Tenant skipped the country owing money
Tenant skipped the country owing money
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fyfe

Original Poster:

202 posts

174 months

Tuesday 10th September 2019
quotequote all

I could do with some advice from the PH collective wisdom on some legal problems I have with my rental property.

I've had a tenant in place for most of the year and everything was fine at first. More recently they started making partial and / or late rental payments and only settled up after considerable chasing from me and the managing agent. They have since abandoned the property with no notice and left the country, taking all their possessions with them.

They have surrendered their deposit by email but still owe back rent and the payments that would have been due during the notice period (that wasn't given). I'm therefore down a 5 figure sum as of now plus any lost rent as I try to find a new tenant.

The story given for the abandonment does not wash and my belief is that their business (they were self-employed) is in financial difficulties. If it matters, they registered the property as the location of their business (something I only found out very recently) with Companies House.

Does anyone have any recommendations for options?


hyphen

26,262 posts

119 months

Tuesday 10th September 2019
quotequote all
Which country have they gone to, Do you know their address there.

If it's Iran or North Korea then best write it off! Otherwise find a debt collector who specialises in that region, you may need a court judgement first perhaps?

Edited by hyphen on Tuesday 10th September 14:33

fyfe

Original Poster:

202 posts

174 months

Tuesday 10th September 2019
quotequote all
They're in one of the commonwealth countries I believe. And no, I only have their listed business address in that country but I doubt it would take much sleuthing to find out more.

Mandat

4,631 posts

267 months

Tuesday 10th September 2019
quotequote all
fyfe said:
I could do with some advice from the PH collective wisdom on some legal problems I have with my rental property.

I've had a tenant in place for most of the year and everything was fine at first. More recently they started making partial and / or late rental payments and only settled up after considerable chasing from me and the managing agent. They have since abandoned the property with no notice and left the country, taking all their possessions with them.

They have surrendered their deposit by email but still owe back rent and the payments that would have been due during the notice period (that wasn't given). I'm therefore down a 5 figure sum as of now plus any lost rent as I try to find a new tenant.

The story given for the abandonment does not wash and my belief is that their business (they were self-employed) is in financial difficulties. If it matters, they registered the property as the location of their business (something I only found out very recently) with Companies House.

Does anyone have any recommendations for options?
Unless you want to go the legal route and try to track them down to chase monies owed, you seem to be in the fortunate position of now having vacant possession of the property, which you can let out again quickly.

I say fortunate, because the alternative could have been that the tenant stops paying rent but continues living in the property until you spend sufficient money, time and effort in getting a court order to evict them. There is also the risk of them causing damage to the property meaning that you could be even more out of pocket.

Regarding the companies house issue, I think that this is mainly irrelevant to the issue at hand.

hyphen

26,262 posts

119 months

Tuesday 10th September 2019
quotequote all
OP you would be best off looking for a debt collection company that takes a fee for chasing it down and leave them to it.

You could also advise the tenants that you will be getting a ccj type mark against them in courts, which if they are planning to return they may care about.

Dixy

3,651 posts

234 months

Tuesday 10th September 2019
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The only thing to do with a dead horse is dismount

jshell

12,078 posts

234 months

Tuesday 10th September 2019
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Dixy said:
The only thing to do with a dead horse is dismount
thumbup

austinsmirk

5,597 posts

152 months

Tuesday 10th September 2019
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I'd you've got until 31st Oct to try and get yr money back from abroad smile


for context (working in social housing), we write off £2.5 m PA of uncollectable tnt debt PA.

it'll be millions more we spend just refitting homes after the little darlings leave too, given the squalor they decide to live in.

anothernameitist

1,500 posts

164 months

Tuesday 10th September 2019
quotequote all
One of the commonwealth countries.

I'd move on to be honest, unless you can get a fixed fee quote to get some money back.

