Rent arrears due to hidden late charges

kelsall_13

Hi All

Posting on behalf of my girlfriend who has just had an eviction notice served on her, ending her tenancy in the middle of this April. This is ironically two months before we plan to move in together, which the letting agents knew as she only asked for a 6 month lease this year. They have never actually procured this 6 month lease and had her sign anything, since the last contract well over a year ago.

The situation is that she has been living in this property for three years now with the full rent paid, by the end of the month, in two payments of DSS from the Council. The first payment at the start of the month and the second at the end of the month. This has never been a problem until now suddenly.

We've just found out via the eviction notice that she is £1,860 in arrears, £550 of which we assume is this months rent, even though half has been paid by today. The left over amount is due to 13 months worth of 'Late Charges' on this previous contract. This is, as we found out on closer inspection, something which had been hidden in the contract last year stating payment should be made by the 10th, yet the contract was supposedly a roll over from the previous one.

It's worth noting that multiple conversations have happened with the tenancy agents within these 13 months yet not once has it been mentioned that she is falling into arrears due to their hidden payments.

She has spoken to the council about the payments and these dates are set and cannot be changed and they haven't changed once during the three year tenancy.

Surely it is the obligation of the agency to inform us of these extra charges and also that they've been charging this extra for so long. She has never received an invoice or receipt of any payments, they can however 100% be accounted for. Naturally due to how they're paid not a payment has been missed either in the long run.

Naturally she horrified that its suddenly been thrown up so close to moving in together as it will ravage the money I've saved to get her out of there. What would be the best course of action moving forward?

Thanks for all your help!
Daniel.

EDIT: It's also worth noting she is looking after a 3 year old in the property.

Pixie5740

kelsall_13 wrote: »

Hi All

Posting on behalf of my girlfriend who has just had an eviction notice served on her, ending her tenancy in the middle of this April. This is ironically two months before we plan to move in together, which the letting agents knew as she only asked for a 6 month lease this year. They have never actually procured this 6 month lease and had her sign anything, since the last contract well over a year ago.

The situation is that she has been living in this property for three years now with the full rent paid, by the end of the month, in two payments of DSS from the Council. The first payment at the start of the month and the second at the end of the month. This has never been a problem until now suddenly.

We've just found out via the eviction notice that she is £1,860 in arrears, £550 of which we assume is this months rent, even though half has been paid by today. The left over amount is due to 13 months worth of 'Late Charges' on this previous contract. This is, as we found out on closer inspection, something which had been hidden in the contract last year stating payment should be made by the 10th, yet the contract was supposedly a roll over from the previous one.

It's worth noting that multiple conversations have happened with the tenancy agents within these 13 months yet not once has it been mentioned that she is falling into arrears due to their hidden payments.

She has spoken to the council about the payments and these dates are set and cannot be changed and they haven't changed once during the three year tenancy.

Surely it is the obligation of the agency to inform us of these extra charges and also that they've been charging this extra for so long. She has never received an invoice or receipt of any payments, they can however 100% be accounted for. Naturally due to how they're paid not a payment has been missed either in the long run.

Naturally she horrified that its suddenly been thrown up so close to moving in together as it will ravage the money I've saved to get her out of there. What would be the best course of action moving forward?

Thanks for all your help!
Daniel.

EDIT: It's also worth noting she is looking after a 3 year old in the property.

Whatever notice your girlfriend has been served with, Section 21 or Section 8, it does not end the tenancy as it is just notice the landlord might go to court to get a possession order.

Rent is due on or before the date specified in the tenancy agreement. That is your girlfriend’s contractual obligation.

What does the tenancy agreement say about charges for late payment of rent?

Read G_M’s guide to Ending/Renewing an AST for further information.

Cakeguts

Are you sure that these late charges aren't actually the fact that the housing benefit doesn't cover the whole rent and she was supposed to make up the difference?

G_M

Not what you want to hear but...

kelsall_13 wrote: »

Hi All

..... eviction notice served on her, ending her tenancy in the middle of this April.
Was this a S21 Notice?
Or a S8 Notice (for rent arrears)?
Or a letter, or what?

What exact date was it served?
What exact date does it expire?

........two payments of DSS from the Council. The first payment at the start of the month and the second at the end of the month. This has never been a problem until now suddenly.
Do these two payments add up to the exact monthly rent?
What are thhe payments for?

