Rent to tenants with CCJ

G_M

No need to have a new contract then,

The tenancy becomes a Contractual Periodic Tenancy.

But: exact wording? is that 1 calender month? 1 tenancy period? A bit ambiguous.

Plus of course, that only applies to the tenant. The LL still has to serve a (two month) S21 Notice by law.

hoyalove

The contract clearly shows 1 month though. I understood if it is a periodic tenancy it is a month notice by law?

rtho782

hoyalove wrote: »

Thanks for the comment. I hold 6 weeks of deposit. And the tenants said they would find a guarantor. If guarantor passes referencing it would be easier I guess.
The contract says: Should the contract have become a periodic, after the fixed term, one month's notice given... etc. So we do not need to make a new contract?

You don't need to do anything. In fact, you can't do anything.

Two possible outcomes:

1. They vacate at the end of the term. They don't have to give you any notice.

2. They are there the day after the end of the term, the tenancy is now periodic, and they have to give you 1 rental period notice if they want to leave. You have to give them 2 months notice, but that doesn't end the tenancy, instead means you can then take them to court if they don't leave.

You can't boot them out at the end of the term, as you would have had to serve 2 months notice, and it's too late for that now.

So forget the CCJ, you have tenants.

Guest101

hoyalove wrote: »

The contract clearly shows 1 month though. I understood if it is a periodic tenancy it is a month notice by law?

two months, you must give two months notice (by law)

Pixie5740

hoyalove wrote: »

The contract clearly shows 1 month though. I understood if it is a periodic tenancy it is a month notice by law?

You can put what you like in a contract (tenancy agreement) but that doesn't mean it overrules tenant's statutory rights. It would be useful if you could quote the exact wording in the tenancy agreement relating to notice and the frequency of rent payments.

See G_M's guide to Ending/renewing an AST as you seem to be a little unclear about what happens at the end of a fixed term and how/when a tenancy can be ended.

FBaby

Then we found out that tenants have around 1100 of unresolved CCJ from March this year and their incomes are not enough to pay the rent.

My biggest alarm bells would be the CCJ. Everyone can fall under hard time that leads to having to sell and rent, but assuming they used the process of the sale to provide the 12 months advance payment, and therefore that they had no rent to pay monthly, how could they get themselves in a situation to not pay £1,100 resulting in a CCJ. If they can't afford that, how will they afford rent in addition to their current bills?

sacha28

hoyalove wrote: »

Thanks for the comment. I hold 6 weeks of deposit. And the tenants said they would find a guarantor. If guarantor passes referencing it would be easier I guess.
The contract says: Should the contract have become a periodic, after the fixed term, one month's notice given... etc. So we do not need to make a new contract?

When you say YOU hold 6 weeks of deposit, I'm assuming (and hoping) you mean that you took reciept of the money then placed it into a deposit scheme?

Guest101

FBaby wrote: »

My biggest alarm bells would be the CCJ. Everyone can fall under hard time that leads to having to sell and rent, but assuming they used the process of the sale to provide the 12 months advance payment, and therefore that they had no rent to pay monthly, how could they get themselves in a situation to not pay £1,100 resulting in a CCJ. If they can't afford that, how will they afford rent in addition to their current bills?

its very possible the court papers went to their old address and this is the first they've heard of it

tom9980

sacha28 wrote: »

When you say YOU hold 6 weeks of deposit, I'm assuming (and hoping) you mean that you took reciept of the money then placed it into a deposit scheme?

The landlord can hold it when they use an insurance backed scheme so you are actually wrong when you make the assumption its not protected if the landlord holds the cash. It should obviously be protected.

sheff6107

"they were not aware of CCJ as their credit score shows 'FAIR' rating?"

They're either ignorant or know full well and don't care. You need to find out which because I would be on pins every month expecting no rent payment in either scenario. Otherwise, what was the point of the check?