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Unpaid rent


bristol1

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We are landlords letting to students and one of our students has just walked out half way through her tenancy and neither she nor her mother will answer phone calls or letters. I know that we can make a claim through the Small Claims Court for unpaid rent, but do not know whether we should start proceedings now whilst she owes us two or three months rent (can we claim for future rent which is not due yet but looks certain to be unpaid?) or do we wait until July when the tenancy is due to end and then claim for all unpaid rent?

The agreement is an assured shorthold tenancy with all 4 tenants jointly liable. Do we make the claim against all the tenants or just the defaulting tenant? If we just go for the defaulting tenant now, do we have an option of subsequently going after all the tenants?

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We are landlords letting to students and one of our students has just walked out half way through her tenancy and neither she nor her mother will answer phone calls or letters. I know that we can make a claim through the Small Claims Court for unpaid rent, but do not know whether we should start proceedings now whilst she owes us two or three months rent (can we claim for future rent which is not due yet but looks certain to be unpaid?) or do we wait until July when the tenancy is due to end and then claim for all unpaid rent?

The agreement is an assured shorthold tenancy with all 4 tenants jointly liable. Do we make the claim against all the tenants or just the defaulting tenant? If we just go for the defaulting tenant now, do we have an option of subsequently going after all the tenants?

Hi Bristol,

I'm no expert but it it were me I'd try to speak to the other tenants to find out what is going on exactly. The longer you wait to claim the more money will be owed and the harder it will be to get it back...

Seeing as the tenants are jointly liable I'd go directly to the remaining tenants. If anything they may still be in contact with the defaulting tenant and able to put pressure on her to pay up, or at least get another person in to the property to fill the void she has left behind. If not you might find that July will come round and that room will still be empty and you'll have big hole in your cashflow!

If you leave them be they are more than likely going to just let it slide, move out next year and you'll be left with a whole lad of hassle and paperwork to try to get your money back.

Ps I've also found that with student tenants there is a tendency to try to withhold the last month's rent and use it as hostage against their deposit if they have any concerns about getting it back which will probably be the case here so make sure you're covered for that!

Try this website: http://www.landlordaction.co.uk they may have some info on there that can help you...

Let us know how you get on!

Tim

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My advice for what it is worth is to forget the future rent payments......not worth the hassle.

Re-let the room as soon as you can and get some money in.

By all means chase the outstanding rent payable and I am guessing the Mother was the guarantor?

Send one recorded final letter to state that you will be placing the debt in the hands of Debt Collectors and also through the County Courts to reclaim the money so it would be in their interest to pay any outstanding rent now rather than accruing the debt to mount up with the consequences that brings with a visit from the Court Bailiff's to repossess property and goods..

Inform the mother, if she was the guarantor, that you will hold her liable as well for due outstanding payment.

It might make them sit up and think.

But do not let them get away with it.

Mel.

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Hi Bristol,

I'm no expert but it it were me I'd try to speak to the other tenants to find out what is going on exactly. The longer you wait to claim the more money will be owed and the harder it will be to get it back...

Seeing as the tenants are jointly liable I'd go directly to the remaining tenants. If anything they may still be in contact with the defaulting tenant and able to put pressure on her to pay up, or at least get another person in to the property to fill the void she has left behind. If not you might find that July will come round and that room will still be empty and you'll have big hole in your cashflow!

If you leave them be they are more than likely going to just let it slide, move out next year and you'll be left with a whole lad of hassle and paperwork to try to get your money back.

Ps I've also found that with student tenants there is a tendency to try to withhold the last month's rent and use it as hostage against their deposit if they have any concerns about getting it back which will probably be the case here so make sure you're covered for that!

Try this website: http://www.landlordaction.co.uk they may have some info on there that can help you...

Let us know how you get on!

Tim

Hi Tim

Thanks for the reply

I have spoken to the other tenants - they do not know what is going on and are also owed money for bills.

I have put some pressure on the other tenants but do not want to overdo it in case they withold their last months (or even more) rent.

I think the best course for the momement is to have a go at the tenant again and her mother.

Bristol1

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My advice for what it is worth is to forget the future rent payments......not worth the hassle.

Re-let the room as soon as you can and get some money in.

By all means chase the outstanding rent payable and I am guessing the Mother was the guarantor?

Send one recorded final letter to state that you will be placing the debt in the hands of Debt Collectors and also through the County Courts to reclaim the money so it would be in their interest to pay any outstanding rent now rather than accruing the debt to mount up with the consequences that brings with a visit from the Court Bailiff's to repossess property and goods..

Inform the mother, if she was the guarantor, that you will hold her liable as well for due outstanding payment.

It might make them sit up and think.

But do not let them get away with it.

Mel.

Hi Mel

Thanks for the reply.

I don't think I can legally re-let the room. She still has keys, her stuff is there and she has not told me she is leaving.

However I think your advice to go after the mother (who is a guarantor) and the tenant with recorded letters threatening a County Court Judgement and/or debt collectors is good advice. Also a CCJ against them will affect their credit rating.

