Tenant defaulting on rent - what to do?

Steve_Roberts_3

Hello

I have a tenant in a property who is one month behind in their rental payments, and with Christmas fast approaching (an expensive time for everybody) I fear they will default on a second month.

If they do default, can I proceed to evict them, and if so what recourse do I have for recovering the money I am owed?

Thanks!

N79

When the second months rent is unpaid issue a S8G8 (with G10 and G11 as backup) notice and wait the two weeks. If no payment then file a possession claim and include a money claim for unpaid rent. Make sure you include all unpaid rent at the time of the possession hearing not the time you file.

However, if the T has no money and no assets then all the money claim will achieve is a CCJ against the T. Actually getting your money from them may well prove to be impossible.

MissMotivation

You cannot begin the process to evict the Tenant until they are 2 full months in arrears.

Have you actually spoken to your Tenant? It may well be advisable to try and put an arrangement in place to pay off the arrears, if possible, before you try and evict them. If they have no money it will be really difficult to get it once they have left!

Jowo_2

http://www.landlordzone.co.uk/rent%20arrears.htm

http://www.landlordzone.co.uk/grounds_for_possession.htm

http://www.landlordzone.co.uk/debt.htm

This site has information how to serve an S8 and S21 (the latter you may want to issue as a belt and braces approach but which will not apply until the end of the fixed term). For example, if the tenant pays down the arrears to just under 2 months at the time of the hearing, the possession notice will fail.

If you don't have the appetite to do this yourself (many notices fail in court because the landlords complete them incorrectly) then engage Landlord Action to do it for you.

In terms of getting the arrears back, this depends very much on whether you've enough details on the tenant to help track them down if they leave without paying, if they are in employment and so forth. Did they complete a tenancy application form and provide you with a copy of photo ID?

Steve_Roberts_3

Jowo wrote: »

In terms of getting the arrears back, this depends very much on whether you've enough details on the tenant to help track them down if they leave without paying, if they are in employment and so forth. Did they complete a tenancy application form and provide you with a copy of photo ID?

Well, I am actually letting out the property through an agency, so I assume that the paperwork you mention is in place. At least it ought to be, for the fees they charge every month!

C_Mababejive

You have my sympathies. I'm sure they will have enough money to get lashed and treat themselves.

Fire_Fox

Steve_Roberts wrote: »

Well, I am actually letting out the property through an agency, so I assume that the paperwork you mention is in place. At least it ought to be, for the fees they charge every month!

It is a huge mistake to assume anything where letting agencies are concerned, we see time and time again on the boards of this sort of issue. Is the tenants deposit properly lodged in a scheme (your legal responsibility, can't evict without this)? Has the tenant been written to regarding the arrears, the letter being sent recorded delivery? Are you a member of a landlord's association?

Jowo_2

Steve_Roberts wrote: »

Well, I am actually letting out the property through an agency, so I assume that the paperwork you mention is in place. At least it ought to be, for the fees they charge every month!

How soon on into their tenancy agreement did they stop paying?

Don't assume. Ask to see the tenant screening report that you paid them through the nose for - previous landlord references, current employer references and credit check, electoral register check as well as proof of ID which tends to be the core features of tenant screening.

Also, ask to see confirmation of the tenancy deposit scheme they used (if in England/Wales) and a copy of the inventory/schedule of condition.

All of these are quite basic features of a standard letting.

If not, time to find a new agent.

http://www.landlordzone.co.uk/agents.htm