Unpaid rent & tenant request for Section 21 notice

marcofoo

Hoping for some help with a problem tenant including advice as to whether section 21 is the right way to go.

Noting the comments on 2nd July, I believe written notice has been received and that his last day is confirmed to be 1st July.

Apologies for the word dump.

-

On 26th June he claimed he paid the rent and PoP was to be provided the following day.

-

28th June: "I'm chasing my bank , they've done the same as they did last month and locked me out of online again, its lucky you spotted and told me because they've also not paid all my other bills due around the same dates,  they seem to do it when I add new payees.  

I have to go into branch today with identification again."

-

2nd July: "I've been waiting to hear back from the bank after visiting the branch 2 days in a row. 

I'd appreciate it if you could keep the following information confidential. 

I'm in a bit of a situation, the Bank have put my Business and Current accounts under review for 20 days due to a dispute over some funds I received from a client. 

This means I do not have access at all to any of my company funds or personal funds held with that Bank, as you can imagine the knock on affect of this is catastrophic and I'd be amazed if this practice is actually legal, I'm currently checking into this today. 

In regards to the outstanding rent, I'm going to ask a friend to pay the balance to you by Monday (or sooner if possible). 

As for the coming months I'm going to have to reluctantly proceed with giving notice as I can't guarantee the Banking review will be completed in time for next month's payment and don't wish to put you you in any difficulty.

Please be assured the flat is in perfect condition and will be left in such. I am very reluctantly giving notice and if this situation hadn't arose I would indeed have been happy to stay until the property sold or indeed I have considered putting an offer in myself."

-

8th July: "I have been unwell due to the stress of the situation which is the reason I haven't checked my emails.

Unfortunately I can not get anyone to make the payment for me yet, I'm trying to get this done. 

I have received an Email from Churchfield, asking my intentions etc I will inform them of the situation.  

The worst case scenario, is that I'm unable to make the payment at all and I have to sign my deposit over too you, I do believe I paid 6 weeks deposit (I'd have to check)."

-

17th July: "Sorry for the late reply , 

I've been attempting to put my affairs in order . 

Is it possible to issue me with a formal demand for the current outstanding balance and formal letter containing a section 21 notice of eviction on the grounds that my rent is more than 14 days late which would breach our contract. 

I will be able to force my bank into paying the balance even though my accounts are under review and I don't have access, 

 they cannot withhold rent, mortgage or certain other payments if I have an invoice or a formal demand."

Grumpy_chap

Looks like the tenant has got themselves into a pickle and, for whatever reason, is unable or unwilling to pay the rent.
If they give you notice, then they are voluntarily homeless.
If you serve S21, then when that process concludes the tenant can go to the Council for emergency accommodation - that will be many months from now.  Two benefits there for the tenant.

You probably need to serve S21 and then try to work with the tenant in the mean-time for them to pay rent that is accruing.

How long has the tenant been at the property?  Has the tenant paid correctly and on time up until now?
It is possible that the bank accounts were frozen, in which case this may all be genuine.
It is possible the stuff about frozen accounts is a tale and the tenant has used before and works the system knowing that eviction takes much longer than the value of 6 week's deposit.  In any event, the intent of the deposit is not to off-set rent.

GDB2222

What outcome do you want, and have you yet received the rent due in June?

S21 has nothing to do with outstanding rent. Just write a letter stating what the arrears are and asking for immediate payment.

Even if he gave notice on 2 July, that doesn't mean he has to leave, although he might be due to pay double rent.

However, he wrote "I'm going to have to reluctantly proceed with giving notice". It's not clear whether that was actually giving notice, or a statement of a future intention to do so. It certainly doesn't mention how long the notice is that he's giving. In any case, you haven't said what's in the tenancy agreement, or whether he's still in the fixed term.

[Deleted User]

marcofoo said:

Hoping for some help with a problem tenant including advice as to whether section 21 is the right way to go.

Noting the comments on 2nd July, I believe written notice has been received and that his last day is confirmed to be 1st July.

Apologies for the word dump.

-

On 26th June he claimed he paid the rent and PoP was to be provided the following day.

-

28th June: "I'm chasing my bank , they've done the same as they did last month and locked me out of online again, its lucky you spotted and told me because they've also not paid all my other bills due around the same dates,  they seem to do it when I add new payees.  

I have to go into branch today with identification again."

-

2nd July: "I've been waiting to hear back from the bank after visiting the branch 2 days in a row. 

I'd appreciate it if you could keep the following information confidential. 

I'm in a bit of a situation, the Bank have put my Business and Current accounts under review for 20 days due to a dispute over some funds I received from a client. 

This means I do not have access at all to any of my company funds or personal funds held with that Bank, as you can imagine the knock on affect of this is catastrophic and I'd be amazed if this practice is actually legal, I'm currently checking into this today. 

In regards to the outstanding rent, I'm going to ask a friend to pay the balance to you by Monday (or sooner if possible). 

As for the coming months I'm going to have to reluctantly proceed with giving notice as I can't guarantee the Banking review will be completed in time for next month's payment and don't wish to put you you in any difficulty.

Please be assured the flat is in perfect condition and will be left in such. I am very reluctantly giving notice and if this situation hadn't arose I would indeed have been happy to stay until the property sold or indeed I have considered putting an offer in myself."

-

8th July: "I have been unwell due to the stress of the situation which is the reason I haven't checked my emails.

Unfortunately I can not get anyone to make the payment for me yet, I'm trying to get this done. 

I have received an Email from Churchfield, asking my intentions etc I will inform them of the situation.  

The worst case scenario, is that I'm unable to make the payment at all and I have to sign my deposit over too you, I do believe I paid 6 weeks deposit (I'd have to check)."

