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rent arrears


shan

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hi everyone

i have a tenant that is messing me around with the rent now for the last 2 years continuosly paying 10 days late and sometimes not paying at all until he is pressed to do so, he is now 1 month in arrears as he failed to pay the rent for march, i have sent many e mails demanding payment, he never replies to any of them and never answers the phone, iv'e had enough of him and intend to issue him with a section 21 4a notice as he has been on a periodic tenancy for over 3 years now.

After he's out i intend to sue him for the rent arrears,

i just wondered if i am entitled to sue for interest as well as the rent arrears because the original AST states that

" interest is payable at the rate of 4% above the bank of england base rate from time to time prevaling on any rent due from the tenant which remains unpaid for more that 14 days"

He's in full employment and has a well paid job.

didn't know if the law has changed on this in favor of tenant rent arrears

look foreward to some advice thanks

shan

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Hi Shan,

Usually paying rent 10 days late constantly is a sign of wages hitting bank account after rent due.

However, it does seem that you have been very tolerant so get rid and start again. The rental market is very buoyant right now

The smart thing would be to issue a County Court Summons or Money Claim Online for the back rent before he moves out as once he goes he is highly unlikely to give you his new address. If he pays up all well and good but if not you could get him traced to recover the debt once you have a judgement.

You could go for the interest but the judge will have the final say as to your award. 4% over bank base rate sounds impressive but just have a look at what bank rate is!!

Good luck with that,

Mortitia

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Hi Shan,

Usually paying rent 10 days late constantly is a sign of wages hitting bank account after rent due.

However, it does seem that you have been very tolerant so get rid and start again. The rental market is very buoyant right now

The smart thing would be to issue a County Court Summons or Money Claim Online for the back rent before he moves out as once he goes he is highly unlikely to give you his new address. If he pays up all well and good but if not you could get him traced to recover the debt once you have a judgement.

You could go for the interest but the judge will have the final say as to your award. 4% over bank base rate sounds impressive but just have a look at what bank rate is!!

Good luck with that,

Mortitia

thanks for you advice Mortitia, when issuing a county court summons online before he moves out do i have to state how much im claiming for because when he does move out he will most likely not pay the last 2 months then it will be 3 months he will owe, thanks for your help

shan

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Yes, you do have to say how much you are claiming in unpaid rent up until the day you submit your claim. You cannot claim for monies that may not be paid in the future.

If he fails to pay the last 2 months rent you could take some off the deposit - I hope it is protected or he will be making a claim against you?

If he still owes rent after departure you will need to issue another claim to get that rent too. Each claim costs around £75 but he will have to pay costs as part of the settlement.

You could wait and start a claim for the whole amount after he departs but you could be in the position of not knowing his address for the court to send the papers to. That is a decision only you can make.

Mortitia

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Shan,

If I were you, at this stage I would hold off any claim at least until departure following your Section 21 termination notice.

You're tenant won't be overjoyed with the notice, so I would not make his situation potentially worse with a money claim summons now. You will want the tenant to depart quietly on the date specified for termination.

With only a few week's rent in arrears, let alone interest, the better advice may be to write the amount off (or against his deposit if you both can agree to that), let this tenant go, and, as they say, move on.

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  • 1 month later...
Shan,

If I were you, at this stage I would hold off any claim at least until departure following your Section 21 termination notice.

You're tenant won't be overjoyed with the notice, so I would not make his situation potentially worse with a money claim summons now. You will want the tenant to depart quietly on the date specified for termination.

With only a few week's rent in arrears, let alone interest, the better advice may be to write the amount off (or against his deposit if you both can agree to that), let this tenant go, and, as they say, move on.

Half the problem with recovering money from absconded tenants is actually locating them in th first place. You need to exercise due diligence and ensure that you track down them down usig the correct means and utilising the services of a trusted entity to do the hard work for you! :unsure:

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