Lodgers not paying

Yaroslava

Hello. I'm in a rather difficult situation and hoping for some advice. I realise that some of the issue is my own fault as I should have done things differently, but hindsight is 20:20, and unfortunately I have to deal with things as they stand.

tl;dr - my lodgers aren't paying, despite a reminder and a formal request. I can't visit the house and I don't know what to do next. Help!

I bought a property a few years ago, initially I rented one room out to a friend who needed a place at short notice and then later rented a second bedroom as I needed the additional income after splitting from my partner. For the first couple of years it was always to friends/friends of friends, but more recently had to find people I didn’t know. I’ve always been as careful as possible in who I pick, to get people who are nice and have never had any problems. Because of this, I’ve never had contracts (it would have been weird with friends, and with strangers I figured it meant that if there was a problem it would mean it was easier to ask them to leave if they were not tied in to anything). I’ve never done it to make money, it’s just been a enough to cover the bills and mortgage, and I’ve constantly been putting money in to the house to renovate it from the very dated state it was in, so there hasn't been a profit. Because it has always been casual arrangements, whilst I was living there, and no profit involved, I have never registered myself with the local authority as a landlord or the house as having multiple occupants.

A few months ago, I had the opportunity to take time off to travel, so decided to rent my own room out as well (again, not for profit, just covering costs). One of my lodgers decided he would move out as I was going, but the other, who had been there since early 2019 and I had a good relationship with, was staying. We found two people who both seemed nice and had good references to move in, they paid deposits, and I left the country. Since then, one has been fine, but the other has not paid any rent (she says she has but I know she has the correct details as the deposit arrived and there has been nothing since then), and she has not replied to most of my emails querying this (but has replied to ones on other matters so I know the address is correct).

Due to the pandemic, I have had to return to the UK, but have been staying with friends in another part of the country as I had told the person who took my room (who has been paying rent) that it would be available until the end of June, and didn’t want to make her have to find alternative accommodation at such a difficult time. However, since returning none of them have paid their rent. I initially sent a polite query to one (who had emailed about something else), as I know it’s easy to loose track of days at the moment. I got no response to this, so a week later sent a formal request to each of them (I found a template on Which?) detailing the amount owed and asking for immediate payment or for them to contact me to discuss, but nearly two weeks on have still had no contact. I realise their financial situations might have changed due to the pandemic (although one was on JSA already, so their position is no different), but they should have explained this to me if that was the case.

I’m now wondering what my next step should be. I’m unable to visit the house in person, as I’m hundreds of miles away and have no private transport, although if necessary I do have someone who could go on my behalf. If they are paying, I am happy for them to remain there for now, so don’t want to go down the eviction route unless absolutely necessary, but really need the rental income to cover the mortgage (I am working, but on a very low wage as a key worker, no where near enough to manage the house expenses). Am I able to threaten legal action/get debt collectors in, without putting myself at risk, and with no contracts? And is that even an option at the moment? For two of them, I do have records of previous payments, and for all there are email/text conversations showing an agreement of the rental amount, moving dates, a bank transfer labelled 'deposit', etc., so there is written proof of an arrangement, even though there is no formal contract.

Any advice or guidance would be much appreciated as I’m feeling quite stuck and vulnerable at the moment. Thanks!

[Deleted User]

Yaroslava said:

Hello. I'm in a rather difficult situation and hoping for some advice. I realise that some of the issue is my own fault as I should have done things differently, but hindsight is 20:20, and unfortunately I have to deal with things as they stand.

tl;dr - my lodgers aren't paying, despite a reminder and a formal request. I can't visit the house and I don't know what to do next. Help!

I bought a property a few years ago, initially I rented one room out to a friend who needed a place at short notice and then later rented a second bedroom as I needed the additional income after splitting from my partner. For the first couple of years it was always to friends/friends of friends, but more recently had to find people I didn’t know. I’ve always been as careful as possible in who I pick, to get people who are nice and have never had any problems. Because of this, I’ve never had contracts (it would have been weird with friends, and with strangers I figured it meant that if there was a problem it would mean it was easier to ask them to leave if they were not tied in to anything). I’ve never done it to make money, it’s just been a enough to cover the bills and mortgage, and I’ve constantly been putting money in to the house to renovate it from the very dated state it was in, so there hasn't been a profit. Because it has always been casual arrangements, whilst I was living there, and no profit involved, I have never registered myself with the local authority as a landlord or the house as having multiple occupants.

