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Non paying tenants
mike00_2
Posts: 20 Forumite
My mother and her partner have a property. Three months ago they let it under a short term tenancy agreement for six months total. The tenants are claiming housing benefit, to 'top up' to the agreed rental price had agreed to pay an extra amount also.
Long story short the tenants have only paid 'the top' portion once and the cheques from the 'housing' haven't been paid to my mother at all.
Under the conditions of the agreement they have broken the contract by not making payment.
Clearly the best option would be get rid of the tenants and either try to reclaim the moneys by small claims court(?) or chalk it down to experience.
My question is in what are the rights on both sides?
Can anyone see a practical solution or has anyone had this problem themselves?
I take it you can't just change the locks and throw the tenants possessions into the street. Equally my mother is still in full time occupation at 66 and needs the rental income.
Long story short the tenants have only paid 'the top' portion once and the cheques from the 'housing' haven't been paid to my mother at all.
Under the conditions of the agreement they have broken the contract by not making payment.
Clearly the best option would be get rid of the tenants and either try to reclaim the moneys by small claims court(?) or chalk it down to experience.
My question is in what are the rights on both sides?
Can anyone see a practical solution or has anyone had this problem themselves?
I take it you can't just change the locks and throw the tenants possessions into the street. Equally my mother is still in full time occupation at 66 and needs the rental income.
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Comments
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It might be an idea to post the question up on http://landlordzone.co.uk/ as well.0
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Was it agreed that Housing Benefit would be paid direct to your mother? The usual arrangement now is for it to go to tenants to pay their LL themselves. If this was not set up with the Benefit office, then payment has gone to the tenant. Incidentally, it can take up to 8 weeks for new HB claims to be processed, so it is possible the payments haven't even been made yet!
No you cannot just throw them out - I take it that was in jest
You need to issue notice, then apply to courts for possession order, then maybe even get bailiffs involved to remove them.
How much rent is owing? When did tenancy actually start? I assume its in England/Wales (laws differ in Scotland)? Was a deposit taken and if so, is it protected in a government scheme?
Can you or your mother contact the HB office to verify that a claim has been made? You can request direct payment to LL after tenant is 8 weeks behind; some councils will even do this sooner.0 -
Is the rental property in England/Wales?
What date (dd/mm/yy) did the fixed term commence?
Is rent payable monthly/weekly, and does contract specify rent is due in advance?
How much rent is owing and unpaid? (e.g. if rent is payable monthly in advance on the 1st of the month, and T does not pay on 1st Feb and again doesn't pay on 1st March, then on 2nd March there will be two months owing and unpaid).
Did T pay a deposit and, if so, was it protected in a scheme and the prescribed information provided to T?0 -
Was it agreed that Housing Benefit would be paid direct to your mother? The usual arrangement now is for it to go to tenants to pay their LL themselves. If this was not set up with the Benefit office, then payment has gone to the tenant. Incidentally, it can take up to 8 weeks for new HB claims to be processed, so it is possible the payments haven't even been made yet!
No you cannot just throw them out - I take it that was in jest You need to issue notice, then apply to courts for possession order, then maybe even get bailiffs involved to remove them.
How much rent is owing? When did tenancy actually start? I assume its in England/Wales (laws differ in Scotland)? Was a deposit taken and if so, is it protected in a government scheme?
Can you or your mother contact the HB office to verify that a claim has been made? You can request direct payment to LL after tenant is 8 weeks behind; some councils will even do this sooner.
As you say the cheques would have gone to the tenant who would then make payment to my mother, she has spoken to the Housing Department and they say that three cheques have been sent out but are reluctant to give any more info ( amounts, dates etc).
The amount owing is for the first three months of the six month agreement and yes all parties are in in England.
She is now going through the process of of having the cheques sent to her directly.
As the incoming tenant didn't have the cash up front for a deposit she agreed to payment of deposit to be built into the 'top up' portion as described above.
The eviction was in jest (just) but as you describe the process with the courts it might be best to bite the bullet and just let the agreement expire and start over with new tenants as she is half way through the term and it might be better to go down a less antagonistic route?0 -
Is the rental property in England/Wales?
