Joint Tenancy (J&S liability question)

drshadrack

I hope someone might be able to offer some advice on this.

The situation: Student house of 5 - all signed up to the joint tenancy agreement - one student has left course and is not able to pay their rent. Landlord has rejected that student's offer to pay down the debt in instalments of £25 per week.

It seems pretty straightforward that J & S liability can be used in circumstances where a tenant defaults but I am keen to understand what steps the landlord would first have to take to get to the stage where they can use the J & S agreement clause to collect from the other tenants?

To my mind if the 'defaulting' tenant has offered to pay, albeit in lower instalments, a debt has not necessarily crystallised and the landlord must first exhaust this avenue before trying to recover monies from the other tenants.

The father of one of the other tenants is concerned that a failure to resolve the issue could result in a CCJ against his son's name and is eager to accede to the landlord's demands for a quicker settlement which would involve all tenants chipping in. However, I believe that we are nowhere near that stage yet and do not want to readily hand over money unneccessarily.

Does the landlord not have to at least try to collect from the defaulting tenant, pursue them through the courts etc. before they can invoke the J & S clause?

I have also suggested that the defaulting tenant continue to pay @ £25 per week throughout this period on the basis that the landlord is tacitly accepting the payment plan if they do not hand the monies back.

Any thoughts appreciated

MEM62

The Landlord will go after the easiest route to the money. If that is by utilising the J&S liability of the others party to the contract they that is what he will do. Unless expressly provided for in the contract there is no obligation on the Landlord to take anything other than 'reasonable' measures to collect from the individual. No doubt you and the Landlord will have different views on what is reasonable but do not expect that you can force him to go to the trouble and expense of pursuing a CCJ or invoking debt collectors.

Of course, the same measures are open to you as they are to the Landlord. Therefore you can pursue the individual to recover any losses you suffer as a result of their defaulting on the lease.

Unfortunately, these are the kind of problems you sign up for when entering J&S arrangements of this type.

drshadrack

Many thanks for the response

So, in essence, you are saying that if nobody volunteers to pay he will have to pursue all/some tenants separately through the courts. It may then be that the court rules that they should accept the offer made by the defaulting tenant?

I have suggested that the defaulting tenant just commences paying per their offer. By the time we reach the stage where a hearing is required it may be that the debt is almost paid off.

nkkingston

The whole point of J&S is that you're all agreeing to cover the whole amount together. You are all equally responsible for this money, not just the defaulting tenant, and a court is likely to see it the same way. Are you covering the whole of the rent between you at the moment? Otherwise, your main concern isn't a CCJ, it's eviction under section 8.

Guest101

drshadrack wrote: »

I hope someone might be able to offer some advice on this.

The situation: Student house of 5 - all signed up to the joint tenancy agreement - one student has left course and is not able to pay their rent. Landlord has rejected that student's offer to pay down the debt in instalments of £25 per week.

It seems pretty straightforward that J & S liability can be used in circumstances where a tenant defaults but I am keen to understand what steps the landlord would first have to take to get to the stage where they can use the J & S agreement clause to collect from the other tenants? - None whatsoever. You are all one tenant for the legal principle, you each owe the full rent. He could ask you personally to pay the rent on the whole property.

To my mind if the 'defaulting' tenant has offered to pay, albeit in lower instalments, a debt has not necessarily crystallised and the landlord must first exhaust this avenue before trying to recover monies from the other tenants. - Nope. One legal tenant, who happens to be 5 people.

The father of one of the other tenants is concerned that a failure to resolve the issue could result in a CCJ against his son's name and is eager to accede to the landlord's demands for a quicker settlement which would involve all tenants chipping in. - Or he could pay the whole thing. Or learn how a CCJ actually works... However, I believe that we are nowhere near that stage yet and do not want to readily hand over money unneccessarily. - You were at this stage the day you moved in.

Does the landlord not have to at least try to collect from the defaulting tenant, pursue them through the courts etc. before they can invoke the J & S clause? - no. You are all a defaulting tenant.

I have also suggested that the defaulting tenant continue to pay @ £25 per week throughout this period on the basis that the landlord is tacitly accepting the payment plan if they do not hand the monies back. - irrelevant. The rent is owed. Fail to pay and he can choose to take anyone of you to court

Any thoughts appreciated

get a lodger to cover the rent

Guest101

drshadrack wrote: »

Many thanks for the response

So, in essence, you are saying that if nobody volunteers to pay he will have to pursue all/some tenants separately through the courts. It may then be that the court rules that they should accept the offer made by the defaulting tenant? - No. the court will order full payment (and potentially eviction)

I have suggested that the defaulting tenant just commences paying per their offer. By the time we reach the stage where a hearing is required it may be that the debt is almost paid off.

Perhaps. But what kind of reference do you expect?

molerat

Start date of tenancy ?
End date of tenancy ?
Monthly rent ?
Amount outstanding ?

drshadrack

[FONT=&quot]Thank you for all your response. I see my wishful thinking arguments have been wholly dismantled![/FONT]
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[FONT=&quot]Molerat -
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[FONT=&quot]Tenancy = 1 July 16 – 30 June 17
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[FONT=&quot]Outstanding = £2,400
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[FONT=&quot]Tenants deposits will reduce the o/s to £1,600
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[FONT=&quot]Monthly rent is £345 or thereabouts
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[FONT=&quot]
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[FONT=&quot]Thanks in advance
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Guest101

drshadrack wrote: »

[FONT=&quot]Thank you for all your response. I see my wishful thinking arguments have been wholly dismantled![/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Molerat -
[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Tenancy = 1 July 16 – 30 June 17
[/FONT]
[FONT=&quot]Outstanding = £2,400
[/FONT]
[FONT=&quot]Tenants deposits will reduce the o/s to £1,600 - Assuming you get the deposit back?
[/FONT]
[FONT=&quot]Monthly rent is £345 or thereabouts - No the monthly rent is not £345 or there abouts it's presumably £1725.
[/FONT]
[FONT=&quot]
[/FONT]
[FONT=&quot]Thanks in advance
[/FONT]

EACH person owes the FULL rent.

molerat

With those dates and outstanding amount it is unlikely that you will be evicted before the end of your tenancy.

The worry then is that you (each of you) could be taken to court after the end of your tenancy and unless you ensure the LL has written details of your new address you (all of you) could get a CCJ in your absence which could stuff (all of) your credit file(s) for 6 years.

The missing tenant's share has not been paid for around 7 months ! Why have you not tried to find someone to take their place ?

Guest101

molerat wrote: »

With those dates and outstanding amount it is unlikely that you will be evicted before the end of your tenancy. - they could be evicted in weeks, since s.8 notice in mandatory once 2 months rent is outstanding.

The worry then is that you (each of you) could be taken to court after the end of your tenancy and unless you ensure the LL has written details of your new address you (all of you) could get a CCJ in your absence which could stuff (all of) your credit file(s) for 6 years.

The missing tenant's share has not been paid for around 7 months ! Why have you not tried to find someone to take their place ?

Totally agree, for most of the tenancy the person hasn't been there, nor paid rent. Frankly I would have evicted months ago