late rent

[CH1]

I have a couple both named on a 6 month AST. For the first time ever one of them couldn't pay their rent this month and informed me of some problem at work regarding getting his pay cheque. I asked him to pay as soon as poss. and by the 15th. He then informed me he's had to leave that job due to many probs. and is now on a temporary job, and said he'd pay as soon as he gets his salary through from his last employer.

They are currently on holiday due back today or next day and have been in touch a few days ago as they bank online and would transfer the money as soon as salary came in, but looks like its not in yet.

Should I apply late charges? in the contract it does state late fees will kick in after 14 days and now the rent is 14 days late. I have a good relationship with them and this is the first time the rent is actually late.

His other half has paid her rent. Do I apply charges or give him a further x days to pay or else late charges apply?

Any advice would be appreciated.

[Melboy]

I personally wouldn't.

If the Tenant pays you in a reasonable timescale, bearing in mind there have been problems with his job, then that should be OK IMO.

You could of course send a letter and state that on this occasion you will not be charging late payment fee's due to his recent and difficult circumstances...... and you do require rent payment within 7days BUT never let the non paying Tenant pull a fast one over you and think you are a soft touch.

Let us know how you get on.

Mel.

[Preston]

Hi

Generally I would do as Melboy suggests and send a letter confirming that on this occasion there will be no charge, but that in future there will have to be, to cover your own costs.

But I am a bit confused by the situation you have described. Is it a joint tenancy? If so, they are both jointly and severally liable for the full amount of the rent and I would certainly not advise you to agree to a situation whereby one person pays their "share" separately from the other. You should really have the full rent, all on the due date. Or, if they can only afford to pay part of the rent, then the amount they pay is for both of them and any arrears left on the account are owed jointly.

If you do treat them separately, you run the risk that any future action for rent arrears - and hopefully it wont come to this, but it may do - will become very confused. For example, notices need to sent to them jointly, not separately; rent receipts and statements of account need to be joint, not separate; and you dont want either of them to claim that you agreed to a rent reduction for them individually if the other one disappears.

Or maybe I have got the wrong end of the stick?

Preston

[CH1]

But I am a bit confused by the situation you have described. Is it a joint tenancy? If so, they are both jointly and severally liable for the full amount of the rent and I would certainly not advise you to agree to a situation whereby one person pays their "share" separately from the other. You should really have the full rent, all on the due date. Or, if they can only afford to pay part of the rent, then the amount they pay is for both of them and any arrears left on the account are owed jointly.

If you do treat them separately, you run the risk that any future action for rent arrears - and hopefully it wont come to this, but it may do - will become very confused. For example, notices need to sent to them jointly, not separately; rent receipts and statements of account need to be joint, not separate; and you dont want either of them to claim that you agreed to a rent reduction for them individually if the other one disappears.

Or maybe I have got the wrong end of the stick?

Preston

It is a joint tenancy and normally I'd get the full rent each month. However on this occassion when I learnt one of them had a problem with their rent due to job, and the other said she has her rent and can pay it on due date , then I let her pay her half of the rent. But you are right I should not treat them separately.

I think I'll have to clarify matters with them when they get back. I also wanted the rent paid by standing order but each of the last 2 months I get a text saying can I have your bank details (even though these were given to them at start of tenancy) then they either deposit cash into my account at the bank or transfer online as its the same bank group I get the rent the same day.