Tenant in arrears with no deposit and no guarantor

BlueC

Setting aside how we got in the mess since hindsight isn't helpful here, has anyone any suggestions on a practical and legal way forward...?

We bought a property with tenant-in-situ and unfortunately there was no deposit held from the tenant to transfer to us. The tenant is good and we'd like to keep her in the property. However, the tenant is now £600 in arrears and with no deposit and no guarantor it's not an ideal situation for us and we fear it could only get worse as the promises of repayment have so far not amounted to much.

What can we do here? The agent is saying our only real choice is to "give the tenant notice and find new tenants and be able to reference them and obtain a deposit".

However, to me it seems counter-intuitive and unfair to the tenant that she's not allowed the opportunity to have things put right but that we could just ask her to leave, which neither party wants!

Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

canaldumidi

BlueC said:

...
Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

Yes. Ask the tenant. She will either agree or not. But she does not have to, and let's be honest- why would she?

The tenant is good and we'd like to keep her in the property. However, the tenant is now £600 in arrears

Errr....

What does £600 reprsent? One months rent? Less? More?

First step is to contact T and request payment. Perhaps see if there is a particular short term reason for the arrears. Perhaps discuss a payment plan to get the arrears paid off over, say 3 months.

Or re-align rent payment date with her salary payment date if that is the cause of the problem.

But if you can't reach an agreement with her, then either a S8 Notice (G8, 10 &/or 11) and/or S21 Notice. Then evict and start again, this time doing it properly.

user1977

BlueC said:

Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

I'm a bit baffled as to why you think any of those would be helpful?

* what would be the point of a reference given you know they can't (currently) pay their rent?
* who's going to provide a guarantee if they are already in arrears? If they had a generous benefactor willing to step in, wouldn't that already have happened?
* if they can't even pay the rent, where are they going to get a deposit from?

Leaving that aside, what do you know about the tenant's circumstances? Does it seem likely they'll be able to clear the arrears in the near future?

MaryNB

BlueC said:

Setting aside how we got in the mess since hindsight isn't helpful here, has anyone any suggestions on a practical and legal way forward...?

We bought a property with tenant-in-situ and unfortunately there was no deposit held from the tenant to transfer to us. The tenant is good and we'd like to keep her in the property. However, the tenant is now £600 in arrears and with no deposit and no guarantor it's not an ideal situation for us and we fear it could only get worse as the promises of repayment have so far not amounted to much.

What can we do here? The agent is saying our only real choice is to "give the tenant notice and find new tenants and be able to reference them and obtain a deposit".

However, to me it seems counter-intuitive and unfair to the tenant that she's not allowed the opportunity to have things put right but that we could just ask her to leave, which neither party wants!

Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

Nobody in their right mind would sign up as a guarantor for somebody already in arrears. Also how will she pay you a deposit if she can't even pay the rent? I don't see how you can request a deposit if she's got a tenancy agreement already in place. I'm not sure what's the point in getting references checked. She's already a tenant and you can't change that if she fails referencing. You can only go through eviction proceedings to end the tenancy at this stage.  

You say it's unfair if she's not allowed to make things right but you also say the promises to repay have not amounted to much. What discussions have you had? Have you considered a payment plan?

Given how long it can take to evict a tenant you'd want to get the ball rolling now unless you can afford to take the hit financially.

BlueC

canaldumidi said:

BlueC said:

...
Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

Yes. Ask the tenant. She will either agree or not. But she does not have to, and let's be honest- why would she?

The tenant is good and we'd like to keep her in the property. However, the tenant is now £600 in arrears

Errr....

What does £600 reprsent? One months rent? Less? More?

First step is to contact T and request payment. Perhaps see if there is a particular short term reason for the arrears. Perhaps discuss a payment plan to get the arrears paid off over, say 3 months.

Or re-align rent payment date with her salary payment date if that is the cause of the problem.

But if you can't reach an agreement with her, then either a S8 Notice (G8, 10 &/or 11) and/or S21 Notice. Then evict and start again, this time doing it properly.

