Tenant under-paying rent

smartpicture

I have a tenant who agreed to pay £460 per month. The AST has been signed by them, with this figure on it, for 1 year. Yet they say they only agreed verbally to £450, so that's what they're paying. We've debated the point at some length without a resolution, and we're now in the third month of them paying the lesser amount.

What can I do about this? It seems that I can't do anything until they're 2 full months in arrears (which would take years at £10 a month) or they reach the end of the 12 months. Do I just have to accept this? Surely a tenant can't just pick a number and pay whatever they feel like?

neas

over 12 months is it really worth worrying about? Just wait till end of twelve months and put rent up to 470 quid to counteract underpayment. If they complain then they will get 2 months notic from you wont there? in the wend you will have lost 120 quid max.... lets not quibble over small amounts .

maninthestreet

smartpicture wrote: »

I have a tenant who agreed to pay £460 per month. The AST has been signed by them, with this figure on it, for 1 year. Yet they say they only agreed verbally to £450, so that's what they're paying. We've debated the point at some length without a resolution, and we're now in the third month of them paying the lesser amount.

What can I do about this? It seems that I can't do anything until they're 2 full months in arrears (which would take years at £10 a month) or they reach the end of the 12 months. Do I just have to accept this? Surely a tenant can't just pick a number and pay whatever they feel like?

It's what the contract states that matters, not any verbal agreement they are imagining. Can you deduct any rental payment short-fall from their deposit???

CaptainKidd

I would log the shorfall somehow, like keep all recipts for rent payments or bank statements etc and then deduct at end of tenancy. Otherwise you could give yourself a whole lot of hassle for £2.50 per week.

BitterAndTwisted

Send them a rent-statement from the beginning of the tenancy with a copy of the rental agreement and a letter asking them to make up the short-fall immediately.

If you've protected their deposit in one of the three schemes you should be able to claim the arrears from it quite easily.

smartpicture

I know you're right, and it doesn't seem a lot, but in that case, what's to stop them (or any other tenant) from just picking an amount they like and paying that instead of the agreed amount? It could be £400 next month, or £300 the month after, or whatever figure they like to make up. If there's nothing to stop it, why would any tenant bother paying the full amount?

So long as the DPS will allow me to deduct the outstanding amount from the deposit, then I guess it doesn't really matter - although it's still annoying that they can take the mickey like this!

sonastin

The thing to stop them is that racking up 2 months worth of arrears could get them evicted. You're lucky they are paying the majority of the rent - they could just stop paying rent altogether. I'm assuming that the deposit will be enough to cover the shortfall at the end of the fixed term so kick 'em out at the end of that if they don't accept that they are obliged to pay their rent in full.

ironflower

Couple of things --

1) are the tenants private or did you secure them through an agency?
2) are they working, or on benefits?

the reason I ask 1) is because if they came through a letting agency, make the agent recover the rent for you, they should be managing the property on your behalf and that includes recovering rental arrears.
If not, and they are a private tenant (though secured by you) then you still have your signed tenancy agreement. Do you have a clause or stipulation within the agreement for a case of non-paying rent?
--- typically this is usually that the LL can recover possession of the property due to non-payment of rent.
If not, you can put in writing that you intend to amend the AST, or that you wish to recover payment, within a certain period of time.

Put it in writing, give them a period of time (7-14 days perhaps) and you have the option of Section 21 Notice if needs be. That usually is persuasive enough.

The reason I ask 2) is, if they are working, do as above.
If not, and their rent is paid via the LHA / Council, you can request the full rent entitlement to come direct to you (the LL) if it is more than 8 weeks in arrears.

Hope that helps.

roses

Why should a landlord feel lucky that the tenant is paying any rent at all? It's the tenants legal obligation to pay.

It's quite simple, they signed a contract to pay £460 and they are not paying £460. I'd send them a letter by recorded delivery then deduct it from the deposit at the end if they don't comply.

sonastin

roses wrote: »

Why should a landlord feel lucky that the tenant is paying any rent at all? It's the tenants legal obligation to pay.

Because the unlucky landlords find themselves lumbered with tenants that pay nothing and have a much bigger fight to get what they are entitled to. I'd be much happier with a £120 shortfall that can be claimed from the deposit than no rent, a court battle with fees and bailiffs and a trashed property at the end of the process.

The REALLY lucky landlords get good tenants who abide by the terms of their tenancy agreements, but those ones rarely come on here to get advice on what to do about their tenants

ironflower

sonastin wrote: »

I'd be much happier with a £120 shortfall that can be claimed from the deposit than no rent, a court battle with fees and bailiffs and a trashed property at the end of the process.

ouch -- talking from experience? I hope not!!

I would say sometimes it's down to luck, sometimes it's down to the agent. A reputable agent who truly has the Investor's interests at heart looks at doing a credit check, securing a guarantor for the property and does a home visit with the prospective tenant in order to examine the state of their current abode.
Interesting what a cup of tea and kitkat in their living room will teach you