Tenant refuses to pay rent.

[minstrel]

I have made a very bad mistake with a current tenant.

Many years ago I took in some lodgers.This worked so well that,rather than sell the property, I decided to continue to let it as a shared house and the combined income would pay for both my new home and my old property. This has worked admirably until now.

Even though I did not live in the property I created a completed a house share agreement with each lodger/tenant citing myself as resident owner. I have led a blessed existence to date with no problems of any significence, other than that of periodic repair or replacement of appliances,etc.

Imagine my shock when new tenants, A couple, moved in June 10th 2012, stopped paying their rent after seven weeks.From 1st August onwards no rent has been paid. Initially there was a very plausible story of a customer not paying for work done and I would be paid as soon as this money was recieved. Then there was a story of work being scarce and I would be priority when work picked up again.It took more than a month before I began to realise that I was being lied to and that it was unlikely that I would ever see any rent from these people so I asked them to leave. He then promised that he would look for another place and pay some of the arrears but nothing was offered to me and each time I asked there was no alternative accommodation found.

Last Wed,24th we met at the house and I was told that they would not pay rent as they needed to save up to get another place, He also said that they would be gone within a month. Obviously this will not happen. They will continue to live in my house until I do something about it. Idon't know what to do.Ihave a deposit, which I have not registered anywhere and I feel my position is complicated by the fact that I do not live on the premises yet the original agreement puts me as resident landlord. I could move back into the premises as I've always kept a room for myself at the property,but I've been told that this would not be sufficient to validate the house share document.

I really need some help and advice on this.

What a marathon for a first posting.

[snorkerz]

Okay, forget what the paperwork says - your tenants have an assured shorthold tenancy and (unless they leave voluntarily) you will need a court orde to get them out.

This also means that you are breaking the law by not having protected their deposit in a government approved scheme. There is no way out of the fact that you could now be sued for up to 3 x the value of the deposit, but we'll talk about how to reduce the risk later.

Can you please advise if the 'agreement' you have is for any set period of time - maybe 6 months from 10/6/12 to 9/12/12?

Can you also advise if the agreement makes any mention of 'section 8 or schedule 2 of the 1988 Housing Act (unlikely to, but fingers xed)

[minstrel]

Hi Fyldeboy, You sound as if you certainly know what you're talking about.Good.

The agreement states "The Period Six months beginning on 10th June1212." and does not mention Section 8 or Schedule 2 of the1988 Housing Act.

[snorkerz]

Hi Fyldeboy, You sound as if you certainly know what you're talking about.Good.

The agreement states "The Period Six months beginning on 10th June1212." and does not mention Section 8 or Schedule 2 of the1988 Housing Act.

Okay, you have 2 options.

1) issue a section 8 notice under grounds 8, 10 & 11 giving the tenant 14 days notice before you can start eviction proceedings through the courts. Unfortunately, the courts will not be able to order the tenant to leave before 9th December. The court will also make an order that the tenant pays you any missing rent, but whether you can enforce such an order is a different matter - if he has no money then you have little chance - the phrase 'you can't get blood out of a stone' springs to mind. It is unlikely you will get a court hearing before Christmas anyway (usually about 6 weeks from application) and the judge is likely to give your tenant 14 days if possession is granted. epending on the level of unpaid rent, eviction may be at the judges discretion. If the tenant doesn't leave when ordered, you will have to organise court bailiffs - and that can add many more weeks onto the process.

Your other option is section 21.

Unfortunately, you can not currently issue a valid section 21 notice. If you were to either

1. Return the tenants deposit in full; or
2. Obain the tenants (written) permission to use the deposit aginst the unpaid rent

You could then serve a notice under section 21(1)( giving the tenant 2 months notice. If he doesn't leave then it's a court application again. This would not usually involve a court hearing and would result in a possession date around 6 weeks after the application. There is a chance that due to the deposit protection discrepancy, and the lack of clarity regarding the tenants status, that a hearing may be called, and that will delay matters.

You can obtain free advice on here, but there are companies (including my own) who will do all the paperwork for you to make matters easier and you have the peace of mind that things are being done correctly.

[minstrel]

Hi,

Would a text message, giving permission to use the deposit against rent arrears, be acceptable.

Could I go after this guy for bankruptcy. I have already lost two long term tenants because of him and he is quite an expert at creating turmoil among people by telling half truths and lies.

[snorkerz]

Hi,

Would a text message, giving permission to use the deposit against rent arrears, be acceptable.

Could I go after this guy for bankruptcy. I have already lost two long term tenants because of him and he is quite an expert at creating turmoil among people by telling half truths and lies.

Well there is nothing in statute to say the agreement has to be in writing, indeed, the principle behind my statement is that if the deposit is used against the rent, then there is no deposit held, so the issue of deposit protection vanishes from that point forward.

So, the question is, if a tenant were to cite non-protection as a defence to an eviction, could you convince a judge that the tenant has agreed to hand the deposit over as rent, rendering the deposit non-existant. On balance, I think a text would be sufficient if you have a way of printing off texts and proving that it came from the tenant.

WRT bankrupcy, I am no expert in this field, but I suspect you would need to get your judgement first before investigating such actions. In many situations, bankruptcy is the route of choice for debtors, not a penalty!