Arrears In Rent

deepam

Hi,

My tenant pays the whole year's rent in advance. It has been like this since last 4 years. This year he signed the year's agreement and then told my estate agent that he can't pay rent anymore and is going on benefits. My agent tells me that there is no option for me but to go to court to get my flat vacated since he has signed the contract.

I want to know what are my rights and options? Please help

boo_star

deepam wrote: »

Hi,

My tenant pays the whole year's rent in advance. It has been like this since last 4 years. This year he signed the year's agreement and then told my estate agent that he can't pay rent anymore and is going on benefits. My agent tells me that there is no option for me but to go to court to get my flat vacated since he has signed the contract.

I want to know what are my rights and options? Please help

Section 21 notice?

But does the agent mean he can't pay the rent in advance or can't pay at all?

He can presumably claim Housing Benefit too (or the equivalent under Universal Credits?)

tacpot12

I'm inclined to think that the tenant may be guilty of signing the Tenancy Agreement in bad faith. He will not have done so if he had no other choice because he lost his income so close to the new agreement needing to be signed. You need legal advice from a solicitor if you want to argue that he has no tenancy agreement because the one he signed was signed in bad faith.

What was supposed to happen at the end of the 12 months? Was the tenant supposed to move out?

The situation would have been cleared if you were using an Assured Shorthold Tenancy Agreement for the property. Why were you not doing so?

GDB2222

The new agreement is largely a red herring, as the tenant could just have held over on the old agreement.

You can't serve a s21 in the fixed term, so it makes that difference.

Wait until there are two months rent arrears, then issue a s8 notice. Then issue court proceedings and do an eviction. This will take 6-8 months and cost you plenty. There's no incentive for the tenant to pay rent during that time.

Frankly, you're panicking. The tenant has been a good and responsible person for 4 years. Give him a chance to sort out his financial situation and see how it pans out. Even if there's a shortfall in the rent, it's probably cheaper than trying to evict him.

deepam

To answer all questions

He says he can't pay at all and I feel he won't be able to pay the rent after going on benefits (He has an appointment with the council regarding this). My rent is £900/month.
The reason he always paid in advance was because initially he was ill and dint have a job. He was not getting a rental anywhere because of this and I decided to help - and he did pay for 4 years. I was very upset this year when he signed the contract knowing very well that he can't pay. So he was not suppose to move out after 12 months as long as he paid and wanted to stay.

I am happy to give him two months but what if he does not move out after that?

Could someone please explain s21 and s8?

Dorian1958

If you read GM's sticky at the top of this board it will tell you everything you need to know about your responsibilities in running a rental business, including the issuing of notices. You may want to reflect on whether or not this is the right business for you to be in.

tom9980

Yet another landlord who has been letting for years who seemingly has no idea about basic fundamental rules and regulations. It's ok to not know the finer details but to have no knowledge of s8 or s21 is mind blowing to me it makes me wonder what else you have failed to do.

It is time you take your business seriously and stop letting your fellow landlords down as well as your poor tenants should they become a victim to your poor practice.

silvercar

Look up online what the LHA for your area is (it varies by area and number of bedrooms tenant is entitled to). See how his compares to the rent you charge. Then have a conversation with the tenant. If they can claim the housing element of universal credit, then they can continue to afford the rent.
You will have to accept rent being paid when due, possibly in arrears; but that should be manageable.
Seems harsh to evict a tenant who has fallen on hard times but has been reliable until now.

GDB2222

deepam wrote: »

To answer all questions

He says he can't pay at all and I feel he won't be able to pay the rent after going on benefits (He has an appointment with the council regarding this). My rent is £900/month.
The reason he always paid in advance was because initially he was ill and dint have a job. He was not getting a rental anywhere because of this and I decided to help - and he did pay for 4 years. I was very upset this year when he signed the contract knowing very well that he can't pay. So he was not suppose to move out after 12 months as long as he paid and wanted to stay.

I am happy to give him two months but what if he does not move out after that?

Could someone please explain s21 and s8?

You have no choice but to give him two months! If he has paid nothing during that time you can start the VERY EXPENSIVE eviction process. If he pays part of the rent, you'll have to wait until two months arrears have built up.

"I decided to help" Getting someone to pay annually in advance is not really pushing the boat out charity-wise.

It's part of being a landlord that not all tenants can pay in full and on time. Eventually you can winkle the worst ones out. The good tenants and the half decent ones you aim to keep as long as possible.

grumiofoundation

deepam wrote: »

To answer all questions

He says he can't pay at all and I feel he won't be able to pay the rent after going on benefits (He has an appointment with the council regarding this). My rent is £900/month.
The reason he always paid in advance was because initially he was ill and dint have a job. He was not getting a rental anywhere because of this and I decided to help - and he did pay for 4 years. I was very upset this year when he signed the contract knowing very well that he can't pay. So he was not suppose to move out after 12 months as long as he paid and wanted to stay.

I am happy to give him two months but what if he does not move out after that?

Could someone please explain s21 and s8?

The fact he signed a new contract means you can only evict using S8 not section 21 (although probably a good chance section 21 would have been invalid anyway).

You had zero right to expect him to move out after 12 months.

To echo previous posters - read up on your rights and responsibilities
https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

grumiofoundation

tacpot12 wrote: »

I'm inclined to think that the tenant may be guilty of signing the Tenancy Agreement in bad faith. He will not have done so if he had no other choice because he lost his income so close to the new agreement needing to be signed. You need legal advice from a solicitor if you want to argue that he has no tenancy agreement because the one he signed was signed in bad faith.

What was supposed to happen at the end of the 12 months? Was the tenant supposed to move out?

The situation would have been cleared if you were using an Assured Shorthold Tenancy Agreement for the property. Why were you not doing so?

Presuming was an AST.
Even if the tenancy agreement was signed in “bad faith” (I’m sure someone far more knowledgable than me knows if this is relevant or not) the tenant moves onto a periodic tenancy by law. So either way landlord has to go to court to evict the tenant.

A landlord has no legal right to expect a tenant to move out after the fixed term.