Thanks. Rent is £800. T missed a whole month and we agreed a 3 month repayment but so far only had 1 month and although T hasn't fallen further into arrears they have not made the agreed second repayment.

canaldumidi

BlueC said:

canaldumidi said:

BlueC said:

...
Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

Yes. Ask the tenant. She will either agree or not. But she does not have to, and let's be honest- why would she?

The tenant is good and we'd like to keep her in the property. However, the tenant is now £600 in arrears

Errr....

What does £600 reprsent? One months rent? Less? More?

First step is to contact T and request payment. Perhaps see if there is a particular short term reason for the arrears. Perhaps discuss a payment plan to get the arrears paid off over, say 3 months.

Or re-align rent payment date with her salary payment date if that is the cause of the problem.

But if you can't reach an agreement with her, then either a S8 Notice (G8, 10 &/or 11) and/or S21 Notice. Then evict and start again, this time doing it properly.

Thanks. Rent is £800. T missed a whole month and we agreed a 3 month repayment but so far only had 1 month and although T hasn't fallen further into arrears they have not made the agreed second repayment.

Then follow up with a stern reminder combined with a S8 G10 and G11 plus a S21. That might well be enough to encourage repayment.

And if it doesn't result in the payment plan being followed you'll have started the inevitableprocess.

BlueC

user1977 said:

BlueC said:

Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

I'm a bit baffled as to why you think any of those would be helpful?

* what would be the point of a reference given you know they can't (currently) pay their rent?
* who's going to provide a guarantee if they are already in arrears? If they had a generous benefactor willing to step in, wouldn't that already have happened?
* if they can't even pay the rent, where are they going to get a deposit from?

Leaving that aside, what do you know about the tenant's circumstances? Does it seem likely they'll be able to clear the arrears in the near future?

A reference would help us understand her affordability and also other circumstances, the same as it would for any prospective tenant.

I've no idea who's going to provide a guarantee. It's not our business. Perhaps borrowing from us is just the current path of least resistance, but if T had a deposit invested and a guarantor then maybe T might find the money to pay their rent?

I've no idea where they would get a deposit from. Again it's not our business.

A reference would help us to understand their circumstances, don't you agree?

elsien

Talking to them would help you to understand their circumstances. 

And I think you are overestimating what a reference will tell you. You already presumably know that she’s looking after the place, if in all other respects you think she’s a good tenant. 

A reference might give you some basic information about affordability but it won’t tell you if she’s been massively overspending for years and up to her ears in debt. For example. 

What reason did she give for missing the month’s rent and the second agreed repayment instalment. 

BlueC

Thanks I will ask the agent to speak to her again, although I do think they have recently tried.

Reason given was car repairs. I don't really have any desire to see T homeless or disrupt them but equally would prefer to have the whole tenancy in better shape than it is.

Will see what comes about after further discussion with T and also next month's rent due date.

Slithery

BlueC said:

A reference would help us to understand their circumstances, don't you agree?

No.

The only point of a reference is in helping you decide whether or not to take them on in the first place.

Once a tenancy exists it is irrelevant.

user1977

BlueC said:

user1977 said:

BlueC said:

Is there any practical way we can get the current tenant referenced, have a guarantor put in place if required, and also get a deposit?

I'm a bit baffled as to why you think any of those would be helpful?

* what would be the point of a reference given you know they can't (currently) pay their rent?
* who's going to provide a guarantee if they are already in arrears? If they had a generous benefactor willing to step in, wouldn't that already have happened?
* if they can't even pay the rent, where are they going to get a deposit from?

Leaving that aside, what do you know about the tenant's circumstances? Does it seem likely they'll be able to clear the arrears in the near future?

A reference would help us to understand their circumstances, don't you agree?

Not really. Where would the reference be coming from? Normally it would be from, say, a previous landlord. But would confirmation that she always paid the rent on time x years ago be helpful to you?