A few months ago, I had the opportunity to take time off to travel, so decided to rent my own room out as well (again, not for profit, just covering costs). One of my lodgers decided he would move out as I was going, but the other, who had been there since early 2019 and I had a good relationship with, was staying. We found two people who both seemed nice and had good references to move in, they paid deposits, and I left the country. Since then, one has been fine, but the other has not paid any rent (she says she has but I know she has the correct details as the deposit arrived and there has been nothing since then), and she has not replied to most of my emails querying this (but has replied to ones on other matters so I know the address is correct).

Due to the pandemic, I have had to return to the UK, but have been staying with friends in another part of the country as I had told the person who took my room (who has been paying rent) that it would be available until the end of June, and didn’t want to make her have to find alternative accommodation at such a difficult time. However, since returning none of them have paid their rent. I initially sent a polite query to one (who had emailed about something else), as I know it’s easy to loose track of days at the moment. I got no response to this, so a week later sent a formal request to each of them (I found a template on Which?) detailing the amount owed and asking for immediate payment or for them to contact me to discuss, but nearly two weeks on have still had no contact. I realise their financial situations might have changed due to the pandemic (although one was on JSA already, so their position is no different), but they should have explained this to me if that was the case.

I’m now wondering what my next step should be. I’m unable to visit the house in person, as I’m hundreds of miles away and have no private transport, although if necessary I do have someone who could go on my behalf. If they are paying, I am happy for them to remain there for now, so don’t want to go down the eviction route unless absolutely necessary, but really need the rental income to cover the mortgage (I am working, but on a very low wage as a key worker, no where near enough to manage the house expenses). Am I able to threaten legal action/get debt collectors in, without putting myself at risk, and with no contracts? And is that even an option at the moment? For two of them, I do have records of previous payments, and for all there are email/text conversations showing an agreement of the rental amount, moving dates, a bank transfer labelled 'deposit', etc., so there is written proof of an arrangement, even though there is no formal contract.

Any advice or guidance would be much appreciated as I’m feeling quite stuck and vulnerable at the moment. Thanks!

I would say that these aren’t lodgers but tenants. You mention registering with the local authority as a landlord, is this property in Scotland? 

brett19852010

You will get a lot of comments and no doubt reasonable information but I suggest you register and take free advice from a well know landlord association and following this engage a modestly priced solicitor. Arguably they are tenants, not lodgers and this makes a big difference.

Thrugelmir

Sounds as if your "lodgers" know the law better than you do. That's the inherent danger when taking short cuts. Gets messy and expensive when matters go wrong. 

Comms69

Yaroslava said:

Hello. I'm in a rather difficult situation and hoping for some advice. I realise that some of the issue is my own fault as I should have done things differently, but hindsight is 20:20, and unfortunately I have to deal with things as they stand.

tl;dr - my lodgers aren't paying, despite a reminder and a formal request. I can't visit the house and I don't know what to do next. Help! - If you dont live there, they're tenants not lodgers!

I bought a property a few years ago, initially I rented one room out to a friend who needed a place at short notice and then later rented a second bedroom as I needed the additional income after splitting from my partner. For the first couple of years it was always to friends/friends of friends, but more recently had to find people I didn’t know. I’ve always been as careful as possible in who I pick, to get people who are nice and have never had any problems. Because of this, I’ve never had contracts (it would have been weird with friends, and with strangers I figured it meant that if there was a problem it would mean it was easier to ask them to leave if they were not tied in to anything). - so you've got tenants and you've not done any of the official requirements? I’ve never done it to make money, it’s just been a enough to cover the bills and mortgage - that's making money! , and I’ve constantly been putting money in to the house to renovate it from the very dated state it was in, so there hasn't been a profit. - so not paying any tax... Because it has always been casual arrangements, whilst I was living there, and no profit involved, I have never registered myself with the local authority as a landlord or the house as having multiple occupants. - uh oh...

A few months ago, I had the opportunity to take time off to travel, so decided to rent my own room out as well (again, not for profit, just covering costs). One of my lodgers decided he would move out as I was going, but the other, who had been there since early 2019 and I had a good relationship with, was staying. We found two people who both seemed nice and had good references to move in, they paid deposits, and I left the country. - you have tenants. You are literally screwed  Since then, one has been fine, but the other has not paid any rent (she says she has but I know she has the correct details as the deposit arrived and there has been nothing since then), and she has not replied to most of my emails querying this (but has replied to ones on other matters so I know the address is correct). - irrelevant 

