How would you deal with new tenant not paying?
Discussion
This could go in Business, Legal or Finnance but I'll try here.
I had a tenant move into a property at the end of September, standard AST, months deposit & month up front. First rent due after moving in was the 27th oct, hasn't arrived.
First response was they thought it was due end of month, then they said it had been sent by bacs on the 28th, (Lloyds to Santander) yesterday lunchtime they were on the way to the bank to find out what had happened, last night they were waiting for the bank to call them back after spending all afternoon on the phone as they had stopped all payments due to somebody using there card in Malaysia.
I'm not sure that the bank would freeze the account once the card is cancelled and I would like to issue an eviction notice, wife says wait and give them a chance, what would others do?
Only way of contact with them is mobile and they seem to be switched off a lot.
The property is 250+ miles away so popping round is a bit of a pain.
I had a tenant move into a property at the end of September, standard AST, months deposit & month up front. First rent due after moving in was the 27th oct, hasn't arrived.
First response was they thought it was due end of month, then they said it had been sent by bacs on the 28th, (Lloyds to Santander) yesterday lunchtime they were on the way to the bank to find out what had happened, last night they were waiting for the bank to call them back after spending all afternoon on the phone as they had stopped all payments due to somebody using there card in Malaysia.
I'm not sure that the bank would freeze the account once the card is cancelled and I would like to issue an eviction notice, wife says wait and give them a chance, what would others do?
Only way of contact with them is mobile and they seem to be switched off a lot.
The property is 250+ miles away so popping round is a bit of a pain.
BoRED S2upid said:
Sounds like you manage it yourself from 250 miles away? I wouldn't fancy that. Got to be worth £50 a month for an agent to take away the stress?
Sorry to do the tangent thing, but do they really do anything to do with late payments? The minute my uncle's agent (well-established company in SW London) had a problem, they just handed the property back to him and said, "Here's a solicitor we recommend!"Hoofy said:
BoRED S2upid said:
Sounds like you manage it yourself from 250 miles away? I wouldn't fancy that. Got to be worth £50 a month for an agent to take away the stress?
Sorry to do the tangent thing, but do they really do anything to do with late payments? The minute my uncle's agent (well-established company in SW London) had a problem, they just handed the property back to him and said, "Here's a solicitor we recommend!"Yes I know it is a bit early etc, and had they been in a few months I would feel a bit different.
As for trying to manage it that far away I agree, we are accidental landlords on this, we do have family close by
Who is a builder so for maintenance problems things aren't to bad, also the best rate from the local agents was 10% and they don't chase late payments for that either.
I think if they were on the phone to me sounding devastated by the problem I'd feel different but I don't think they could care less.
As for trying to manage it that far away I agree, we are accidental landlords on this, we do have family close by
Who is a builder so for maintenance problems things aren't to bad, also the best rate from the local agents was 10% and they don't chase late payments for that either.
I think if they were on the phone to me sounding devastated by the problem I'd feel different but I don't think they could care less.
I find that quite often the first scheduled monthly payment will be the one that goes wrong. Can be a genuine banking eror, can be a laissez-faire attitude towards money & rent, or could be a genuinely bad sign. If they're picking up the 'phone and answering emails, that's generally a good sign.
What is the fixed period on your AST? You can't go for an S8 until they are 2 months in arrears. You can't get them out with S21 until the 6 month point at the earliest, and then only if AST is 6 month fixed period or has 6 month break clause/provision to terminate at 6.
What is the fixed period on your AST? You can't go for an S8 until they are 2 months in arrears. You can't get them out with S21 until the 6 month point at the earliest, and then only if AST is 6 month fixed period or has 6 month break clause/provision to terminate at 6.
Surprised at how reasonable most responses have been - I think the OP has a right to be suspicious.
Even if they thought payment was at the end of the month - I assume they would have setup a standing order? If so - I thought it was quite difficult to "cancel" a standing order so close to its due date - which means that sending the money by BACs instead would be a stupid thing to do, because they'd likely end up paying twice. Far more believable if they'd said they thought it was due at the end of the month, paid it a few days late and then corrected the payment date.
Also - BACS don't magically happen on there own. Either they had to transfer the money from online banking, or they had to go into the bank to do it. In both cases, they would have known whether the transfer was possible / successful or not and not had to go into the bank at a later date to "find out their account was frozen" - which, as you say is not the likely outcome of fraudulent card use anyway.
