Tenant not paying rent

tbs624

vax2002 wrote: »

Now you know why most private landlords dont accept housing benefit claimants ,..

Got to be fair Vax2002 - not all LHA/HB claimants behave like this. They are not some kind of homogeneous underclass hell bent on screwing over their LLs.

There are many LLs who run very successful letting businesses with their whole portfolio let out to those on low incomes and/or in receipt of LHA, and there are plenty of LLs who have effectively been stiffed by a T who earns good money and who came with good references.

timbo58

As others have rightly said however sympathetic you are feeling towards the hapless parent they have signed as guarantor and this is a buisness arrangement first and foremost.
Write them a pleasant and polite letter but insist they fulfil their legal obligations and meanwhile issue the S8 and S21, cover yourself now before things get worse.

1981trouble

TBH, we have tried to work with them for the last month and everything they were saying was confirmed by the council - I was of the opinion it made sense to have a tenant paying something was better than nothing but now they are not cooperating I am putting the business hat on.

Deposit is registered. Everything has been in writing regarding alternative arrangements that we have agreed to - letters sent to them as was reminders about arrears. Not sure about whether formal rent statement has been issued - will check with agency, there was one for Nov which we were given a copy of but since no payments since then we haven't been given anything.

A couple of maintenence issues have arisen (repointing a wall as it is causing damp and boiler stopped working but was repaired within 24hrs) which we are currently arranging for repairs/quotes with so hopefully they can't play that card.

Initially we were working with the guarantor but have now instructed the agent to issue the S8 for both tenants and guarantor.

We have previously had hb tenants in and they were brilliant unfortunately this time not so lucky. The nature of the area and house type means that they are a significant chunk of the rental market so to refuse them would limit our audience greatly. Agency did do checks, references and guarantor with them and the agency were upfront with us about the results (as hb/non working the credit checks would not be great) and we gave the final agreement - will def have to review this for the next tenant.

1981trouble

sonastin wrote: »

So are you saying that HB can only be paid direct to the LL if HB that the T has received is not paid to the LL?

I would have assumed that if the T has rent arrears of more than 8 weeks and the T receives HB then the HB could be paid direct to the LL regardless of when the T became eligible for HB. But it is not an area I am familiar with so happy to be corrected.

That was what the council told me when I first contacted them in January - I haven't challenged it any further as we were waiting for it all to be approved but I may do so now.

tbs624

1981trouble wrote: »

TBH, we have tried to work with them for the last month and everything they were saying was confirmed by the council - I was of the opinion it made sense to have a tenant paying something was better than nothing ..

Why have a guarantor signed up if you are not going to invoke the guarantor agreement?

1981trouble wrote: »

Deposit is registered.

It is important that you check that the T was also given the schemes "prescribed information"

1981trouble wrote: »

T Not sure about whether formal rent statement has been issued - will check with agency, there was one for Nov which we were given a copy of but since no payments since then we haven't been given anything.

A Rent Statment has to be updated regularly and has to show the whole of the tenancy to date - Rent Due Dates, Payments Received and on what date, and balance currently outstanding.

1981trouble wrote: »

TA couple of maintenence issues have arisen (repointing a wall as it is causing damp and boiler stopped working but was repaired within 24hrs) which we are currently arranging for repairs/quotes with so hopefully they can't play that card.

That's good because some LLs play a foolish game of tit for tat over rent arrears/main & repairs and it backfires on them. You still have to meet your statutory repairing obligations even if the T fails to meet their rent obligations

1981trouble wrote: »

TWe have previously had hb tenants in and they were brilliant unfortunately this time not so lucky. The nature of the area and house type means that they are a significant chunk of the rental market so to refuse them would limit our audience greatly. Agency did do checks, references and guarantor with them and the agency were upfront with us about the results (as hb/non working the credit checks would not be great) and we gave the final agreement - will def have to review this for the next tenant.

As part of that review make sure that you and the LA agree to invoke the guarantor agreement at the earliest possible stage.

vax2002

First point of call is to start instructing the agent.
Not the tail wagging the dog, they work for you.
I would instruct them to invoice the guarantor, if they pay, why bother with s21 until the end of tenancy ? if the guarantor keeps paying why bother with it at all as long as you get your rent.
when you talk of business hats you have to leave the revenge hat off or things get twisted a bit.
The focus must remain the money !.
Get the agent to invoice the Guarantor for the outstanding rent immediately, in todays post, tell them that is an instruction and order, not a request..

tbs624

1981trouble wrote: »

Initially we were working with the guarantor...

What does that sentence mean? Did you formally request payment of the rent by the parents as guarantors and did they pay it? Any of it?

1981trouble

Thanks for clarifying those queries - I will raise those with the agency and double check what has been done so far. I have sent the agency an email now asking about the S8 and will follow that with a letter for the guarantor.

You are right, I need to man up a bit and take charge of the letting agent rather than letting them dictate it a bit - with it being the first time of issues I was letting them lead as I was still working it out myself but I think I have most of my head around the legal stuff to ensure it is in place.

1981trouble

tbs624 wrote: »

What does that sentence mean? Did you formally request payment of the rent by the parents as guarantors and did they pay it? Any of it?

When I say working with the guarantor, we were in regular contact with them (they were overseas for some of it) and after every contact with them we get a response of sorts from the tenant (manage to make contact, confirmation of council status etc), just no money. The guarantor initially was going round to the house/ringing them to chase it also. I had hoped that would be enough to get the tenant paying but it seems not - I am fairly certain once we invoice the guarantor that they may become less cooperative with us - but whilst cooperation is useful it isn't a form of currency so time to buck up.

vax2002

the guarentor needs a dated INVOICE, not a "letter" with a DEMAND for payment and a timescale for Payment and they need a new one every time the rent is due and not paid.
Letters are passive requests, they signed up as guarantors, they owe the rent.
INVOICE + DEMAND