Help-Landlady gone bankrupt!

Fergie73

If I find out that my prospective tenant widtheld a months rent I would want to know why. I would also want to know for what other reasons they may take this course of action.

As a landlord, you have a perfect right to protect your interests. However, you should also remember tenants have that same right. Many professional people are renting at the moment, and there's no reason why anyone should put up with very poor treatment from landlords and agents. There are decent landlords out there (if you can find them) so you simply don't have to.

Unfortunately, with the BTL boom, there are now a lot of seriously bad landlords around, over-stretched with debt, no clue what they're doing, no care about tenants or the property they rent out. My last landlord obviously ran out of money before the place was finished, for example, and many things he promised would be done - sink fitted, blinds put in, shower fitted etc - wasn't done. I was patient, despite the fact that the place was uninhabitable for three months before withholding rent (had I simply left, I wouldn't have got my deposit back, so whithholding was the only option after three months of hell).

A landlady being bankrupt and the house being on the market but the tenant not being informed what's happening strikes me as a very bad and unsettling place to be too. I certainly wouldn't sit back and take that just so a potential next landlord sees as a meek, easy to walk over tenant.

The BTL boom has been very bad for good landlords (of which there are still many) because they all end up being tarred with the same brush. You'll probably see more tenants in future who're coming to you with a more cynical eye, and having had bad experiences such as mine and the OPs. So it's not really fair to jump to conclusions - good tenants don't withhold rent from good landlords. If you're a good tenant, you have to be pushed quite hard to it. But sometimes it's the only way to ensure you're even listened to, and definitely can be the only way to get your deposit back - I've also lost a couple of deposits for no reason whatsoever, one after leaving a place much cleaner than I found it. Going by the book, being a good little tenant and assuming everyone else will play fair with you is a mug's game.

pinkshoes

Given that the OP is very likely to be given 1 months notice anyway, why don't they just give their notice period instead, stating that (as agreed??? - would anyone check?), the deposit will be used as the last month/ 2 months rent?

That way, you can still live there, and won't need to claim a deposit back as it's being used as rent (perfectly acceptable), and can start looking for somewhere else.

alan44

Make sure you communicate with them (in writing), and stress that you have no intention of not paying anything you owe, but that you just want them to clarify your position re getting your deposit back/the property being sold, before handing any more money over. Stress that you have no intention of not paying anything you genuinely owe. That will buy you some time to find out properly from the CAB as well. They can't evict you without a court order, and courts act very much in favour of the tenant. You can always just pay it before it gets to that stage.


P.S. tenanted properties are very attractive to investors, so it may be in their interests to keep you happy in the current market.

HugoSP

Fergie73 wrote: »

As a landlord, you have a perfect right to protect your interests. However, you should also remember tenants have that same right. Many professional people are renting at the moment, and there's no reason why anyone should put up with very poor treatment from landlords and agents. There are decent landlords out there (if you can find them) so you simply don't have to.

I agree, there are bad landlords out there who simply don't know what they're doing. However the point needs to be made that there are disadvantages to widtholding rent. Not to say that it shouldn't be done but she should balance the pros and cons of doing this.

If her area is awash with unlet properties then she may simply be able to walk into a nice new place and carry on her life regardless of what she does, but if good landlords are hard to come by in her area, she may not want to blemish her record, if she can avoid it.

You're right, there are decent landlords but many decent landlords may not be able to sympathise with her actions and so may move onto the next applicant. After all, the landlords who are less likely to evict her illegally are the ones who will probably check her out more carefully. I know of LLs who simply send the heavies in to put the tenants out on the street with no deposit and rent payed up in advance, just because they ask for essential repairs. These sort won't ask questions because getting the tenant out when it suits them is easy for them - as they are criminals.

I'm not saying that it's not right for her to withold the rent - it may well be the best thing for her to do, and if she looks like losig her deposit I would for one understand. It's just that there can be real consequences of her doing this that can come up when she needs to find somewhere else.

This is probably the best advertisment I have heard of for the Tenancy Deposit Scheme

NymphFerry

Thank you to everyone who has replied. I have written to the recievers and included my rent, unfortunately my tenancy started before the law protecting deposits came into force so i'll have to see what the recievers say. Thanks again everyone, i'll let you know how i get on!

missimaxo

Nymphferry - who is the reciever in this case - is it the Official Receiver (OR) or an Insolvency Practitioner (IP) appointed by the OR?

The OR probably won't accept your rent (as they don't want to be associated with the tenancy and the other implications). They will try and pass the owners bankruptcy to an external IP to deal with the tenancy. Only checking as this may effect your situation (I work for the OR so have some experience of this).

Either way good luck. As for your deposit, if you paid it direct to the owner and it was not protected, you will probably not get it back, but will be classed as a creditor in the banktuptcy. Depending on the value of their assets and the total creditors, you may get some or all of it back when assets are realised but the trustee will be able to give you more details. If you know who the trustees are, give them a call and find out what is going on.