Good tenant stopped paying rent

rdwarr

I own a flat which I've been renting out (via a lettings agent) for the past sixteen years, The same tenant has been in occupation all that time and has always paid the rent on time. Market rent is probably around £700pm but he's paying £450. The place needs redecorating (it's not nasty, just a bit "tired" - e.g. he smokes a lot) but I've said that, if I do that, I'll need to raise the rent a bit to pay for it. He's always seemed happy with that.
Anyway, he's now stopped paying the rent at all citing a "lean period" with work as the reason. He's asked for a rent reduction and if he can use his deposit (£400) to make up some of the arrears. I've offered him a rent-free month if he makes up the arrears over the next six months but have had no response.
Because he's been a good tenant I haven't been pushing too much but I do need the rental income to live on myself (as well as pay the mortgage on the flat). Currently two months in arrears with another payment due soon. I'm beginning to think he's not going to pay anything at all from now on but still don't wan't to play "nasty landlord".
How long should I leave it before getting a bit tougher?

Dan-Dan

How long should you leave it?
About the amount of time it takes you to blink, your being done over by a `pro` tenant

HappyMJ

rdwarr wrote: »

I own a flat which I've been renting out (via a lettings agent) for the past sixteen years, The same tenant has been in occupation all that time and has always paid the rent on time. Market rent is probably around £700pm but he's paying £450. The place needs redecorating (it's not nasty, just a bit "tired" - e.g. he smokes a lot) but I've said that, if I do that, I'll need to raise the rent a bit to pay for it. He's always seemed happy with that.
Anyway, he's now stopped paying the rent at all citing a "lean period" with work as the reason. He's asked for a rent reduction and if he can use his deposit (£400) to make up some of the arrears. I've offered him a rent-free month if he makes up the arrears over the next six months but have had no response.
Because he's been a good tenant I haven't been pushing too much but I do need the rental income to live on myself (as well as pay the mortgage on the flat). Currently two months in arrears with another payment due soon. I'm beginning to think he's not going to pay anything at all from now on but still don't wan't to play "nasty landlord".
How long should I leave it before getting a bit tougher?

One day. Ring him now and demand the rent in full by 9AM in the morning or you will issue eviction proceedings at 9.01AM.

This is a business not a charity.

He can afford to smoke and damage your property and you're allowing the tenant to pay the rent as it was 16 years ago....why???

Issue Section 21 notice get tenant out, renovate flat and get it on the market at £700 per month. Even if you recover none of the arrears you'll get your money within a year.

Reliable tenants are worth having but not at 70% of market value. I would allow the rent to fall to 95% of market value maybe even 90% for a good reliable tenant but certainly not 70%.

Pixie5740

Are you in England or Wales?

Did the tenant move in 16 years ago or has did he come with the property? I'm wondering if he has an AST or possibly an AT if he came with the property.

Wanting the rent to be paid doesn't make you a nasty landlord, nor does taking steps to evict a non-paying tenant. You've spoken to him, even offered him a rent-free month which is more than a lot of landlords would do. If he has an AST and you're no longer getting a response from him then perhaps it's time to issue a Section 8 (maybe a Section 21...belt and braces). You don't necessarily need to act upon the notice but you do want to protect yourself if this continues to drag on.

PasturesNew

If he's been there 16 years and is working .... then he's old enough, been resident long enough, been paying rent long enough, been working enough, etc etc etc to get his rent paid on LHA.

Tell him to claim benefits. He might not know he can claim, or how much.

If he's always worked and just doesn't have much work at the moment, he might simply assume that benefits are for those on the dole, not those who aren't working "enough" right now ... and that getting his rent paid and getting the dole are different claims.

He might just assume that it's his tough t1tty that he's not got "enough" at the moment. He should be able to get some top ups..... unless he's doing something dodgy of course.

Top ups, especially for single/working people and getting some rent paid etc etc is quite newish - and he's probably just aware of how things were, maybe, 20+ years ago when he, maybe, tried to claim something and was sent packing. Benefits are there in spadeloads compared to any experience he might've had in the past.

hazyjo

Have you redecorated/repaired at all in the time he's been there?


As above, why did you not give regular rent increases? Even just small ones? Don't really get why he's still paying the same rent.


Has he maybe been sacked/made redundant rather than it just being a 'lean period'? (Or is it his own business?) What happens when he retires (I'm guessing he's over 40, prob older, but could be wrong!)? If he can't get through this 'lean period', how will he pay you?


No, don't use his deposit. You may need that once he's gone! He owes you rent - don't reduce it, don't try to make deals with him. I'm not usually a harsh person(!) but he is totally taking the pee.


It could take 6 months to evict him - with no rent. Start NOW. Stop being so lenient.


He may have been a good tenant in the past - but today is what matters, and today he is being a tenant from hell.


Not a 'nasty landlord' so don't label yourself as that for evicting. As above, this is a business whether you like it or not. The more you suggest or offer, the more he will tie you in knots and twist your words when it ends up at court.


Jx

Cakeguts

Have a think about this. Do you think that the reason that he has stayed 16 years is because he didn't want to pay any extra rent if he moved? With that in mind he has had a good deal from you for the last few years when the rental levels have increased but his hasn't?

Unless he comes up with a way to pay the rent you are going to lose the flat through not being able to make mortgage repayments so either you will have to give him notice to leave or the bank that repossess the property will give him notice to leave.

rdwarr

Thanks for all of the speedy and supportive replies. To answer some of your questions:
- He did not come with the property but was my first tenant after I bought it. I assume he's been on a succession of ASTs.
- I have redecorated since he's been in and replaced appliances when necessary. There's newish double glazing and a new front door. However, a kitchen and bathroom refit would be in order to spruce up the place a bit.
- I agree I may be being too nice and should have done a few "little and often" rent increases in the past. I'm generally rubbish at asking people for money which is why I have an agent doing that.
- I hadn't appreciated how much I relied on the rent until it didn't turn up. It's about 15% of net household income.
- Tenant must be in his 60s now and has been working as a lorry driver in the past. If that's gone "lean" I worry he may have lost his HGV entitlement or something.

mrginge

Market rate £700 and he's getting it for £450.
Good grief.
Grow a pair for crying out loud.

casper_g

rdwarr wrote: »

- He did not come with the property but was my first tenant after I bought it. I assume he's been on a succession of ASTs.

Assume? Really?

Mojisola

rdwarr wrote: »

I own a flat which I've been renting out (via a lettings agent) for the past sixteen years,

The same tenant has been in occupation all that time

Market rent is probably around £700pm but he's paying £450.

If I'd been paying so much under the market rate for so long, I'd have been putting some money away each month for when the good times stopped!