Could/would you charge £30 for late payment?

jones12_2

My tenant has always paid the rent late - always same excuse - major health problems. Just discovered that since last year June they still owe over a months rent. Anyway to cut it short they're on rolling contract. I want new AST signed with clause to say £30 chargeable for late payments plus interest. Does anyone know by law if this is OK?

cheers!

FTBFun

Why don't you just serve them notice? They seem more hassle than they're worth.

sequence

Illegal. They can't be that bad if you haven't served notice yet.

You should be keeping on top of the rent statements, in case you have to evict for rent arrears.

G_M

And if they refuse o sign, preferring to stay on existing periodic tenancy you'll...... evict them? If so, give notice now. If not, you're obviously not that concerned.

As for the legallity. If it can to a dispute in court, you'd need to prove that £30 was what it actually cost you in admin costs etc. How did you come up with 30. rather than, say, 36?

jones12_2

sequence wrote: »

Illegal. They can't be that bad if you haven't served notice yet.

You should be keeping on top of the rent statements, in case you have to evict for rent arrears.

yeah I know, it's true i should keep on top of it. Because they "eventually" catch up with rent I give them some flexibility and not be so harsh. I know they want to stay there but rather they pay on time so I thought £30 penanlty for late payment would deter them paying rent late.
Are you saying the interest on rent owed is illegal too?

G_M

You can charge interest but the amounts involved are more trouble than it's worth. Either give notice, or live with and manage the situation.

Why are they late? Benefits received at times that don't coincide with rent dates? Change rent payment day.
Discuss the arrears and agree a timetable to clear. Confirm in writing.

Talking problems through and being flexible/sympathetic is better than getting tough if possible.

When the trust breaks down completely, better to get rid.

birkee

G_M wrote: »

You can charge interest but the amounts involved are more trouble than it's worth. Either give notice, or live with and manage the situation.

Why are they late? Benefits received at times that don't coincide with rent dates? Change rent payment day.
Discuss the arrears and agree a timetable to clear. Confirm in writing.

Talking problems through and being flexible/sympathetic is better than getting tough if possible.

When the trust breaks down completely, better to get rid.

Not a correction, more an observation.
I know what you're saying, and that's OK by me. But, surely the onus is on the tennants to manage their finances?
If negotiation can remove the problem, then I suppose that's better than having to find new tennants though.

jones12_2

They rarely pay on time but eventually do. I have been flexible and sympathetic that's why i havn't got tough. The £30 charge is suppose to be there to deter future late payments. The tenants are a pain if they stay and pain if they dont!

mlz1413

jones12 wrote: »

They rarely pay on time but eventually do. I have been flexible and sympathetic that's why i havn't got tough. The £30 charge is suppose to be there to deter future late payments. The tenants are a pain if they stay and pain if they dont!

if you have always been lax then you have encouraged them to pay you when they are ready and others who shout louder first.

rather than trying to charge them more why don't you just get firm with them? Do a statement of payments for the last year and then present it to them, you could do this at a routine inspection.

Say that you know you have always been flexible in the past but that you can no longer do this and request that they set up a standing order (you could type this out for them).

If they are late with a payment write to them straight away and enclose a standing order form. Do that for 3 months and they will probably realise that can't keep fobbing you off and will pay on time.

If they take no notice then you will have to decide if you want them long term.

BitterAndTwisted

You get your rent eventually. If you decide to evict them you would have to find new tenants and maybe risk a void and all of that would most probably cost you more than the late rent-payments have. See if you can sort something out with them or just serve them notice and be done with it.

patman99

£12 seems to be the acceptable rate for late payment fees these days. However, if they are paying by direct debit, then a clause that states 'Any fees incurred when Direct Debit payments cannot be met will be passed-on to the tenant' might work.