'professional tenants' - these are ones that know housing law better than the landlord. Some even pretend to leave the property, then come back and try to take up residency again, then sue the landlord, once they find out that the landlord did not gain possession through the courts.

You may have to put this down to a learning experience. If not, there is plenty of info how you can take legal action which I'm sure someone on here can provide.

You may wish to insist in future that all new tenants provide a guarantor.

Did you lodge the deposit in the tenancy deposit scheme?

clutton_2

join national landlords association - joining fee is tax deductible - and you get cheaper house insurance - as well as a great legal help line .... this is a complex one....