Section 8 or 21 or PRAY!

[andrewjp]

6 mnth AST started 13 Feb 07, tenants paid 2 months rent up front, followed by 2 weeks rent (we agreed verbally to allow fortnight payments). Now owe 2 payments, with 3rd due on Friday (will owe £900). Whilst tenants are not avoiding us, they are very poor at communicating with us - they tell me they are having cash flow problems (self employed) hence no payments. They now want me to sign a form so that they can claim housing benefit. They are 'simple folk' and my feeling is they don't realise (despite telling them!) what impact this is having on me; rather than not wanting to pay.
Frustration is leading me to want to get them out ASAP, but am not sure what route would be best ie Section 8 or 21 - can anyone advise.
But, on the other hand if it is temporary cash flow and they can get HB (would then need to 'top up' £175), should i stick with them as they want to stay long term (not rent free obviously!!). How long does HB take to come through / does it get paid to Landlord?
Any suggestions / advice to my lengthy note would be appreciated

[pippay]

First thing that springs to mind is that neither they or you will know if they will have a successful HB claim and even if they do how much this will be for.. they may not be able to afford the top up !

All LA's vary in the length of time it takes to deal with a new claim.. but I've heard mention on here (and had personal experience of it) that it can sometimes take anything up to 10 - 12 weeks just to have it approved.

You can only have it paid directly to yourself if the Tenant agrees.

The thing you need to decide is whether you can go without the rent for this long only to then find out that they can't afford the top up / or they decide to pay other bills with the money if/when it eventually arrives.

By that time you'd have lost the opportunity to mitigate your losses sooner by issuing a S8 /21

I'm a tenant on HB but if I were in your shoes I know what I'd be doing ...

[Colincbayley]

Why not hedge your bets.

Issue the notice to quit and advise the tenants that you will withdraw the notice as soon as the rent in upto date ( Either by them paying up or via HB )

[Paul_f]

1. It's not a Notice to Quit but a Notice Seeking Possession if that's what you mean, and cannot be enforceable until 6 months have passed.
2. I would suggest the tenants were not referenced nearly well enough if at all, and as they are self-employed the basic necessity is that of a guarantor. You get the tenants you ask for!