Tenants not paid the rent in three months

Jezzb123

Hi, We gave 3 months notice to tenants that we would not be renewing the Tenancy when it runs out of the 26th June 2023. They stopped paying the rent the following month, ( Which we hadn't increased in 4 years) in March, and currently have not paid anything. We have served a section 8 then a few weeks later, when they were 3 months in arrears a section 21. We have spoken to the council who they said they went to, but the council will not offer any help as they are in rent arrears.  They want an additional month ie 26th July, which they want to add this rent to a payment plan over 8 months. Unfortunately I did not put the deposit into a TDS, but they have agreed to having the deposit to be used as part of the rent arrears. My partner wants to charge them the additional months rent and the 1st of the payment plan. She also wants to go to court for a possession order. straight away. Messages between us are getting fraught.   I would rather agree to a payment plan over 8 months and only go for a possession order if they haven't moved out by the 26th July, as we've been told that these orders take 3 - 4 months and they would have moved out anyway ? Thankyou 

GDB2222

If you didn’t protect the deposit, you have a major problem.

MultiFuelBurner

As above your failure to protect their deposit could.cause you a major headache should the tenants realise what am error you have made.

We don't do deposits anymore. They are seldom worth the extra time, cost and effort.

(Base on letting properties for the past 20+ years)

MultiFuelBurner

GDB2222 said:

If you didn’t protect the deposit, you have a major problem.

You really need to read this urgently

https://forums.moneysavingexpert.com/discussion/comment/67759912#Comment_67759912

MEM62

Jezzb123 said:

Unfortunately I did not put the deposit into a TDS

Then your tenant has you over a barrel - even if they do not realise it yet.    

Robbo66

GDB2222 said:

If you didn’t protect the deposit, you have a major problem.

Only if the Op is relying on a Section 21, given the tenant is 3 month in arears and a Section 8 has been served then they should still get possession as Sec 8 Grd 8 is a mandatory ground

Sarah1Mitty2

GDB2222 said:

If you didn’t protect the deposit, you have a major problem.

How major, could the tenant get off with paying the arrears?

Jezzb123

Thanks everyone. I've read at length re deposit, it was £700 , which we have now given back before the section 21 notice was served. So I do understand that they can take me to court for three times that amount. However, main question is do I  agree to their offer of a payment plan over 8 months, or seek a possession order now rather than wait until 26th July ? I've read that the court process is at least 3 - 4 months and if if I get awarded I have slim chance of getting any arrears & costs back ? Thanks

Sarah1Mitty2

Jezzb123 said:

Thanks everyone. I've read at length re deposit, it was £700 , which we have now given back before the section 21 notice was served. So I do understand that they can take me to court for three times that amount. However, main question is do I  agree to their offer of a payment plan over 8 months, or seek a possession order now rather than wait until 26th July ? I've read that the court process is at least 3 - 4 months and if if I get awarded I have slim chance of getting any arrears & costs back ? Thanks

Did they sign a receipt for the returned deposit?

theartfullodger

Jezzb123 said:

Hi, We gave 3 months notice to tenants that we would not be renewing the Tenancy when it runs out of the 26th June 2023. They stopped paying the rent the following month, ( Which we hadn't increased in 4 years) in March, and currently have not paid anything. We have served a section 8 then a few weeks later, when they were 3 months in arrears a section 21. ...................

YOU don't have the right to enforce a renewed tenancy: Tenant is perfectly entitled to decline to agree/sign any proposed renewal.  (btw I favour landlords NOT renewing - it simply makes it more effort (paperwork) and time to evict tenant and gives tenants even more security of tenure). 

You mentioned you served s8 when they were 3 months in arrears: An s8g10 may be validly served if only 1p is underpaid for only 1 day so you could have served s8 (and sent very cheap message to tenant ) at one day after firts missed payment. 

Amazing how many agents & "gurus" appear unaware of this....

MultiFuelBurner

theartfullodger said:

Jezzb123 said:

Hi, We gave 3 months notice to tenants that we would not be renewing the Tenancy when it runs out of the 26th June 2023. They stopped paying the rent the following month, ( Which we hadn't increased in 4 years) in March, and currently have not paid anything. We have served a section 8 then a few weeks later, when they were 3 months in arrears a section 21. ...................

YOU don't have the right to enforce a renewed tenancy: Tenant is perfectly entitled to decline to agree/sign any proposed renewal.  (btw I favour landlords NOT renewing - it simply makes it more effort (paperwork) and time to evict tenant and gives tenants even more security of tenure). 

You mentioned you served s8 when they were 3 months in arrears: An s8g10 may be validly served if only 1p is underpaid for only 1 day so you could have served s8 (and sent very cheap message to tenant ) at one day after firts missed payment. 

Amazing how many agents & "gurus" appear unaware of this....

It's mainly not quoted as a tenant underpaying by 1p is not an issue. Again if it's the very first month of underpayment again that require good communication between LL and tenant to see what's gone wrong and what happens next not the slam dunk of an S8.

But yes you are quite right 1p/1day section 8 g10. (But wow what narcissistic LL would use that)