PDA

View Full Version : Tenant offering reduced rent (or none!) to landlord



sab
01-02-2005, 10:00 AM
:confused:

I am sorry if you've read this on the "old" forum. I am posting it in a hope that more readers mean more advice! There it goes again:

I have received a letter from my tenant in which she tells me that she won't be able to pay rent for 2 upcoming months. She claims that she has just found that that she will be unemployed in a month and that she has no savings. She is a lone parent of two children and she says that her wage doesn't allow her to save enough money to dip into her savings whilst she looks for a new job or until the housing benefit kicks in. She tells me in her letter that, although her tenancy runs till 29th of April, she will move out in the end of February so I could rent it to someone else and get paid. She says that she needs this time to be able to save enough money to move somewhere cheaper, to pay the deposit and rent upfront. She also says that she would need for me to give her a good reference, as otherwise no other landlord would take her on.
To be fair, I had no problems with this tenant for last two years and she paid whole first year rent upfront. She looked after the property and paid on time.
I am not sure as to the bargain she proposes- loss of three months rental (as she also did not pay for December, claiming family problems), offset by 6 weeks deposit and then she is out of my hair OR court proceedings with time delays and costs involved. I am aware that I could have the costs and interest awarded but having a judgement is one thing and actually getting the money is another, as if she is on low income or not working at all, instalments may be set quite low. The housing benefit takes ages to get sorted in my borough, which is Ealing, London and they won’t rehouse her till I have the possession order.
Do you think quick possession of the property may be a more realistic, "cut my losses" option or shall I issue a notice and start legal proceedings just in case but still give her a good references so someone else could take her on? She is not really a tenant from hell but I need to safeguard my income. I would appreciate your experienced advice, maybe you have been a party to such a bargain or maybe there was a thread about it before which you could point out to me?

Dan
01-02-2005, 10:22 AM
Hi Sab,

Yes you should issue a notice now because you can't rely upon her word to leave when she says she will. Then you would have to start the eviction process at the end of Feb. The eviction will actually help her with the council because they won't see her homelessness as voluntary.

As regards a "Good Reference" you must stick to the facts if you provide a reference. I have a feeling that, legally, you cannot give a good reference if the tenant has not been a good tenant.

I have had tenants who plead poverty and ultimately leave owing me £000s. However, they still manage to pay for their cable TV, mobile phones, computers, cars etc. It's a matter of priority and I would have thought that a roof over your head is one of the highest (Maslov's Pyramid).

Jennifer_M
01-02-2005, 10:31 AM
I'm just wondering something... How is she going to pay her next property rental if she can't pay you ?

What kind of reference is she going to give the next LL if she's got no job and can't prove her income ?

davidjohnbutton
01-02-2005, 10:36 AM
What I would do, in your shoes, is issue a S8 notice on the grounds of 2 months rent arrears - you cannot in any event take action on that notice until 14 days after service, which takes you up to the middle of February. I would visit her to deliver this notice, and get her signature on a copy to show she has received it.

At the same time, accept her idea of moving out at the end of February. If she has not done so, then imediately issue court proceedings. Tell her this is what you will do if she does not honour her agreement with you to move at end Feb and that she can collect a good reference from you in writing when she hands the keys over (i.e. she gives you keys with one hand and takes reference with other - literally).

The method above will preserve your rights if it all goes "bottom up" and will also minimise loss of rent. It's up to you if you then go after her for arrears of rent offset by the 6 weeks deposit - you will still be slightly out of pocket, but not as much as if you leave it til end of Feb before you even serve the notice.

Be aware that if you do go the court route - not only do you have £120 possession order fees to pay, but also £90 for the Bailiff. Certainly what she proposes saves you those fees - if the proposal bears fruit that is!

If you email me privately - I will supply you with the correct form of notice.

sab
01-02-2005, 13:27 PM
Thank you very much for your replies. Jennifer, very good questions! David; wouldn't most landlords require references BEFORE they let the tenant in? Therefore she may not go for the option of having references on a very moment she wants to move in somewhere else. What a pickle. You are all right, can't only rely on trust!
Once again thanks for your advice.