Tenants stopped paying and then guarantor died

Cashstrappedlandlord

I am renting out my house, so that I could move closer to work and get my son into the school near work. Tenants moved in at end of jan on a 12month assured short hold tenancy agreement. Couple are on housing benefit, which I said was ok providing they had a guarantor. Housing benefit covers all but seventy pounds of rent. Feb they were late and guarantor/girls mum paid after a week. Paid a day or so late every time since then with apology. May is almost 4weeks late. This time they don't answer calls or letters and when i wrote to say i was coming for routine inspection they were out all day. When I called guarantor after two weeks I was told she died. I have been told by a neighbour that this is true. I can not afford to pay my mortgage and new rent near work. I am having to move in with family and just want my house back now. What are my options for recovering house to move back in myself asap and getting any money back from anyone? Housing benefit will only pay me if at least 8 weeks late. Guarantor's partner said he is skint. My tenancy does include extra fees for late payment, and I've mentioned this in all my letters. I've requested deposit back from dps to helpy cash flow, but they have to agree.

Guest101

In England?

They need to be over 2 months late, IE two months in arrears, for you to issue notice. However, then you will most likely have to go to court, it's a non contest judgment, to get possesion back. However if they bring it under 2 months again, even of the day of court, then the notice becomes invalid.

You can issue notice now, for possesion at the end of 12 months, but unfortunately the same thing can happen then.

The downside to DSS tenants - not that all are like this though!

sammyjammy

You can't use their deposit to improve your own cash flow. If you want them out you have to follow the proper procedures. If they are in fixed term contract unless they are more than 8 weeks in arrears (of the full rent)there is nothing you can do to rid of them. Are they not paying any rent at all or is it just the top up?

G_M

1) is there a break clause in the tenancy agrreemnt - eg at 6 months?

2) find out who the guarantor's Executers are. Just because he died does not mean his Estate must not pay his bills!

3) A S8 Notice can be issued (to regain possession) when 2months rent is owed ie the day after the 2nd payment is missed which is a month and a day arrears. You then go tocourt and providedon the court date 2 months isstill owed, the court must grant possession.

martindow

G_M wrote: »

1)

2) find out who the guarantor's Executers are. Just because he died does not mean his Estate must not pay his bills!

I'm sure this applies to debts before the guarantor died but what happens after that?

Can the estate continue to be liable after the death? In the OP's case the tenant could stay in the OP's house with rent payments being paid indefinitely. The estate could never be wound up!

G_M

martindow wrote: »

I'm sure this applies to debts before the guarantor died but what happens after that?

Can the estate continue to be liable after the death? In the OP's case the tenant could stay in the OP's house with rent payments being paid indefinitely. The estate could never be wound up!

A good question and I'm not sure.

But I believe a contract signed before death remains binding, so imagine a guarantor Deed would also.

Anyone know for sure?

red_devil

sammyjammy wrote: »

You can't use their deposit to improve your own cash flow. If you want them out you have to follow the proper procedures. If they are in fixed term contract unless they are more than 8 weeks in arrears (of the full rent)there is nothing you can do to rid of them. Are they not paying any rent at all or is it just the top up?

sorry to hijack but does that make a difference whether they are paying all or just not the top up.. Can you be evicted for not paying the top up?

AFK_Matrix

I would also hope the OP has done the guarantor agreement corrently as well. If they haven't then they are stuck in that regard and will have to answer the questions that have been put to him so we can advise him correctly.

[Deleted User]

If a need for cash flow is pressing you're unfortunately out of luck. Eviction and recovering arrears are not at all quick processes, they can take many months...

Talk to your mortgage company right away and explain the situation -- you do have consent to let, don't you? -- and see if you can get some forgiveness for a few late payments, then try and strike a deal with the tenants. You could offer them a deal, if they leave within 2 weeks and sacrifice their entire deposit you will forgive their arrears, this is not a good solution but it's the one that you may need to consider.

You need to focus on minimising the long term impact this has on your mortgage and your credit, letting tenants get away with this sort of thing is unfortunate but you have to pick your battles.

sammyjammy

red_devil wrote: »

sorry to hijack but does that make a difference whether they are paying all or just not the top up.. Can you be evicted for not paying the top up?

If they just weren't paying the top up then it would have to accumulate to 8 weeks of the actual total weekly rent due.

red_devil

if you evict someone because they are in arrears with their rent do you ever get it recovered. I am thinking not especially if they are on benefits?