sam_ldn
23-04-2008, 16:50 PM
What can I recover from the tenants?
I am a private landlord renting out a flat and the tenant is perpetually late paying the rent, normally by only a few days but on several occasions it has impacted on my mortgage payments.
There is a standard AST in place saying that I can recover bank charges - but what bank charges can I reasonably recover?
So far, the charges incurred are:
1. Bank charges for a failed direct debit - the DD was for a mortgage payment and it failed because the rent was late going into the account.
2. Mortgage company charges of £35 for writing to tell me about the failed direct debit.
3. Cost of correspondence resulting from the letting agent formally writing to the tenant about the persistent late payment (they had already had a polite word, but to no avail).
The mortgage company’s letter also stated that if the DD failed a second time they would charge me an extra £85 debt counselling fee (not that I need this as I know exactly why the DD is failing!).
Based on my reading of the AST, I can pass the bank charges (1, above) on to the tenant, along with interest calculated on a daily basis for each day the rent was overdue. I can also pass on the cost of the correspondence (3, above).
Can I also charge the mortgage company fee (2, above) as this charge is being incurred as a direct result of the late receipt of the rent? For clarity, the bank account being used is only for the flat - rent going in, mortgage payments and service charges coming out - so it is clear that nothing else caused the DD to fail.
Also, if the mortgage company impose a debt counselling fee, can this be passed on as well? Again, this charge would only be incurred as a direct result of the late receipt of the rent.
Any help / guidance / suggestions gratefully received.
Sam
I am a private landlord renting out a flat and the tenant is perpetually late paying the rent, normally by only a few days but on several occasions it has impacted on my mortgage payments.
There is a standard AST in place saying that I can recover bank charges - but what bank charges can I reasonably recover?
So far, the charges incurred are:
1. Bank charges for a failed direct debit - the DD was for a mortgage payment and it failed because the rent was late going into the account.
2. Mortgage company charges of £35 for writing to tell me about the failed direct debit.
3. Cost of correspondence resulting from the letting agent formally writing to the tenant about the persistent late payment (they had already had a polite word, but to no avail).
The mortgage company’s letter also stated that if the DD failed a second time they would charge me an extra £85 debt counselling fee (not that I need this as I know exactly why the DD is failing!).
Based on my reading of the AST, I can pass the bank charges (1, above) on to the tenant, along with interest calculated on a daily basis for each day the rent was overdue. I can also pass on the cost of the correspondence (3, above).
Can I also charge the mortgage company fee (2, above) as this charge is being incurred as a direct result of the late receipt of the rent? For clarity, the bank account being used is only for the flat - rent going in, mortgage payments and service charges coming out - so it is clear that nothing else caused the DD to fail.
Also, if the mortgage company impose a debt counselling fee, can this be passed on as well? Again, this charge would only be incurred as a direct result of the late receipt of the rent.
Any help / guidance / suggestions gratefully received.
Sam