They are spinning a line - they have no intention of paying and never did.
Even if they thought payment was at the end of the month - I assume they would have setup a standing order? If so - I thought it was quite difficult to "cancel" a standing order so close to its due date - which means that sending the money by BACs instead would be a stupid thing to do, because they'd likely end up paying twice. Far more believable if they'd said they thought it was due at the end of the month, paid it a few days late and then corrected the payment date.
Also - BACS don't magically happen on there own. Either they had to transfer the money from online banking, or they had to go into the bank to do it. In both cases, they would have known whether the transfer was possible / successful or not and not had to go into the bank at a later date to "find out their account was frozen" - which, as you say is not the likely outcome of fraudulent card use anyway.
They are spinning a line - they have no intention of paying and never did.
I'm a landlord...this smells fishier than a fishy thing.
I've had this sort of thing before with tenants, usually a string of excuses blaming the bank for everything. They are normally just trying to hold out for every rent free day they can get out of you.
Did you do any references or do any checks?
I've had this sort of thing before with tenants, usually a string of excuses blaming the bank for everything. They are normally just trying to hold out for every rent free day they can get out of you.
Did you do any references or do any checks?
BoRED S2upid said:
Hoofy said:
BoRED S2upid said:
Sounds like you manage it yourself from 250 miles away? I wouldn't fancy that. Got to be worth £50 a month for an agent to take away the stress?
Sorry to do the tangent thing, but do they really do anything to do with late payments? The minute my uncle's agent (well-established company in SW London) had a problem, they just handed the property back to him and said, "Here's a solicitor we recommend!"
t agent.I do hope you have all your paperwork in order if your going down the eviction route, however thats a long drawn out stress you dont need, nor is it something you can trigger until 2 months in arrears or into 4th month of tenancy (assuming they are on a 6 month AST)
Keep on at them, tell them you want an update after each contact with bank so that you arent having to chase them for it. Proof of their problems would also help put your mind at ease.
Keep on at them, tell them you want an update after each contact with bank so that you arent having to chase them for it. Proof of their problems would also help put your mind at ease.
dazwalsh said:
I do hope you have all your paperwork in order if your going down the eviction route, however thats a long drawn out stress you dont need, nor is it something you can trigger until 2 months in arrears or into 4th month of tenancy (assuming they are on a 6 month AST)
Keep on at them, tell them you want an update after each contact with bank so that you arent having to chase them for it. Proof of their problems would also help put your mind at ease.
^^^^^Agree with above, wait until the tenant is two (2) months in arrears, the same being if tenant does not pay any rental monies by 27 November 2016, then start repossession proceedings by issuing a Section 8 Notice. Do not alter rental payment day, just be more considerate, reasonable with a tenant being a few days late with the rent.Keep on at them, tell them you want an update after each contact with bank so that you arent having to chase them for it. Proof of their problems would also help put your mind at ease.
The problem with serving a Notice (Section 8) for repossession is that the Notice can be unpredictable. If the Notice is for a breach of the tenancy agreement, and that breach is remedied by the tenant within the Notice period (14 days), then a landlord/agent can no longer rely upon the Notice to issue court proceedings. In your case if your tenant was to reduce the rental arrears to just below two months rental arrears, then it would be futile to continue with court proceedings.
Perhaps with any future tenant/s, you might either consider requesting a Guarantor to underwrite the rental payments etc. etc. and/or to request a larger deposit, possibly the Deposit being equal to two or more monthly rental payments.
Perhaps with any future tenant/s, you might either consider requesting a Guarantor to underwrite the rental payments etc. etc. and/or to request a larger deposit, possibly the Deposit being equal to two or more monthly rental payments.
No.
I had this text yesterday morning.
"Hi Richard, bob has taken the morning off to sort out, he has phoned the bank this morning, they said everything should be on it's way and will be in by end of day if not before. This is Bobs temporary number xxxx should you need to talk to him. I will be at work all day/night, however if you call I will call back when I get a chance. "
They then went missing all day and I've not heard anything since, calls and text go unanswered..
I had this text yesterday morning.
"Hi Richard, bob has taken the morning off to sort out, he has phoned the bank this morning, they said everything should be on it's way and will be in by end of day if not before. This is Bobs temporary number xxxx should you need to talk to him. I will be at work all day/night, however if you call I will call back when I get a chance. "
They then went missing all day and I've not heard anything since, calls and text go unanswered..
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