We've just found out via the eviction notice that she is £1,860 in arrears, £550 of which we assume is this months rent, even though half has been paid by today. The left over amount is due to 13 months worth of 'Late Charges' on this previous contract.
OK - so you know what the arrears are for.

This is, as we found out on closer inspection, something which had been hidden in the contract last year stating payment should be made by the 10th, yet the contract was supposedly a roll over from the previous one.
Not clear. You say there was no new agreemant signed last year, so the tenanc became periodic. The terms, including date of rent payment, would be te same as before. Was that always the 10th?

Or, if you did sign a new agreement, did yyou not read it and see the payment date had changed?

It's worth noting that multiple conversations have happened with the tenancy agents within these 13 months yet not once has it been mentioned that she is falling into arrears due to their hidden payments. Irrelevant.

She has spoken to the council about the payments and these dates are set and cannot be changed and they haven't changed once during the three year tenancy.
Do you mean
* the date rent is due, or
* the date the two payments are received from the council?

I'm not clear if the council is your landlord (council tenant?) or what the 2 payments are for.

Surely it is the obligation of the agency to inform us of these extra charges
No - it is the obligation of the tenant to pay the rent on time.

If the late paymnent charges are written in the tenancy agreement, then the landlord did inform you.

If they are not in the tenancy agreement, they cannot be charged.

and also that they've been charging this extra for so long. She has never received an invoice or receipt of any payments, they can however 100% be accounted for.
In that case they must be paid.
Naturally due to how they're paid not a payment has been missed either in the long run.
My undrstanding is that the full rent has been paid each month, but half (or some) of it has been paid late every month, yes?
Naturally she horrified that its suddenly been thrown up so close to moving in together as it will ravage the money I've saved to get her out of there. What would be the best course of action moving forward?
Ask the landdord (the council?) if they will kindly waive the late paymnent charges. If they refuse, then pay.

EDIT: It's also worth noting she is looking after a 3 year old in the property.

I'm not clear how that is worth noting. It makes no difference.

kelsall_13

Thanks for the responses.

The notice is a section 21 and the notice is a 'Form 3 - Notice seeking possession of a property let on an assured tenancy or an assured agricultural occupancy''

The date it was served is 13/02/2018, Yesterday

The court proceedings will not happen until after 28/02/2018

Two separate housing benefit payments that add up to £450 and she makes up the other £100, always at the start of the month. £220 and £230 respectively.

She couldn't say with 100% what the arrears are; we have assumed a deduction of one months rent then £1,310 = 13 no. £100 charges with a £10 admin fee - I'm seeing her tomorrow. I'll check what the exact payments are on the contract, if they're stated at all.

The payment date has always been the 10th, there has never been a problem until yesterday. The clause was only written into the 'roll over' contract which was signed last year, only noticed after this sudden charge.

The dates the payments are set - the council has confirmed this in writing with the letting agents when it was all set up three years ago.

Another point she raised earlier following me posting this, the council had to block an unfair rise in the rent prior to the 'roll over' contract as they were trying to put the rent up. (probably why they wrote this in...)

The full rent has always been paid without a missed payment, they just suddenly dropped this on her as you can imagine.

G_M

kelsall_13 wrote: »

Thanks for the responses.

The notice is a section 21 and the notice is a 'Form 3 - Notice seeking possession of a property let on an assured tenancy or an assured agricultural occupancy''
That sounds like the correct form.

The date it was served is 13/02/2018, Yesterday

The court proceedings will not happen until after 28/02/2018
13/2/18 to 28/2/18 is not two calender months, so the notice is invalid.

Two separate housing benefit payments that add up to £450 and she makes up the other £100, always at the start of the month. £220 and £230 respectively.
So rent is £550 pm due on 10th?
Council pays £220 at start of month.
She pays £100 at start of month
Council pays £230 at end of month
Correct?

So each month £230 is paid late.

She couldn't say with 100% what the arrears are; we have assumed a deduction of one months rent then £1,310 = 13 no. £100 charges with a £10 admin fee - I'm seeing her tomorrow. I'll check what the exact payments are on the contract, if they're stated at all.
You need to et a clear statement of how the arrears are made up.

The payment date has always been the 10th, there has never been a problem until yesterday. The clause was only written into the 'roll over' contract which was signed last year, only noticed after this sudden charge.
So last year a new contract was signed (the term 'roll over' suggested to me that NO new contract was signed and the original contract continued ie rolled over).