-

17th July: "Sorry for the late reply , 

I've been attempting to put my affairs in order . 

Is it possible to issue me with a formal demand for the current outstanding balance and formal letter containing a section 21 notice of eviction on the grounds that my rent is more than 14 days late which would breach our contract. 

I will be able to force my bank into paying the balance even though my accounts are under review and I don't have access, 

 they cannot withhold rent, mortgage or certain other payments if I have an invoice or a formal demand."

A Section 21 does not require a ground for eviction which is why it’s often referred to as a no-fault notice so I don’t see how that would help the tenant with the bank. From what the tenant is telling you it sounds like the bank suspects fraudulent activity (this does not mean the tenant is guilty of fraud as banks can freeze and close accounts without hard evidence) and I don’t think a letter from you is going to make the bank release funds from a frozen account. You could try sign posting him to Resolved to start a complaint against the bank. 

https://www.resolver.co.uk/

https://www.ft.com/content/8fba7cac-83b3-4df3-a1a7-5b6869516085

Notice for rent arrears would be a Section 8 using ground 8 or 10. Ground 8 is mandatory ground for eviction and requires that the tenant owes at least 2 months rent. Where there are less than 4 months' rent (but at least 2 months) unpaid rent the notice period will be 4 months' notice; unless it is served after 1 August 2021, in which case it will be 2 months' notice. Where the tenant owes more than 4 months rent the notice period is just 4 weeks.  Ground 10 is discretionary and can be for any amount of arrears even just 1p. As it is discretionary I would avoid using it. 

Are you even able to serve a valid Section 21 notice at the moment? Is the tenancy periodic or near the end of a fixed term? 

If you can serve a valid Section 21 and the tenant owes more than 2 months rent I would take the belt and braces approach and issue both a Section 21 and a Section 8 using ground 8. First though I might even wait a couple of weeks and do that on 1st August to reduce the Section 8 notice period. 

Hopefully the tenant will get the issue resolved with his bank. 

theartfullodger

Serve s8 for arrears today.  When it get's to g8 serve s8 g8,10&11.  Copy to council to ensure minimal help and resource wasted on this cheat.

No reference or only a full, honest one.  No s21

Evict through court.

marcofoo

Tenancy commenced 18th Feb 2021 and expired 17th May 2021, thereafter rolling month-to-month. This was the arrangement as I had a buyer lined up, who ended up pulling out of the deal.

 The tenant paid the first 3 months up-front, and then there were some similar banking issues for month 4 but he did pay, albeit late.

 Ideal outcome is the tenant leaves immediately, or as soon as possible.

[Deleted User]

marcofoo said:

Tenancy commenced 18th Feb 2021 and expired 17th May 2021, thereafter rolling month-to-month. This was the arrangement as I had a buyer lined up, who ended up pulling out of the deal.

 The tenant paid the first 3 months up-front, and then there were some similar banking issues for month 4 but he did pay, albeit late.

 Ideal outcome is the tenant leaves immediately, or as soon as possible.

That ain't going to be happening unless the tenant agrees to an early surrender of the tenancy or serves his own notice.  If you need to issue notice then I think you'll be looking at 12 months easy.

marcofoo

Lover_of_Lycra said:

marcofoo said:

Tenancy commenced 18th Feb 2021 and expired 17th May 2021, thereafter rolling month-to-month. This was the arrangement as I had a buyer lined up, who ended up pulling out of the deal.

 The tenant paid the first 3 months up-front, and then there were some similar banking issues for month 4 but he did pay, albeit late.

 Ideal outcome is the tenant leaves immediately, or as soon as possible.

That ain't going to be happening unless the tenant agrees to an early surrender of the tenancy or serves his own notice.  If you need to issue notice then I think you'll be looking at 12 months easy.

Please elaborate on the 12 months?

anselld

marcofoo said:

Tenancy commenced 18th Feb 2021 and expired 17th May 2021, thereafter rolling month-to-month. This was the arrangement as I had a buyer lined up, who ended up pulling out of the deal.

 The tenant paid the first 3 months up-front, and then there were some similar banking issues for month 4 but he did pay, albeit late.

 Ideal outcome is the tenant leaves immediately, or as soon as possible.

So, once late and now three weeks in arears.  Seems a pit premature to write him off completely.  It is feasible the bank issues are true and he might catch up when resolved.  Only time will tell.

When you issued a tenancy in Feb there was a minimum of six months notice which could not be served until after 4 months so it was risky to try to have your cake and eat it despite the three months fixed term.

[Deleted User]

marcofoo said:

Lover_of_Lycra said:

marcofoo said:

Tenancy commenced 18th Feb 2021 and expired 17th May 2021, thereafter rolling month-to-month. This was the arrangement as I had a buyer lined up, who ended up pulling out of the deal.

 The tenant paid the first 3 months up-front, and then there were some similar banking issues for month 4 but he did pay, albeit late.

 Ideal outcome is the tenant leaves immediately, or as soon as possible.

That ain't going to be happening unless the tenant agrees to an early surrender of the tenancy or serves his own notice.  If you need to issue notice then I think you'll be looking at 12 months easy.

Please elaborate on the 12 months?

You’ll need to give the tenant at least 4 months notice with a Section 21, he’s not in enough arrears for a Section 8 ground 8, and notice is just notice that you might go to court to get a possession order the notice itself doesn’t end a tenancy. 

The courts are jammed up for the past 12+ months with due to the Covid Act 2020 so you’ll need to join the queue. 

letsbetfair

It's plausible that a bank could have frozen the tenant's funds for some while (some of the 'new' banks/card companies have become known for this). Can you speak to the tenant? Everything sounds complicated, and if you want the tenant out soon you won't achieve this through court processes. You could offer to write off arrears if the tenant leaves promptly.