Rent in arrears

[Littlevoice]

Good afternoon everyone.

I am new to this forum and being a landlord in general. I am after some advise.

Basically I had my house sale fall through and rather than lose the house I was buying decided to do a buy to let on my current house. I had my house up for rent with a agent for £775, but then my cousin split up with her O/H so asked if she could rent the house, because of it being family I told her she could rent for £650 and I wouldn't need a deposit. She just paid the first month up front plus £50, so she could get her housing benefit sorted, and he ex had given her some money.

We drew up a Short Hold Tenancy Agreement that said that she would pay £650 on or before the 1st of each month.

After the first month she requested whether she could pay on a two weekly basis due her housing benefiting coming through,which I verbally agreed to, she then paid £275, then part way through the month paid £328 (I'm not actually sure where this amount came from).

However this is where it all started going wrong! She rang me and said she had no money on the day she made the £328 payment so wanted the money back. I said no as I didn't want this to become a thing, plus if it was any other landlord that would not happen. So up to that point she has paid £1303 which is just over 2 month rent. I said to her she could start paying the £300 from May 5th. As that would let her catch up money wise and we would be straight.

Last week I checked and she hadn't paid. I text her to ask when to expect the money and she said she was paying until the 12th and that she would only being paying £197 as as far as she is concerned she is paying £300 two weeks in arrears. This is how she gets paid from the housing benefit so that is how she will pay me.

I have formally written to her telling her she is in arrears and that given her a payment schedule, and have received a shirty email saying no that she will pay her way as she has told me.

 

Any advise on this situation?

My plan is to keep sending her the payment schedule logging what she has paid and what arrears she is in, then once she has been there for 4 months provide her with a section 21.

 

Is there anything else that I need to do. I have spoken citizens advice and they say I need to put she is in breach of contract. Problem is she is now claiming that we verbally agreed the arrears and as we have verbally changed the contract to two weekly I'm worried that it doesn't look good. 

Another thing to mention is she says she can't afford to pay the difference, this is the most annoying thing if this was legit I'd be more understanding, but weeks after she moved in she went to Greece, since moving in she's bought herself a large to for her bedroom, and on Friday when I thought the rent was due she was at the Chester races. I feel like she is totally taking the mick! 

[Melboy]

On this forum we have been advising for years and years never to rent your property to friends or family. Your present situation just reinforces this fact......again.

Breach of contract contained within your written tenancy agreement means you can issue a written warning giving your Cousin 7 days to come up with the rent arrears. Failure to do so will lead you on to take your property back but two things will come of this course of action......1. You have lost your Cousin as family. 2. It will be a haul to get rid of her from what you have written about her.

You do need though to take firm and positive action and I am sure you are very capable of doing this. Do not let the tail wag the dog! Shame you do not have a person acting as a rent guarantor on her behalf.

[Littlevoice]

I know in hind sight I have made lots of mistakes!

One other question, when I wrote a formal letter outlining the contract which says the tenancy begins noon 01 March 16, she is saying that she is not paying until the 3rd because I still had some stuff in a room. She actually had the keys the weekend before the 1st and was in there cleaning and redecorating but because I was having carpets in my new house I had limited room in the new house so left some boxes. But she signed the first so that is the legal date am I right, to be honest I'm not bothered about 2 days it's neither here or there but it's out of principal.

I wish I had an agent, but I didn't because she couldn't afford a deposit or fees so I was doing her a favour, totally thrown it back in my face.

 

[Littlevoice]

One last question, does it matter the amount of arrears, she is saying she is paying in arrears all the time, or when she leaves she will owe me £300 as that is how welfare pay her?

Also if she is in arrears does the 6 month min term apply, she has only been in for 2 months? 

Is it worthwhile me getting a solicitor to deal with the issue and seeking possession of the house? 

[Mortitia]

Even in the fixed term of the AST you can apply for a Section 8 possession via the County Court if the tenant is 1 month and 1 day in arrears.

The down side of Section 8 is that if there is any disrepair at the property and she goes to court with evidence of that the judge will adjourn for reports and your agony could go on longer.  But - since she is on a 6 month term you have nowt to lose in my opinion.  See about serving that notice now.

[Melboy]

That's the problem Mortitia this Tenant is paying in money as and when she feels like it so technically she is not behind with the rental payments and the Judge would probably take the same view as well.

[Mortitia]

Yes Mel but receiving the Section 8 would be a warning of court action.  As soon as tenancy is starting 4th month issue Section 21