Tenant not paid rent - precautionary steps to take?

lovinituk

After many years of trouble free letting our tenant contacted us today to say they can't pay the rent this month. There are guarantors in place so we have asked the tenant to ask one of the guarantors to cover this months rent and we are awaiting an answer. I'm fairly confident they will come up with it but I'm not sure what steps we should start to take if they don't.

Do we issue a S21 now just in case? Can anybody advise what steps we should take to cover ourselves or point me in the direction of a guide?

The tenancy has been running as a periodic for some time.

Many thanks

G_M

The first step, assuming there are now arrears, is to write to the tenant, AND the guarantors, with a rent statement showing the arrears and asking that they be cleared.

Next step is a letter to the guarantors reminding them of their obligation/commitment.

Whether you choose to issue a S21 as well is up to you, and depends what you think the longer term outcome will be. If you think this is the start of a slippery slope, and you want new tenants, then issue.

If you basically trust the tenants, think this is a temporary problem, and have confidence the guarantors will sort things, then try to work with the tenants to get through this.

whitewing

Have they given you any particular reason why the situation occurred? What was said or not said may give you an indication of whether it is a temporary blip.

tbs624

The good bit is that your T has broached the subject with you rather than just failing to pay on time & remaining silent but if the rent is late and the T cannot pay up then don't "ask the T to ask their guarantor" to cough up - you contact the guarantor direct at the same time as writing to the T with the Rent Statement, as G_M says.


Edit: if this property is in Eng/Wales ( & tenancy agreement signed post April 2007) did you scheme register the tenancy deposit and provide the T with the scheme's prescribed information? If not, then do so becuase otherwise any S21 you serve will be invalid.

lovinituk

whitewing wrote: »

Have they given you any particular reason why the situation occurred? What was said or not said may give you an indication of whether it is a temporary blip.

First of all they said it was all spent on bills but then said 'it was complicated'! They have paid on time every months for over 4 years without any problems but I'm really not sure if this is a blip or not so want to do everything right in case the worst happens.

lovinituk

G_M wrote: »

The first step, assuming there are now arrears, is to write to the tenant, AND the guarantors, with a rent statement showing the arrears and asking that they be cleared.

Next step is a letter to the guarantors reminding them of their obligation/commitment.

Whether you choose to issue a S21 as well is up to you, and depends what you think the longer term outcome will be. If you think this is the start of a slippery slope, and you want new tenants, then issue.

If you basically trust the tenants, think this is a temporary problem, and have confidence the guarantors will sort things, then try to work with the tenants to get through this.

Thanks, will sort out the relevant letters ready to go if they don't come up with the rent which is not actually due until the 26th.

Even if we 'think' the guarantors will come up with the money, is it worth issuing the S21 anyway just in case? We've always had a good relationship with them but in situations like this, it can change pretty quickly!!

tbs624 wrote: »

The good bit is that your T has broached the subject with you rather than just failing to pay on time & remaining silent

Agreed - particularly seeing as its not due for a couple more days.

tbs624 wrote: »

but if the rent is late and the T cannot pay up then don't "ask the T to ask their guarantor" to cough up - you contact the guarantor direct at the same time as writing to the T with the Rent Statement, as G_M says.

Point taken - will prepare letters now.

tbs624 wrote: »

Edit: if this property is in Eng/Wales ( & tenancy agreement signed post April 2007) did you scheme register the tenancy deposit and provide the T with the scheme's prescribed information? If not, then do so becuase otherwise any S21 you serve will be invalid.

All sorted.

BitterAndTwisted

If your tenants are suffering a temporary difficulty: and it could be due to loss of a job and consequent delay in applying for or receiving a contribution of LHA towards their rent, the one way to almost guarantee that the rent does not get paid is to issue a Section 21 Notice. This would leave the tenants with little choice other having to prepare for their eviction and ensuring they have enough savings to finance their onward move. Under the circumstances I would probably not issue a S21 in the first instance. Much better to communicate with the tenants directly and find out exactly why they will be unable to pay the rent due on the 26th and whether that problem is expected to be on-going.

Four years of continuous rent regularly and reliably paid the whole time makes these valuable tenants imo. Valuable tenants should be retained if at all possible.

poppysarah

The fact they've made contact before it happens shows they are concerned too!

If they've been a tenant for years then discussing with them and putting things in writing after that seems the best way forward.

It might be a temporary blip.

red_devil

lovinituk wrote: »

After many years of trouble free letting our tenant contacted us today to say they can't pay the rent this month. There are guarantors in place so we have asked the tenant to ask one of the guarantors to cover this months rent and we are awaiting an answer. I'm fairly confident they will come up with it but I'm not sure what steps we should start to take if they don't.

Do we issue a S21 now just in case? Can anybody advise what steps we should take to cover ourselves or point me in the direction of a guide?

The tenancy has been running as a periodic for some time.

Many thanks

So you have had a reliable tenant looking after your property for years and now because they MIGHT default on one months rent you are looking to get them out.

I think its disgusting:mad: and it just confirms to me what they say about landlords. How do you know the next person isnt going to come with a few faults. Where is the thanks for the rent you have had all these years? Please value your tenant you couldnt earn any money without them?

lovinituk

BitterAndTwisted wrote: »

Four years of continuous rent regularly and reliably paid the whole time makes these valuable tenants imo. Valuable tenants should be retained if at all possible.

poppysarah wrote: »

If they've been a tenant for years then discussing with them and putting things in writing after that seems the best way forward.

Absolutely agree. The first thing I said to my wife was I hope we don't lose them over this!

Looks like I jumped the gun and started panicking way too early. They have managed to get a friend to cover the payment (rather than a guarantor for some reason!) and have assured us it will never happen again, which I am inclined to believe.

Thanks for the input from everyone.

lovinituk

red_devil wrote: »

garbage

Luckily I don't give a toss about your input!! I didn't say once that I wanted them out rather that I wanted to prepare for the worst case scenario. You know nothing about what sort of landlord I am so jog on sunshine and go and abuse someone else!!