England
What date (dd/mm/yy) did the fixed term commence?
28/03/11
Is rent payable monthly/weekly, and does contract specify rent is due in advance?
Monthly in arrears by housing benefit.
How much rent is owing and unpaid? (e.g. if rent is payable monthly in advance on the 1st of the month, and T does not pay on 1st Feb and again doesn't pay on 1st March, then on 2nd March there will be two months owing and unpaid).
Two months not paid, three months in arrears.
Did T pay a deposit and, if so, was it protected in a scheme and the prescribed information provided to T?
As described above 'top up' portion only paid once.
Thanks for your interest.0 -
No. You must serve notice on the tenant. The T is not obliged to vacate at fixed term expiry. When the fixed term expires a statutory periodic tenancy will automatically arise (a.k.a. rolling contract) if the T remains in occupation.The amount owing is for the first three months of the six month agreement and yes all parties are in in England....
The eviction was in jest (just) but as you describe the process with the courts it might be best to bite the bullet and just let the agreement expire and start over with new tenants as she is half way through the term and it might be better to go down a less antagonistic route?
Serve a s.8 notice citing grounds 8, 10 & 11, and apply for possession after the notice expires. Ground 8 (which applies when there is at least two months' rent owing and unpaid - when rent is payable monthly) is a mandatory ground, meaning that if, at the time of the hearing, the T still owes this much, the court must make a possession order.
Also serve a s.21 notice as back up - however, we need to clear up the issue of whether T has paid a deposit or not first.
You can buy an 'eviction kit' at http://www.landlordlaw.co.uk/open/std/landlord-law-online-kit-c0 -
No, I mean what does it say in the tenancy agreement? When HB payments are made is irrelevant.Is rent payable monthly/weekly, and does contract specify rent is due in advance?
Monthly in arrears by housing benefit.
Sorry, this doesn't make sense. How much rent is owing (i.e. the contract says £x is payable on [date] of the month) and unpaid (i.e. T didn't pay it on the due date).Two months not paid, three months in arrears.0 -
As the incoming tenant didn't have the cash up front for a deposit she agreed to payment of deposit to be built into the 'top up' portion as described above....
...As described above 'top up' portion only paid once.
Please clarify. Are you saying that the contract says rent is £X per month, plus £Y per month deposit payment? (I don't think you mean this but I can't figure out what else you might mean).0 -
Please clarify. Are you saying that the contract says rent is £X per month, plus £Y per month deposit payment? (I don't think you mean this but I can't figure out what else you might mean).
Hi may_fair,
sorry to take so long to reply, ''computer says no'' (damn thing overheated and crashed on me)! I had started to reply with the wording from the document but lost it when it crashed and now I can't raise anyone at my mothers.
Unfortunately you got it right with your above assumption. Insert hugely exasperated icon!
T moved in on 28/03/11 first payment of £495 rent plus £83.33 deposit first instalment (6 x £83.33= £500 deposit) so £578.33 was expected in total 28/04/11.
The same was scheduled to be paid on 28/05/11
So in total £1156.66 should have been received.
The only moneys to be paid have been £128.33 this is one months deposit instalment and the difference between the rent and housing benefit £45 so in effect no rent apart from this has been paid.0 -
What does the contract say about rent?T moved in on 28/03/11 first payment of £495 rent plus £83.33 deposit first instalment (6 x £83.33= £500 deposit) so £578.33 was expected in total 28/04/11.
The same was scheduled to be paid on 28/05/11
So in total £1156.66 should have been received.
The only moneys to be paid have been £128.33 this is one months deposit instalment and the difference between the rent and housing benefit £45 so in effect no rent apart from this has been paid.
Does it say rent is £495 pcm payable in advance on the 28th of the month the first payment to be received in cleared funds by 28th March 2011? If not, what does it say?
And does it say in the contract that the deposit payments are due every month?
Are you saying that your mother allowed T to move in without paying a month's rent up front (in addition to not taking a deposit)?0
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