Rent Payment Terms Document

[Louis252]

I have been given the following advice for rent collection this is explained to the tenants on the move in day (read to them word for word) and they sign to agree to this.

It apparently works well and is very easy to manage. It seems odd to me and a little quick on the eviction front?

Any thoughts on working this way and/or policing it?

This works on rent being due on the 1st of the month (for all tenants/properties) if tenants move in on the 15th they pay a pro rata first months rent (15th to last day in month) then full month from the 1st of the following month.

IMPORTANT: This is not the exact wording it’s just how I remember it being explained to me. I am getting the exact wording of his document emailed to me shortly.


Rent is due on the 1st of the month; your standing order will be set up to leave on the 1st of the month with the first payment being due 1st XXXX 2010.
Rent must be in our account no later than the 7th of the month.

If rent is not received by the 7th of the month we will issue a late payment letter to you and your guarantor. A late payment fee of £20.00 will be applied to your account.
A charge of £5.00 per day will then be added to your account for up to a maximum period of 7 days until the rent is received. After this we will charge daily interest at 4% above the Barclays minimum lending rate until rent is received.
Fees are due immediately and all unpaid fees will be taken from your security deposit.

If rent is still not received by the 15th of the month we will visit the property to discuss the arrears with you. Failure to contact you at this point will result I a suspected abandonment notice to be put through the door. This notice will give 48 hours notice for us to enter and inspect the property.

On the 17th of the month we will visit and enter the property to check it has not been abandoned.

Locks will be changed on abandoned properties and we will pursue you and your guarantor for the rental arrears due.
Your deposit will be used to cover the cost of a lock change.

If you are found to be still living in the property or the property still holds your possessions you will be served with a Section 21 Notice for possession.
Arrears payment will be requested to prevent legal action against you and your guarantor.

Any rent/fees that remain outstanding after possession will be pursued via courts.

I understand and agree to above signed Tenant: Date:
Signed Agent: Date:

[Springfields]

It would be useful if you were to post the actual wording.

My personal thoughts are:

1. Its fee happy
2. Its contradictory
3. It does not comform to legal guidelines in terms of abandonment.
4. Its threatening

Its Not starting the tenancy in the best possible way. I would also be interested to know whats your understanding of a section 21

[Lawcruncher]

If the swingometer has "enforceable" on one side and "unenforceable" on the other it is swinging to a landslide victory for unenforceable.

[roryl]

I have never understood, and probably never will understand, the phenomenon of financial penalties for late payment of rent.

If someone cannot afford to pay their rent, it is likely that they will not be able to afford to pay any additional fees. It makes the prospect of the debt being settled unlikely. If someone refuses to pay their rent, they will, in all probability, refuse to pay the associated penalties.

Aside from that, there are two problems I have notice. Firstly, you'll find that 4% above the Barclays minimum lending rate is not very much. You mean 4 percentage points above.

And, if you change the locks on the property, it is extremely unlikely that you will find the tenant still living there. It is more likely that you'll find yourself hauled up in front of a Judge.

[Paul_f]

I have never understood, and probably never will understand, the phenomenon of financial penalties for late payment of rent.

If someone cannot afford to pay their rent, it is likely that they will not be able to afford to pay any additional fees. It makes the prospect of the debt being settled unlikely. If someone refuses to pay their rent, they will, in all probability, refuse to pay the associated penalties.A tenant cannot be liable for late payment of rent other than for "reasonable" interest, which is currently low. An agent or landlord cannot make a penalty 'charge' just because it might be a few days late.

[Glenys1198]

This is unenforceable. Follow it through and you risk a conviction under the Protection from Eviction Act 1977.

[Lawcruncher]

If the tenant signs a document that says: "If I am late paying the rent you can run me through with a sword" it is unenforceable.

[Louis252]

Where there is reasonable doubt as to whether a tenant has permanently vacated the premises and it is impossible to obtain express surrender, the safest solution is to terminate the tenancy by serving a notice requiring possession and commence possession proceedings. This can however take many months.

Where enquiries lead the landlord to believe that the property has been abandoned and the tenant has ceased to live in the property, it is important to make any necessary enquiries and take appropriate precautions to verify this beyond reasonable doubt.

Once completed, it is a sensible precaution to leave a notice at the property alerting any occupants of the landlord's intention to take back possession of the property. This is not an officially prescribed notice but the action is useful since it provides further evidence that the landlord has taken all possible steps to ascertain the whereabouts of the tenant and inform any occupier of his intention to re-enter the property.

A written notice can be put on the tenant's door headed - 'Notice of Intention to take Over a Flat/House'. It should be prominently displayed and contain the following information:

A declaration by the landlord stating his belief that the property has been abandoned must include dates; the landlord's name and address; the name of the tenant(s) and the address of the property; if affixed in the presence of a witness, their name should be added; a paragraph asking anyone who knows the whereabouts of the tenant(s) to contact the landlord; a paragraph stating that if the tenant(s) does not contact the landlords within specific period of time, it will be assumed that the tenant has surrendered the tenancy; advising the tenant to seek legal advice.

It has also been suggested that the notice should refer to the locks on the property being changed, pointing out that it may be unlawful for anyone to try to break back in, but to contact the landlord or agent if the tenants wish to reclaim occupancy. The fact that the tenants have not contacted the landlord is then further evidence of abandonment.

[jeffrey]

If the tenant signs a document that says: "If I am late paying the rent you can run me through with a sword" it is unenforceable.
But most 'assault' acts otherwise criminalised are not criminal if consensual.

[dominic]

This is grievous bodily harm, not assault.

There is a famous criminal case (involving sexual sado-masochism - which every law student remembers, curiously) ruling that one cannot legally consent to anything more than battery, with a couple of notable exceptions (such as sports, medical surgery etc).

[jeffrey]

Assisted suicide is not as criminal as it used to be- so maybe advance agreement to be run through with a sword might be OK.
KIDS: don't try this at home.