PDA

View Full Version : New tenant fails to pay rent by agreed Bank draft



investor68
17-02-2008, 03:12 AM
Hi,

Please can anyone tell me what my rights are to not proceed to let to a tenant?

I have letting agents, it was agreed the tenant would start his tenancy of my flat yesterday. He was due to go to the agents to sign the papers and pay the monies with a bankers draft.

Late in the afternoon he rang the agents to say he had problems getting his bankers draft but he would still take the tenancy with effect from Saturday, he would collect the paperwork on Saturday, and bring it back signed on Monday with the draft.

We both went to the agents yesterday when he started backtracking saying he wouldnt be able to come in with the draft and pick up the keys until next Saturday. He seems very blase about it all. Then he started blaming the agents saying he hadnt been given enough notice to get his draft.

I have major alarm bells ringing. I don't see why I should lose a week's rent as he has failed to keep to his part of the bargain.

Obvioulsy he has paid a deposit to the agents and paid for his references.

What should I do? I am that worried about him and his argumentative
attitude that I can only see problems ahead - can I choose not to proceed with him?

Any advice most welcome.

Many thanks

Sportingdad
17-02-2008, 07:07 AM
Until he's-agents signed the Agreement he's not in a tenancy, go down to the agent and advise you let it to a "Rugby team mate/friend" if your not comfortable and alarm bells are ringing..i'm not your mother but....

Colincbayley
17-02-2008, 07:37 AM
You are not bound to accept the tenant until such a time as the AST is signed and keys handed over.
If the tenant has not stuck to the agreed date for accepting the tenancy then he has broken the agreement and you owe him nothing.

Why has there got to be a problem with the bankers draft, can't he get cash??

If you are worried, walk away and find another tenant.

davidjohnbutton
17-02-2008, 08:02 AM
Forget this guy - this is an early indication of inability to pay - thank your lucky stars its happened before you let him start the tenancy rather than when he is in possession running up arrears.

Tell the agent to advise the guy that the offer is withdrawn. Move onto the next applicant.

Provided you have the money, it takes less than 10 minutes to arrange a bank draft and even if there was some unforseeable reason why the bank could not draw it up there and then - cash can be withdrawn over the counter (I assume the sum is well in excess of daily drawing limits for cash dispenser). Conclusion - he has not got the money!!!!!!!

johnboy
17-02-2008, 08:14 AM
If he cant come up with the agreed amount on the start of the tenancy what are the chances of it happening again when its started??? Very high if you ask me, you are better off with a short empty period and a better more reliable tenant.

investor68
17-02-2008, 16:34 PM
Many thanks for everyone's replies. You have confirmed what I was thinking myself - I had been waivering between thoughts of giving this tenant a second chance to produce the draft as I want to avoid a void period but as everyone has said I probably have had a lucky escape and much as I don't want (and really can't afford) a void period, I agree I'd be better off losing a few weeks' rent now than having a problem, possibly non-paying, tenant in occupation.

I'm sure this will go down like a lead balloon with him when he hears the news as it means he will most likely lose his deposit and the fee he paid for references.

jeffrey
17-02-2008, 16:37 PM
I'm sure this will go down like a lead balloon with him when he hears the news as it means he will most likely lose his deposit and the fee he paid for references.
But surely that's his fault, one way or another. He has failed you, not vice-versa.

bagpuss
18-02-2008, 19:27 PM
I'm sure this will go down like a lead balloon with him when he hears the news as it means he will most likely lose his deposit and the fee he paid for references.

We turned down student tenants that took over three weeks to get back to us re signing the AST, providing guarantor details etc. I felt a bit guilty at first, when they emailed back asking why we weren't going with them after all, but they eventually admitted that after our decision not to let to them they'd decided not to come to the University this year after all. I'm sure that they were thinking this through during the three weeks we were waiting for them to sign with us and that's the real reason they didn't get a move on in the first place. They could just have easily have pulled out and left us with no tenants and I'm sure they wouldn't have lost any sleep over it.

I'm realising that you have to toughen up in this game.

jeffrey
18-02-2008, 21:59 PM
I'm realising that you have to toughen up in this game.
Sadly, yes. Welcome to reality, mate.

Sportingdad
19-02-2008, 07:24 AM
Agreed, you have to put time constraints on everything, after 3 months of a 6 month tenancy I always write to the tenants and ask if they are staying on, I give two weeks to respond to my letter or as it's says I will assume that your leaving and remarket the property. If they say they are staying on I get the new agreement ready for signing and expect it signed in two weeks..if not I market the property...I have had too many people say they are staying on only to advise on the last day they are leaving (only so nobody invaded thier space during last 2 months !) hence a void period of the tenants fault..............did they lose any sleep.....no

heather5
19-02-2008, 18:39 PM
From tenant perspective - the place I'm in now - I got between Christmas and New Year with move in on 2nd January.

The agency insisted on a banker's draft (first time ever in my 20+ years of renting) ... but on phoning the bank was told it would take 2 weeks to sort out!! And I only had 1 week to get it to them!!

Normally I do direct transfers via my online bank account but the agency wanted Banker's draft despite offering the transfer option.

Something I was told by the bank - which then convinced the agency that I could do direct transfer rather than Banker's draft - was that even a banker's draft these days can be CANCELLED - due to new legislation (don't know what the legislation is).

So basically - as they were also with the same bank as me - they got their money the next day.

If I'd really had to do a banker's draft - I'd have been a week late in signing!!

jeffrey
19-02-2008, 18:55 PM
1. Bank draft CAN be obtained same day, if account-holder orders it early in day (and has enough cleared funds!)
2. Better is a CHAPS electronic payment (which used to be called "Telegraphic Transfer"). Recipient receives cleared funds more or less at once. Unlike BACS (telephone banking etc.), however, CHAPS costs about £20 to £25 which is about what a Bank Draft costs.