Advice needed please: tenant keeps paying rent late

MamaMoo_2

It might also be worth bearing in mind that if your relative cannot cope with the rental income being late, then evicting the tenant may not be the best way forward as there will be a period where the property is vacant, plus any fees for marketing the property and preparing it for the next tenant.
Late rent is better than none, try speaking to the tenant first and see what's causing the lateness and try to find a mutually acceptable conclusion.

trailingspouse

Is the rent paid regularly? It might be late, but is it consistently late? For example, if it's due on the 20th, is it always paid by the 30th? If that's the case, the simplest solution would be to change the payment date, as it would seem as though the tenant is needing to wait for pay day.

Emanef

trailingspouse wrote: »

Is the rent paid regularly? It might be late, but is it consistently late? For example, if it's due on the 20th, is it always paid by the 30th? If that's the case, the simplest solution would be to change the payment date, as it would seem as though the tenant is needing to wait for pay day.

From what she's given me, it does look like they've been up to a week late since April, with a few being part payments (on two occasions as late as two weeks). If she suggests that, should she ask them to make a pro-rata payment for the period from the rent date to the new rent date (eg 20th-30th= one month/10 days)?

stator

You could always consider a rental agent that guarantees payment on time, regardless of the tenant. Of course that means you receive less money as the agent takes a higher cut, but it would guarantee it's on time and you wouldn't have to worry about it being empty.

Pixie5740

stator wrote: »

You could always consider a rental agent that guarantees payment on time, regardless of the tenant. Of course that means you receive less money as the agent takes a higher cut, but it would guarantee it's on time and you wouldn't have to worry about it being empty.

I wouldn't touch a rent guaranteed scheme with a 10 foot bargepole. Entering into a guaranteed rent scheme isn't the same as having an AST with a tenant and getting the property back can be troublesome. Also, as the LA is guaranteeing the rent they will be desperate to avoid void periods so could end up putting any old Tom, !!!!!! or Harry into the property. Taking on any old tenant without doing proper checks and referencing to avoid void periods is a false economy.

G_M

Emanef wrote: »

One other question actually. When I asked her about the notice period they have to give she said it was only two weeks. From what I understand of ASTs they are statutory agreements and things like maximum/minimum notice periods are already defined and additional clauses often aren't worth the ink they're written with?/............ Would the two weeks be enforceable, or would the normal two months (?) of AST law apply?

You are right and she (and her dodgy tenancy agreement!) are wrong.

As I said in post above:

Just to add, if you do go down the eviction route, do you know how?

* S21 Notice. Timing? Validity?

* S8 Ground 8 Notice; conditions?

* S8 Ground 10 Notice; uncertainty?

Apparantly not!

This may help:

Ending/Renewing an AST (what happens when the Fixed Term ends?)(What is a Periodic Tenancy?)(How can a LL remove a tenant?)(How can a tenant end a tenancy?)

GobbledyGook

If she's determined not to serve notice or kick them out then has she actually spoken to them to ask why it's late?

If they've changed jobs or been made redundant and their income now comes in on the 24th then she could send as many texts or letters as she likes reminding them that it needs to be paid on the 19th as she likes - if they don't have it then they can't pay it.

It sounds like she needs to sit down and get proper advice. The AST is wrong, she has no cash contingency (does she realise that there are things she is legally obliged to do? What is she going to do if the boiler starts belting out CO & needs a repair?) and she if she doesn't know what she can do then it seems she's not a very knowledgeable landlord.

For her own sake she needs to do some reading and find herself a way to build a cash buffer. Rent is not guaranteed and if her tenants are in financial trouble then she could be faced with further issues if they stop paying - it can be expensive to get people out!

Emanef

Thanks again guys. I've advised her to write to the tenants listing the regular late payments (it's been nearly every month in the last six) and politely advising them that they need to pay on time, etc.

I've also advised her to be aware that she should give them two months notice if/when she wants to end it. I presume the two months notice relates to both parties wanting to end it?

I've given her the link to that post GM has given so she can read up herself as well.

Thanks again.

G_M

Emanef wrote: »

I've also advised her to be aware that she should give them two months notice if/when she wants to end it. I presume the two months notice relates to both parties wanting to end it?

I've given her the link to that post GM has given so she can read up herself as well.

Why give her erroneous advice?

Either just give her my link and let her work it out, or read it yourself and then give her correct advice.

Emanef

Eh? That link says two calendar months notice to end an assured periodic? I thought you said the two weeks would not be enforceable and the two months of AST law would be correct?