Before the new contract last year, what date was rent due? You say "always been the 10th" bu then you imply this is a neew date "only writtten in... last year".

The dates the payments are set - the council has confirmed this in writing with the letting agents when it was all set up three years ago.
Irrelevant.
Rent is due on whatever date the contract specifies. The date Benefits are paid is irrelevant.

Another point she raised earlier following me posting this, the council had to block an unfair rise in the rent prior to the 'roll over' contract as they were trying to put the rent up. (probably why they wrote this in...)
You'll need to clarify this. What kind of tenancy is it?
The counccil has no power to 'block' a rent increase in a private AST tenancy. (though a Rent Assessment Committee may be able to under the Housing Act 1988 section 13)

The full rent has always been paid without a missed payment, they just suddenly dropped this on her as you can imagine.

Always paid, but always late.

Cakeguts

If you signed a contract to say that you would pay the rent on for example the 10th of the month then that is the day that you have to pay the rent. On that day you have to pay all the rent not bits or parts of it unless there is an agreement written into the tenancy agreement that you can pay it later. What she has been doing is paying some of the rent later than the day she signed to say she would pay it? When she gets the money is none of the landlord's business. Her personal circumstances are none of the landlord's business.

Imagine going to your local supermarket and telling them that you want to buy a loaf of bread but you can only pay for half of it that day and they will have to wait until the end of the month for you to pay the rest of the cost but in the meantime you are going to take it home and eat it.

When you rent a house you are buying space to live in. When you get paid or get benefits doesn't alter when you have said you will pay for the place to live in.

The rent has been paid late every month. If you want to avoid problems like this in the future make sure that the rent is paid on the day that it is due.

da_rule

Just a point of clarification, in the original post the Op said that the date mentioned in the notice was mid-April but in his response to G_M he has said that it is late Feb. Which is it?

Asl77c

I am just curious as to why this is talked about as being 'hidden' if it is in the contract she signed, its not exactly hidden. It is in black and white. If it isn't in the contract she signed surely it isn't enforceable and is not 'hidden' and is illegal.

Hippo

Charges weren't hidden, your GF merely didn't read the contract she signed.

A S21 is merely an invite to leave. Will take at least 4 months to get an eviction notice, so I would expect to be evicted late August onwards

franklee

The dates the payments are set - the council has confirmed this in writing with the letting agents when it was all set up three years ago.

This might be relevant depending on what was confirmed. Did the letting agent agree to the variation on the payment schedule and is there any written evidence of that? Otherwise what was it that made your girlfriend think it had been agreed not to pay all the rent by the 10th? Really anything important like this should be confirmed in writing.

It does seem odd the agent waited a year to raise the issue. I would expect them to raise late payments and charges as they happened. So I would be querying why they didn't raise it before. Agents are usually pretty hot at asking for money when they think it's due. It seems unfair to say nothing for 13 months and then charge 1,300 for the lot. That way a tenant under the mistaken belief a different payment schedule has been agreed can make good before running up a huge debt.

Also £100 a month sounds excessive. I would expect it to be a modest admin fee and then possibly interest. If it's a penalty it may not be enforceable.

This link is quite old so may not be up to date but you get the gist:

http://www.landlordlawblog.co.uk/2016/07/07/letting-agent-fees-illegal/

"4. Late payment letter fees

Here the law is quite clear. Agents (and landlords) will not be entitled to charge tenants for these unless they are authorised by the tenancy agreement.

If the fee is authorised by the tenancy agreement then the enforceability of the clause will depend on whether it is 'fair'; or not under the unfair contract terms regulations, which are now part of the Consumer Rights Act 2015.
Modest fees which represent the actual cost of writing the letter will normally be allowed. However, landlords and their agents are not entitled to make a profit out of their tenant's impecuniosity.".

Also see comment by dsns here:

https://www.propertytribes.com/how-to-deal-with-late-rent-payment-t-11761.html

"dsns 16 Jul 2014 at 16:21
Like Tessa I think you will find that the £50 late rent charge might be construed as a penalty and hence unenforceable. The interest charge is ok although 8% above base might be harder to sustain if base rates were to rise. The Court rate is fixed at 8%. There is nothing wrong with a charge for chaser letters as this represents an admin cost. The £50 though does not appear to be linked to an admin cost and so is more problematic.".