HELP - Tenants have overstayed their agreement!

pinkshoes

I would write to the tenant saying you are aware that they want a council house and therefore are issuing them an S21 eviction notice (check their deposit is protected!), but also point out to them that they need to pay their rent in full each month, otherwise you will cancel the eviction notice and issue an S8 instead for non payment of rent, and notify the council that they are making themselves intensionally homeless so they won't get a council house.

At least this way, you get your rent (hopefully), and they get their council house.

As they have a guarantor, remind them that if they fail to pay the rent, you will conctact the guarantor for the rent.

Werdnal

There is no need (or in fact no actual mechanism other than issuing a new tenancy agreement) to cancel an S21 once issued. If tenants fall behind with their rent, to the point where 2 month's value is owning, you follow up the existing S21 with an S8 notice on rent arrears grounds. The S8 may fail if the tenants pay off an amount of arrears before the hearing, so you have the S21 running in the background as a safety net. Provided it is issued correctly, served correctly and deposit protected correctly, the S21 cannot be countered by the tenant and will guarantee possession eventually!

No need to write to the tenant to explain it. Issue a valid S21 notice (no covering letter required). If rent dries up, issue a valid S8 notice. Act on whichever is relevant at the time the notice period expires. Writing letters, discussing anything with the tenant or making threats or promises over what you intend to do only muddies the waters further - and with an already confused LL, this is not recommended!