firepool Posted April 17, 2012 Report Share Posted April 17, 2012 Hi My new tenant currently hasn't paid any rent since they have been in the property since 10th March 2012. I took a cheque (in a companies name) for 1st months rent and deposit which later bounced, and then they offered to pay me by bank transfer which I accepted but again, it turned out to be a cheque (from the same company) that they tried to pay into my account which bounced again after 2 representations. Tenant asked me for my bank details again but I'm reluctant to give them as I think the same thing will happen again, and as and when I issue a S8 the tenant may transfer money into my account before any court hearing thus invalidating the '2 months rent owed' rule. Prior to this I have been a Landlord for 5 years but with decent tenants so all this is quite new to me. Valuable lesson learned the hard way I feel. My question is: Can I ask tenant to pay me in cash? As I haven't received any rent yet. But it does state on the STA the payment method is bank transfer. Any help much appreciated. Link to comment Share on other sites More sharing options...
Mortitia Posted April 17, 2012 Report Share Posted April 17, 2012 Yes of course you can stipulate 'cash only'. Be prepared to give tenant a written receipt . Make out 2 receipts get tenant to sign both as you do as well. Keep one for your records. The day we abandon cash transactions I will be giving up landlording! With some tenants it is the only way. Mortitia Link to comment Share on other sites More sharing options...
firepool Posted April 17, 2012 Author Report Share Posted April 17, 2012 Yes of course you can stipulate 'cash only'. Be prepared to give tenant a written receipt . Make out 2 receipts get tenant to sign both as you do as well. Keep one for your records. The day we abandon cash transactions I will be giving up landlording! With some tenants it is the only way. Mortitia So just to confirm, even though it says on the agreement 'Bank Transfer', I can still ask for cash? And should I put this change in writing to the tenant? I just want to do everything properly so if it goes to court, they will see I've done everything correctly. Thanks for your reply. Link to comment Share on other sites More sharing options...
Carryon Regardless Posted April 17, 2012 Report Share Posted April 17, 2012 I may be wrong with this caution but seem to remember that if a T offers payment it goes against us to refuse. I just see a possible defence that they attempted to pay ?? On a S8 there is a discretionary clause that is for regular late payment of rent. I would hope that if the T's manipulate rents to be within the 2 months at hearing, with the additional clause a Judge might use his discretion to undermine the obvious manoeuvre. Possibly a vain hope though. Link to comment Share on other sites More sharing options...
LLAW96 Posted April 17, 2012 Report Share Posted April 17, 2012 1. A bouncing cheque carries serious implications for the issuer see bill of exchange act 1882. 2. In relation to ground 8 there must be two months/eight weeks etc outstanding at the date you issue your s.8 notice and at the date of the court hearing, therefore the ground can be defeated if the arrears are reduced below the mandatory level by the date of the initial hearing. In the circumstances it is common for landlords to include grounds 10 and 11. Ground 10 relates to there being arrears of rent (any amount) and ground 11 delay in payment both grounds are discretionary. So if by the time you get to court your tenant has defeated your ground 8 claim by making a payment you would still be able to seek an order based on grounds 10/11 if nothing else you should secure your issue costs. 3. You are on dangerous ground if you insist on payment in cash in your circumstances. Link to comment Share on other sites More sharing options...
firepool Posted April 17, 2012 Author Report Share Posted April 17, 2012 COR - I also saw that possible defence with their attempt to pay. LAW - 1. The cheques that the tenant wrote out for me were both in the name of a company and signed by the supposed owner of that company who is a supposed friend of the family. So I don't know if the tenant would have any black mark against their record bacause of this. 2. I understand the grounds 8,10 and 11 but what are the issue costs you talk about? And getting them back? 3. I think I'll leave out the insist on cash then but this would mean me having to give my bank details to the tenant. Should I just ask tenant how they wish to pay? The tenants housing benefit claim is currently being processed but the tenant seems to be delaying it for some reason (I have permission to discuss the claim with the council). Link to comment Share on other sites More sharing options...
Carryon Regardless Posted April 18, 2012 Report Share Posted April 18, 2012 2. I imagine these are the Court claim application cost. Giving bank details is an everyday occurrence, write a cheque and the info is there. To compromise an account additional access is required. To be honest though when I feel uneasy I use an account with very low funds. With HB I make it clear that these dealings are for the T, years ago I have spent far too long negotiating something that is a T responsibility. If a T ends up on HB and defaults I will go as far as diverting payments direct to me, by this time I expect to be going for repossession. I may pretend to listen to excuses but in truth my only interest is to understand the lies to be possibly fore warned. Ignore the corrupt, skint mates company, that's just more confusion. I deal with T, T deals with HB (as far as possble), T defaults they owe me not HB (any HB funds are a bonus). Link to comment Share on other sites More sharing options...
Mortitia Posted April 18, 2012 Report Share Posted April 18, 2012 I think I may have confused things by using the work 'stipulate'. I would suggest taking cash on THIS one occasion to clear things in light of previous rubber cheque. When I attended court on a S8 last year tenant turned up with £500 cash in an envelope to reduce the rent debt but judge would have none of it as he had not paid it into court the previous day in the correct manner. I had a legal bill of £900 + £2,500 owed rent. Judge immediately told tenant the cash would go towards my legal bill and that was reflected in the judgement. Was that unique? Mortitia Link to comment Share on other sites More sharing options...
firepool Posted April 18, 2012 Author Report Share Posted April 18, 2012 Thanks Mortitia, I hope that happens to me as well! COR - At the moment I'm speaking to HB to find out if the HB claim has been processed but they say they are waiting for more information from the tenant. Then when I speak to tenant they say they are waiting for a letter regarding the claim. All in all I've had enough of the excuses and lies so I'm trying to detach myself emotionally from it and just follow the correct procedure to evict them. I'm sending copies of the rent arrears letters to the council so they can maybe make a decision to pay HB direct to me. Link to comment Share on other sites More sharing options...
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