BTL Rent Arrears

BarleyGB

Looking for advice, one of my properties has slipped into arrears for last 3 months with payments being made a week or two late.

As a landlord its the first time experiencing this. Tenants (5 months into a 12 month let) have admitted temporary financial difficultly and intention to pay (plus costs arrising from late payments).

Asked me to bear with them, but also indicating that they'd understand if I look for alternative tenants.

Thyere currently 9 days late with latest payment, would you give them time or look to remarket immediately?

Im reasonably comfortable I could re-let within a month.

silvercar

You can't relet unless the current tenants give notice and physically leave.

Their understanding doesn't really help if they don't actually go!

theartfullodger

Issue s8 g10 & 11 TODAY. Simple tactic, cost of a stamp, A4 sheet & envelope. They might take the hint.

S8g10 may be validly issued if only 1p is underpaid only 1 day. Explain, if asked, verbally only, that you might need to inform council of arrears but if they never happen again might not.

By now you could have had 3 s8s validly served.

As a landlord I expect to have to comply with all my requirements under tenancy contract: Can't see why other people shouldn't either.

Others may hold alternative views...

anselld

BarleyGB wrote: »

Tenants (5 months into a 12 month let) have admitted temporary financial difficultly and intention to pay (plus costs arrising from late payments).

What costs arising? Late payment by T is unacceptable but L inventing further "costs" is not going to help the situation.

[Deleted User]

I wonder if the OP means the tenant's DD failed and costs incurred as a result of that. I hope the LL isn't adding to the situation by making large charges because of late rent payments. That won't really help, practically, even if written into the TA.

Are the tenants in long term arrears or eventually pay but late i.e. they are a month, two months behind in the rent, not reducing this. Or the rent is paid eventually each month?

But I think you need to be reassured the tenants will be able to catch up on themselves. Sounds like they need debt advice like Stepchange or to go to the CAB? Problem is, once you start getting into arrears and/or don't have the money in your account to pay direct debits, it becomes a bit of an escalating situation. Unless the tenants are able to get hold of more money (more work, cut down on spending) it will get worse.

If they are saying they understand if you don't want them to be your tenant anymore, it sounds like they feel they can't solve the situation. Where will they go on to? As has been pointed out, if in arrears and applying for social housing, unless the council agrees they are doing everything they can to keep rent paid (putting rent before everything else) the council won't help them.

But you don't want the situation getting worse, obviously.

mchale

Be a good human being, give them a bit more time 9 days late isn't the end of the world.

Crashy_Time

BarleyGB wrote: »

Looking for advice, one of my properties has slipped into arrears for last 3 months with payments being made a week or two late.

As a landlord its the first time experiencing this. Tenants (5 months into a 12 month let) have admitted temporary financial difficultly and intention to pay (plus costs arrising from late payments).

Asked me to bear with them, but also indicating that they'd understand if I look for alternative tenants.

Thyere currently 9 days late with latest payment, would you give them time or look to remarket immediately?

Im reasonably comfortable I could re-let within a month.

If only it was so simple.....:)

G_M

So 3 payments have been a week or so late. But always paid (so far).

Tenants ... have admitted temporary financial difficultly and intention to pay

Have they explained further thn this? Lost a job? Waiting for new job to start? Salary payment date has changed so that rent can be paid a week late when salary arrives?

The answer to these (and similar) Qs might suggest what action is appropriate.

But to me it does not sound too bad. They are paying each month, albeit late. And they are talking to you about it, not blanking you or burying their heads in the sand.

On option is to follow artful's advice and serve a S8 ground 10. It's unlikely to succeed in court (if indeed eviction is your preferred option) but may have a psychological efffect on them. Though if they ain't got the money till the next week, then they ain't got it!

Of course, if the arrears build up, and reach 2 completely missed payments, that's a different ball-game: S8 ground 8 straight away.

buggy_boy

Crashy_Time wrote: »

If only it was so simple.....:)

Thanks for that oh so very useful post....

To elaborate, as they have a 12 month tenancy you cannot evict them for not paying rent until they are 2 months in arrears, if at any point they reduce that to under 2 months the eviction fails.

When the 12 months is up then you can use section 21 no fault eviction to guarantee eviction.. My suggestion would be keep on top of it, try to be friendly as ultimately there is not much you can do at the moment, keep the lines of communication open.

I would say im happy to help however I can but we need to make sure the arrears do not build up (Ultimately nothing much you can do at this point), turn their I understand if you want to get another tenant to look if you are struggling and cannot afford the rent im happy for you to surrender the tenancy early with the rent pro-rata'd but no other fees (Cut your loses)

JennyP

Why not cut them a little slack if you can afford to?

A few years ago, one of my tenants lost her job and said she was waiting on benefits to kick in.I explained I was reliant on the rent to pay mortgage so would have difficulty if arrears built up but could wait a month.

She got her benefits then later started a business. She paid me all she owed. When she decided to leave of her own accord later, we parted amicably. Two years later she phoned to say if the house is ever vacant agai, she would take it. I saw on facebook recently that her business is now well established. I would take her back like a shot as she looked after the place. Ultimately I think good relations with tenants are worth more. If you explain your position, say you can't afford to let arrears build up but can bear with them for a month or so, you could avoid a whole lot of hassle.

Crashy_Time

buggy_boy wrote: »

Thanks for that oh so very useful post....

To elaborate, as they have a 12 month tenancy you cannot evict them for not paying rent until they are 2 months in arrears, if at any point they reduce that to under 2 months the eviction fails.

When the 12 months is up then you can use section 21 no fault eviction to guarantee eviction.. My suggestion would be keep on top of it, try to be friendly as ultimately there is not much you can do at the moment, keep the lines of communication open.

I would say im happy to help however I can but we need to make sure the arrears do not build up (Ultimately nothing much you can do at this point), turn their I understand if you want to get another tenant to look if you are struggling and cannot afford the rent im happy for you to surrender the tenancy early with the rent pro-rata'd but no other fees (Cut your loses)

Your welcome. It`s just that too many people thought BTL was some magic money machine that could never go wrong