how late is late

Filey

I am a private LL. I rent out a house I used to live in. Being a soft touch I let it out to a nice older couple without taking a deposit or signing a contract. Yes, silly me, I should have know better! They pay £400/month for a 3 bed cottage, paying the rent directly into my bank account in cash. I haven't increased the rent since they moved in July 2007.

Now for my query. They moved in on the 24th, paying a months rent. Up till last December they paid the rent regularly round about that date. For December it wasn't paid until January 6th and since then Feb 7th, Mar 8th, April 8th, and April's rent still hasn't been paid as yet 10th May. The first late payment was around Christmas and I thought perhaps they had had an expensive time, but it has continued and I feel I should find out what their intentions are.

I shall go round and see them (I live in the same village) but before I go I would like the Forum's opinion on what line to take. I have the feeling they are taking advantage of my good nature (stupidity) but would like to know if this consistently paying about a fortnight late is something I should be worried about.

Thanks for your advice.

maninthestreet

Don't turn up unannouced at the property. Write them a letter explaining your concerns and ask that they reply in writing.

missile

Best to write, then you have a record. Hopefully that will be all the encouragement they need to pay up, otherwise it will end up in tears!

adg1

Best to do it all in writing so you have a paper-trail if they cause any trouble.

They will be on a tenancy agreement of sorts as they pay you rent regulalry for the property and have done for some time. This will be subject to housing act rules.

Some more experienced housing law and landlord posters will be along soon for you...

Maybe they are just old and forgot? Could be worth insisting on a standing order from now on?

Additional: I've just re-read your headline and my answer was:

When its not on time.

BitterAndTwisted

It's possible that they are living on benefits and their Local Housing Allowance/Housing Benefit or other payments don't come into their bank accounts on the same day that the rent is due. LHA and Housing Benefit are paid in arrears and your rent presumably is due in advance so this could also be a reason why they are experiencing difficulties.

Please do not be tempted to "pop round" as this could be construed by your tenants as harassment or interpreted as such in court if it ever came to it and the penalties are not inconsiderable. Plus, by having everything in writing it could make your tenants address and discuss this situation with you seriously and you'd have a proper paper-trail should you need one at a later date. In the first instance I'd keep the tone of the letter fairly neutral rather than horribly threatening so you would be able to show evidence that you attempted to be reasonable in the first instance

tbs624

Filey wrote: »

I am a private LL. I rent out a house I used to live in. Being a soft touch I let it out to a nice older couple without taking a deposit or signing a contract. Yes, silly me, I should have know better! They pay £400/month for a 3 bed cottage, paying the rent directly into my bank account in cash. I haven't increased the rent since they moved in July 2007.

Now for my query. They moved in on the 24th, paying a months rent. Up till last December they paid the rent regularly round about that date. For December it wasn't paid until January 6th and since then Feb 7th, Mar 8th, April 8th, and April's rent still hasn't been paid as yet 10th May. The first late payment was around Christmas and I thought perhaps they had had an expensive time, but it has continued and I feel I should find out what their intentions are.

I shall go round and see them (I live in the same village) but before I go I would like the Forum's opinion on what line to take. I have the feeling they are taking advantage of my good nature (stupidity) but would like to know if this consistently paying about a fortnight late is something I should be worried about.

Thanks for your advice.

My highlighting.Your Ts have discovered that they can pay you your rent late and you will not act. Them having "an expensive time at Xmas" should not mean that they do not pay you on time.

Don't "drop round" - as the others have said, this all needs to be done in writing.

Write reminding them of their agreed rent due date, give them a Rent Statement showing all payments made so far and ask them to bring their payments fully up to date within the next 5-7 days.

The lack of formal tenancy agreement simply means that an AST will be the default, if they have exclusive occupancy of the property and it is in Eng/Wales.

If you don't get a favourable response you need to consider serving a S21 Notice ( which says that you wish to repossess the property after a specific date - two months min to tie in with rental period) alongside a S8 , under Grounds 10 and 11
( for you to also use S8 the T would have to be two months behind with the rent , both at the time of your court application and at the time of the court hearing).

Join one of the National LL associations (RLA/NLA) or a local affiliate , and/or LL Law. Tax deductible membership fees, discount on LL insurance premiums and much useful advice.

Rogue tenants can see a gullible new LL a mile off and will be only to happy to take advantage.

RAS

By the way, is there any gas in the house?

If so, do you have a Gas Safety certificate?

N79

tbs624 wrote: »

If you don't get a favourable response you need to consider serving a S21 Notice ( which says that you wish to repossess the property after a specific date - two months min to tie in with rental period) alongside a S8 , under Grounds 10 and 11
( for you to also use S8 the T would have to be two months behind with the rent , both at the time of your court application and at the time of the court hearing).

A typo?:) OP - a great post from TBS, as normal, but substitue G8 (Ground 8) for S8 in the bold text.

TBS: There - we have both disagreed with each other today - we must be having a bad day:D

princeofpounds

The advice you have been given above is correct. Whilst I would not be so concerned about problems caused visiting (going in person once will never be construed as harrassment) there is an advantage to writing in that it keeps a record of evidence that will benefit you. That's the reason you should write.

You know nothing about their circumstances and really it's not your problem. The line should be that they shoud pay their rent asap [or they face a notice to quit and a court case to recover the rest] - the bit in brackets you would put in your second and final letter! Of course if somebody died or something you may wish to show compassion but you should start the procedure.

One final clarification - you do have a statutory AST contract by the mere fact of you permitting their occupation and them paying you rent. The terms of that contract will be either laid out in law or demonstrated by the intentions of the counterparties - in this case, if they always paid rent on day x then rent is due on day x in perpetuity unless the agreement is changed with the consent of both parties (ideally in writing). If you don't challenge errant behaviour then you weaken your claim to particular terms as time drags on.

Trollfever

Don't forget that you are running a business and need to submit accounts to HMRC.

N79

Trollfever wrote: »

Don't forget that you are running a business and need to submit accounts to HMRC.

Not normally - just a tax return at the end of each tax year. There is no need to submit accounts to HMRC.