Due to the pandemic, I have had to return to the UK, but have been staying with friends in another part of the country as I had told the person who took my room (who has been paying rent) that it would be available until the end of June, and didn’t want to make her have to find alternative accommodation at such a difficult time. - you cannot make her leave. Not for atleast 12 months, maybe ever.  However, since returning none of them have paid their rent. I initially sent a polite query to one (who had emailed about something else), as I know it’s easy to loose track of days at the moment. I got no response to this, so a week later sent a formal request to each of them (I found a template on Which?) detailing the amount owed and asking for immediate payment or for them to contact me to discuss, but nearly two weeks on have still had no contact. I realise their financial situations might have changed due to the pandemic (although one was on JSA already, so their position is no different), but they should have explained this to me if that was the case. - yes lots of people 'should've' done lots of things

I’m now wondering what my next step should be. - nothing. you have no next step. This is where it all catches up with you I’m unable to visit the house in person, as I’m hundreds of miles away and have no private transport, although if necessary I do have someone who could go on my behalf. - dont. you risk being arrested  If they are paying, I am happy for them to remain there for now - you have no choice , so don’t want to go down the eviction route unless absolutely necessary, but really need the rental income to cover the mortgage (I am working, but on a very low wage as a key worker, no where near enough to manage the house expenses). Am I able to threaten legal action/get debt collectors in, without putting myself at risk, and with no contracts? - You can, but it's not going to achieve anything, once they realise they have all the power, you'll be paying them to leave. And is that even an option at the moment? For two of them, I do have records of previous payments, and for all there are email/text conversations showing an agreement of the rental amount, moving dates, a bank transfer labelled 'deposit', etc., so there is written proof of an arrangement, even though there is no formal contract.

Any advice or guidance would be much appreciated as I’m feeling quite stuck and vulnerable at the moment. Thanks!

Prepare to sell your house, because you will owe a lot of money after this. 

greatcrested

You are not a resident landlord.

They are not lodgers.

They are tenants.

What rights you and they have depends what country this is, so it is pointless commenting further till you clarify that.

FreeBear

If the LL was in residence when the lodgers moved in, and intended to return within six months, there is a good chance they would still be deemed lodgers. Unfortunately, a bit of a grey area that is subject to different interpretations & opinions. The OP needs qualified legal council before evicting any of them.

jonnygee2

tl;dr - my lodgers aren't paying, despite a reminder and a formal request. I can't visit the house and I don't know what to do next. Help!

As above, these really aren't lodgers. You've rented your own bedroom out and moved out, they now have exclusive occupancy, and are therefore tenants. 

I’m unable to visit the house in person, as I’m hundreds of miles away and have no private transport, although if necessary I do have someone who could go on my behalf. 

You need to be careful - you don't have an automatic right of entry to the house, which will now be seen legally as their home, not yours. You need to make sure you get their permission to enter. There are some exceptions but until you are familiar with what they are, if you aren't careful it could start to look like harassment. 

That said, you may want the neighbour to go and check if they are actually there, in case they've just all trashed the place and left. A knock on the door would suffice. 

I think at this point you should consider the advice of a solicitor to help you start digging your way out of this. It could be a long and expensive journey, depending on where these tenants are and what they decide to do.

Stubod

I think you're screwed....your tenants / lodgers seem to hold all the cards, (and probably know it). I wish you luck, but you can only hope they are "reasonable" to any requests you make, but if not I think you are in for a long and costly journey made even more difficult given the current Covid situation.

Comms69

FreeBear said:

If the LL was in residence when the lodgers moved in, and intended to return within six months, there is a good chance they would still be deemed lodgers. Unfortunately, a bit of a grey area that is subject to different interpretations & opinions. The OP needs qualified legal council before evicting any of them.

The landlord could not have been in residence (no idea where that 6 months thing is from anyway?) as he let out his room. 

Also Counsel*

Also no eviction at the minute anyway*

macman

So these are not lodgers but tenants, and it's a an HMO? Unregistered as such, and no doubt you've not protected the deposit, provided the Prescribed Information, supplied a valid Gas Safety Certificate, EPC...need I go on?
All you can do is regularise the tenancy by correcting all of the above, plus the ones I haven't listed, and then you can serve an S8 once the tenant is in a minimum of 2 months arrears. At present, you need to give 3 months notice under the Coronavirus Act 2020, but don't expect them to be out within that timeframe, as all eviction processes are currently stayed by the courts. 
Realistically, if the courts start to move actions through again in the Autumn, you might be able to evict them by Christmas, but I wouldn't count on it.
In the meantime, they of course may decide to dob you in, or threaten to do so for failing to register the property as an HMO, breaching fire and gas safety regs, and sue you for non-protection of the deposit (which they will win, and means you paying them 3 times the deposit). Oh, and report you to HMRC for failing to declare the rental income.
Alternatively, you can buy them out of the tenancy, which could cost anything between a grand and ten times that. It all depends how clued up they are as to the multiple regulatory and criminal breaches you appear to have committed. Compared to you, they must be legal experts...