Tenant has paid rent to someone else's account!

Financial_Virgin

My tenant used to go into the bank to pay the rent to my account. A few months ago he went into the branch to set up a direct debit. However, the next months rent did not reach my account. He has said it has been taken from his account and the bank have informed him it has gone into someone else's account. The next month still no payment even though he had the chance to change the direct debit. The bank then apparently told him the payment 'is floating around' i.e. it's not reached any one's account.

He has paid this months rent by going into the bank.

What can I do?

I get the feeling i'm being taken for a ride and I can't ask his bank about this due to data protection!

19lottie82

why did this take you "a few months" to notice?

you could ask you T for proof that he paid it in, he should have a reciept or a bank statement?

I THINK that if he genuinely has paid it in to someone elses acc by mistake, then that's his problem, not yours. Tell him you want your rent.

DVardysShadow

If tenant set up a Direct Debit, it is for you to make the collection, if you are able to collect Direct Debits.

More likely he set up a Standing Order [if he is not taking the mick]. You need to be clear on the difference between SO and DD.

If it was SO, it is your tenant's responsibility to sort it out with his bank and you should not get yourself the least bit involved in his banking

DRP

Clearly you are entitled to the whole sum. Whether he can prove he made the (wrong) payment seems irrelevant to me.

If you feel some sympathy for the tenant, perhaps showing some goodwill for the first month is fair (perhaps a half payment?) , but subsequent kok-ups are just tough luck on the tenant.

Financial_Virgin

It didn't take me a few months to notice it it was a couple of weeks.

I have tried to be as understanding and supportive as possible hence the length of time which has passed but as I said I am now concerned they are taking advantage of my kindness.

tbs624

DRP wrote: »

If you feel some sympathy for the tenant, perhaps showing some goodwill for the first month is fair (perhaps a half payment?)

Why on earth should a LL offer a T half rent because they can't sort their own rent payments out ( assuming that T is the one at fault/whose bank has messed up)

OP - do note what DVS says about the difference between DD and SO.

If its an SO then as LL you can print off a proforma bank instruction drawn up by you: get it filled in with the correct receiving account info and the relevant info needed from the T, including their signature, and then you personally deliver it to the T's bank.

As soon as a T starts messing about paying rent late/not at all/only in part you should send them a formal Rent Statement with a request to bring their rent payments up to date within the next 3-5 working days (keep a copy of any such correspondence)

When LLs are lazy with checking up on their rent receipts some Ts take that as a green light to take less care over whether they are meeting their tenancy commitments in full and on time

DRP

tbs624 wrote: »

Why on earth should a LL offer a T half rent because they can't sort their own rent payments out ( assuming that T is the one at fault/whose bank has messed up)

OP - do note what DVS says about the difference between DD and SO.

If its an SO then as LL you print off a form, get it filled in with the correct receiving account info and the relvant info needed from the T and then you personally deliver it to the T's bank.

As soon as an T starts messing about paying rent late/not at all/only in part you should send them a formal Rent Statement with a request to bring their rent payments up to date within the next 3-5 working days (keep a copy of any such correspondence)

When LLs are lazy with checking up on their rent receipts some Ts take that as a green light to take less care over whether they are meeting their tenancy commitments in full and on time.

for the reason i stated

Thrugelmir

Financial_Virgin wrote: »

I have tried to be as understanding and supportive as possible hence the length of time which has passed but as I said I am now concerned they are taking advantage of my kindness.

How many months is the tenant in arrears now?

tbs624

DRP wrote: »

for the reason i stated

A LL being "sympathetic" to a T having problems with sorting out his rent payments on time does not necessitate the acceptance of half payment of rent, as a "goodwill gesture".

Goodwill gestures are usually made by the person who is "at fault".Unless the LL has provided incorrect details to the T ( and previoius payment suggests not) then if there is any goodwill gesture to be made, perhaps it would be more appropriate for it to be coming from the late paying/non-paying T to the LL.

bitsandpieces

If you want to be supportive, you could point the tenant towards CAB for help recovering their money from the bank. If you feel like being very helpful - and cashflow isn't a problem for you - you could offer to let them pay the arrears back in instalments; make clear, though, that you expect instalments to be met.

I don't see how the tenant's problems with the bank are your concern, though. I'd be careful not to make this your problem: by all means be supportive, but whether the bank or the tenant or some computer halfway over the world messed up doesn't affect the fact that rent is owed.

tbs624

Financial_Virgin wrote: »

It didn't take me a few months to notice it it was a couple of weeks.
.

Your OP suggests that the matter has been dragging on:

Financial_Virgin wrote: »

. A few months ago he went into the branch to set up a direct debit. However, the next months rent did not reach my account. He has said it has been taken from his account and the bank have informed him it has gone into someone else's account. The next month still no payment even though he had the chance to change the direct debit. The bank then apparently told him the payment 'is floating around' i.e. it's not reached any one's account.

He has paid this months rent by going into the bank.
!

Rent Statement needed! As per Thrugelmir's post, how much rent actually remains unpaid ?