Bristol1

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Hi Mel

Thanks for the reply.

I don't think I can legally re-let the room. She still has keys, her stuff is there and she has not told me she is leaving.

However I think your advice to go after the mother (who is a guarantor) and the tenant with recorded letters threatening a County Court Judgement and/or debt collectors is good advice. Also a CCJ against them will affect their credit rating.

Bristol1

Hi Bristol - Just a quick one cos I spent most of yesterday reading forum posts instead of doing any work... <_<

I spoke to a friend of mine who mainly does university lets etc and he said that the key is always through the parents. He found that sending letter explaining the legal situation and consequences to the parents + setting a date for them to get back to you before you hand the matter over to debt collectors is usually an effective way of getting a response.

He also said that once when he got to the bottom of things it turned out the student had been hiding the debt from his parents as he'd spent the money on something else (beer probably) and had been intercepting mail too. I guess one way of getting around that is to telephone if you have a number.

He also mentioned that when you send a letter it can be good to offer them another solution (like making small monthly payments to clear the debt or increased rent for the rest of the time remaining rather than a lump sum now) or they can panic about the mounting debt and bury their head in the sand!

Gook luck!

Tim

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Hi Bristol - Just a quick one cos I spent most of yesterday reading forum posts instead of doing any work... <_<

I spoke to a friend of mine who mainly does university lets etc and he said that the key is always through the parents. He found that sending letter explaining the legal situation and consequences to the parents + setting a date for them to get back to you before you hand the matter over to debt collectors is usually an effective way of getting a response.

He also said that once when he got to the bottom of things it turned out the student had been hiding the debt from his parents as he'd spent the money on something else (beer probably) and had been intercepting mail too. I guess one way of getting around that is to telephone if you have a number.

He also mentioned that when you send a letter it can be good to offer them another solution (like making small monthly payments to clear the debt or increased rent for the rest of the time remaining rather than a lump sum now) or they can panic about the mounting debt and bury their head in the sand!

Gook luck!

Tim

Hi Tim

Thanks for that. There is some good advice in your reply which I will take when I write to the mother.

Bristol1

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Hi Bristol,

Just something I'd like to add - by the way I agree with Mel on this about re-letting asap.

Take a minute to think about what has happened here - student has packed in Uni by the sounds of it and saddled mother with loads of debt. No wonder she is not answering phone and is well hacked off. Getting your adult child to the university stage is a struggle for most families.

Write pointing out the guarantor thing in plain English whilst sympathising with her situation. She has signed a legal undertaking and you and going to enforce it. Suggest a figure to settle things and see if you get it if not start proceedings yourself. This will be a learning curve for you and good experience for the future.

Good luck,

Mortitia

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Hi Bristol,

Just something I'd like to add - by the way I agree with Mel on this about re-letting asap.

Take a minute to think about what has happened here - student has packed in Uni by the sounds of it and saddled mother with loads of debt. No wonder she is not answering phone and is well hacked off. Getting your adult child to the university stage is a struggle for most families.

Write pointing out the guarantor thing in plain English whilst sympathising with her situation. She has signed a legal undertaking and you and going to enforce it. Suggest a figure to settle things and see if you get it if not start proceedings yourself. This will be a learning curve for you and good experience for the future.

Good luck,

Mortitia

Hi Mortitia

Thanks for that. I am now in the process of writing to mother and daughter giving a time limit and threatening to take action through the small claims court

Bristol1

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Re the re-letting.

If the tenancy agreement is a joint one, as it seems to be, then OP can't re-let the room as the room is already let to he 'housemates' on their AST.

If the housemates want someone into the room to contribute to the rent, then LL may be willing to (but doesn't have to) agree to re-assigning the tenancy (if missing girl agrees) or terminating & re-issuing tenancy (if outside fixed term). Missing tenant should agree as it would terminate her responsibility for future rent.

Landlord has no obligation to chase missing tenant - remaining 3 are jointly liable and so will have to find the rent themselves. Presuming thats the case then any extra rent housemates end up paying could be claimed from missing tenant BY THEM through small claims.

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Hi Bristol1

How do you know that the tenant has walked out of her course? Do you have definitive proof? You are correct that you cannot re-let the room with her items in it especially since the tenancy is joint and several. You could also write to the tenants requesting that they make up the shortfall in rent. It is a joint and several liability tenancy and they are legally liable to pay the full amount of rent between them.

You could also then send a letter as suggested to the mother advising that if the arrears are not cleared within say 14 days, you will commence legal action against her. It may be that she is unaware of her daughter's debts. I had that a few years ago in a Clifton property where two of the tenants wanted the third out because he was not paying his share. I contacted his father who was totally unaware of his son's problems. They had a heart to heart and he then took over the son's finances as regards the rent and flat expenses. The other tenants and the landlord were more than happy with this and, as I understand it, the son then successfully completed his course and learned how to manage his finances.

Next year insist on just one rent payment from all of them. Suggest that they set up a "household" account for all joint expenses like water, gas, telephone etc. I find that this reinforces the "joint and several liability" aspect to the tenants. :rolleyes:

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