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Bob1984
08-12-2011, 17:51 PM
Hi,

This is my first post on here.
My tenants started their 12 month tenancy in March. Rather than taking a deposit, I opted for 2 months in advance and put this clause in the contract and rent payable on the first of every month

Tenants agree to pay landlord two months rent in advance in the amount of £900, consisting of £450 when signing the contract and £450 when the tenancy begins.

All was fine until May were there was problems with cheques bouncing, although they remained 2 months in advance until now. Having had 9 bounced cheques, lots of excuses why payment hasn't been made and lots of arranged meeting with them cancelled by the tenants, I am completely fed up. Currently, they are now in arrears with no payment in November or December. I have sent several letters explaining they are in arrears and need to make payments within 2 weeks which have been ignored.

They have claimed advice saying that the contract does not deem them to remain 2 months in advance, am just wondering other landlords thoughts on the clause.

I'm not sure what my options are but would just like to end the tenancy but ensure i recoop all of my rent. Any advice would be greatly appreciated.

Thanks

Bob

Snorkerz
08-12-2011, 19:05 PM
I always insist on using a standing order when a tenant is paying rent.

In any event your tenant has defaulted payment and should be subjected to whatever the consequences are in your contract. In mine that is interest at 4% above base.

If you want them out, you are going to have to wait until the correct notice and notice period has been served and waited for

Ooh, base rate 0.5%, add 4% = 0.52%. On a £500 rent thats 0.71p a day - is it worth it?

Snorkerz
08-12-2011, 19:12 PM
Your 2 months in advance sounds like a deposit by any other name and could cause you problems under section 214 of the 2004 Housing Act. http://nearlylegal.co.uk/blog/2009/02/its-not-a-deposit-honest/

The deposit situation means you can't use section 21 to evict your tenants.

Does your tenancy agreement include a clause that says you can use section 8, ground 8 of the 1988 Housing Act?