Rent Arrears / Issues With Tenants FAQ

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Rent Arrears / Issues With Tenants FAQ

Q1:

My tenant has paid her months rent but is moving out half way through, do I have to give her any money back?

ANSWER 1: No. She can move out whenever she likes, but has to pay for the correct notice period. She is also responsible for the property until her notice has expired, whether shes there or not. Posting keys through the landlords door early is not sufficient to negate her legal tenant obligations. Meter readings etc must be taken on the last day of notice, not the day she may have gone early. Who knows when they may go or may come back for a couple of nights.

Q2:

If a tenant signs a 6 month shorthold Tenancy Agreement do they need to give notice to terminate one month before the agreement expires or can they just walk out? If they should give one month's notice, but don't, can the landlord be compensated a month's rent out of the deposit?

ANSWER 1: A six month tenancy is just that and technically, they can move out at the end of the fixed 6 month term without having to give a months notice. A landlord should contact the tenant towards the end of the term to find out what their intentions are, but technically a tenant could just move out on the last day of the term without giving any notice.

Q3:

Can a tenant on housing benefit withhold rent until a repair has been done?

ANSWER 1: Any Tenant, whether DSS or not, is entitled to withhold rent if the Landlord is not meeting his obligations. However a reasonable time frame (dependent on the urgency and complexity of the issue) must be allowed and timescales and intended action notified to the Landlord in writing. For larger jobs the Landlord must be allowed time to obtain more than one quote. The Tenant is equally entitled to set a timeframe to resolve the issue and, if not met, can get 3 quotes, commission the works and deduct from rent payments until the bill has been paid for.

Q4:

I have a tenant on housing benefit who has not paid rent for 3 months and is still in the property. The letting agency who manages the property for me is issuing a notice of eviction, should I pursue tennant for arears?

ANSWER 1: It is worth contacting the council paying their housing benefit directly. Most have a policy that if a tenant is 10-12 weeks in arrears they will happily start to pay you directly. You can then continue to chase the Tenant for the rent arrears. However, once settled or reduced under the council limit, they will pay directly to the tenant again. We had a case of nearly 5 months arrears but by the end of the Tenancy between the Tenant and the Council they settled the account in full including our late payment charges. Do note, however, that councils will not factor these charges as rent arrears only the actual rent due.

Q5:

Can the landlord increase the rent during the tenancy?

ANSWER 1: Under and assured shorthold tenancy agreement the landlord can only increase the rent if it is agreed to by the tenant and then only when the amount of increase is 'reasonable'. You can't just add £300 a month to the current rent. It must be an inflationary increase or similar. if the tenant does not agree then you can't raise the rent. All rent increase proposals must be made in writing.

Q6:

My tenant has fallen behind with the rent, what should I do?

ANSWER 1: Serve a section 21 notice. As soon as there are two months of rent owing serve a section 8 notice. Tenant eviction through the courts can take between 2 and 3 months so be sure that all your paperwork is correctly prepared. It's advised to seek legal advertise.

ANSWER 2: Talk with your tenant and find out why there is late payment. Ask if there has been a job loss or any other change in circumstances. Suggest that the tenant apply for housing benefit or that a family member or friend helps out with the payments.

ANSWER 3: The previous answers are correct but they do not give a solution to recovering the monies. Write a final demand letter giving the defendant 14 days before legal action. If no response then obtain a CCJ either at you local county court or online www.moneyclaim.gov.uk and send to the sheriffs office for enforcement if over £600 or if below £600 issue a warrant with the county court bailiffs.

Q7:

Can my landlord increase rent? Can he do it in the middle of a fixed contract?

ANSWER 1: If the ast includes a rent review then it can be reviewed mid tenancy, otherwise it can be reviewed any time after the ast expires.

Q8:

Our joint tenants have stopped paying their rent as the man has lost his job. Should they be claiming housing benefit or similar to enable them to pay their rental?

ANSWER 1: Your tenant maybe entitled to benefits to help pay for living expenses. It depends on his/her personal circumstances. Your tenant can find out if they're entitled by going onto the direct government website

Q9:

My tenant wants to vacate the property early, what are my rights? Can I make them pay until the end of the term?

ANSWER 1: Yes you can. The official term is surrender. If they have commited to say a 12 month ast and wish to move out after 4 months they are still legally liable to pay the rent until the end of the term. However - getting them to do so may be a different matter especially if they have lost their job, move abroad or just dissapear. if the tenant has surrendered the tenancy and you wish to chase them for payment until the end of the term you must not under any cricumstances agree to the surrender. If you do, then you lose all rights to recompense. Posting the keys back through your door is not an acceptable form of surrender by the tenant - they have to give the keys to a nominated and authorised person - the landlord or their agent. one solution could be to arrange for them to buy themselves out of the contract - if they owe 8 months settle for 4 months rent and then accept the surrender once payment has been made/cleared. the question should be - what are the realistic chances of me getting my money. If they have no job therefore no money then your chances are pretty slim and you are going to struggle in getting any more from them. If they are moving because they just want to then obviously, stand your ground vigourously. Joining a landlord association will improve your chances of recovery as they offer excellent legal advice.

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