Unfortunately they have had you, but as above you have the deposit and a property ready to rent

tony wright

1,042 posts

279 months

Tuesday 10th September 2019
quotequote all
If they left the property in a decent state then you have gotten off lucky. Late payments normally evolve into not paying at all, followed by local council telling them to stay put till the last minute and costing you an arm and a leg. My nightmare tenant stopped paying and it took me 6 months before I got the property back. She broke the cooker door handle leaving a cooked chicken in the oven, when we eventually pried it open hundreds and hundreds of flys flew outeek. There was a big oil stain on living room carpet where her partner use to service his motorbike mad, She trashed the bathroom and finally, she had wallpapered the living room around her furniture so it looked like a room of shadows confused. Tracked her down through her parents so I could take her to court. First appearance date clashed with her holiday in Spain, so court rescheduledmad Finally she was found guilty, but pleaded poverty to the court (even though they rescheduled due to her holiday in Spainrolleyes) and decided £20 a month was a sufficient payment. Needless to say she made one payment then moved out of her parents house never to be heard of again.

21TonyK

13,302 posts

238 months

Tuesday 10th September 2019
quotequote all
Some time back we had a tenant do similar to us. Not 5 figs but well into the high 4's!

Anyway, we ended up writing it off. They'd gone back to Spain, had an idea where but no real evidence.

Just got the place rented back out ASAP.

Very bitter pill to swallow but a little consolation was HMRC caught up with "him" a few years later.

fyfe

Original Poster:

202 posts

174 months

Tuesday 10th September 2019
quotequote all
Thanks everyone. This aligns with my thoughts on the matter too - it could have been far, far worse.

So

28,176 posts

251 months

Tuesday 10th September 2019
quotequote all

If they were still in the UK I'd probably advise you to forget it.

If they are definitely abroad definitely forget it.

If they had any money they would have paid you already. They haven't got any money.

It's not a good use of your money chasing them or trying to sabotage their future.

Consider it a 5-figure lesson in not accepting the self-employed unless they are demonstrably successful long-term or with a home owning guarantor.


kestral

2,235 posts

236 months

Tuesday 10th September 2019
quotequote all
fyfe said:
I could do with some advice from the PH collective wisdom on some legal problems I have with my rental property.

I've had a tenant in place for most of the year and everything was fine at first. More recently they started making partial and / or late rental payments and only settled up after considerable chasing from me and the managing agent. They have since abandoned the property with no notice and left the country, taking all their possessions with them.

They have surrendered their deposit by email but still owe back rent and the payments that would have been due during the notice period (that wasn't given). I'm therefore down a 5 figure sum as of now plus any lost rent as I try to find a new tenant.

The story given for the abandonment does not wash and my belief is that their business (they were self-employed) is in financial difficulties. If it matters, they registered the property as the location of their business (something I only found out very recently) with Companies House.

Does anyone have any recommendations for options?
Don't be a Landlord.laugh

StanleyT

1,994 posts

108 months

Tuesday 10th September 2019
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Just having similar problems.

Not called Boris and lived at number 10 on that street?

mick987

1,827 posts

139 months

Thursday 12th September 2019
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Dixy said:
The only thing to do with a dead horse is dismount
Stop flogging it

Buster73

5,617 posts

182 months

Thursday 12th September 2019
quotequote all
Never spend good money chasing bad money.

Lemming Train

5,567 posts

101 months

Thursday 12th September 2019
quotequote all
fyfe said:
I could do with some advice from the PH collective wisdom on some legal problems I have with my rental property.

I've had a tenant in place for most of the year and everything was fine at first. More recently they started making partial and / or late rental payments and only settled up after considerable chasing from me and the managing agent. They have since abandoned the property with no notice and left the country, taking all their possessions with them.

They have surrendered their deposit by email but still owe back rent and the payments that would have been due during the notice period (that wasn't given). I'm therefore down a 5 figure sum as of now plus any lost rent as I try to find a new tenant.

The story given for the abandonment does not wash and my belief is that their business (they were self-employed) is in financial difficulties. If it matters, they registered the property as the location of their business (something I only found out very recently) with Companies House.

Does anyone have any recommendations for options?
You'll never see any of the money owed. That's the harsh reality and would be the case even if s/he were still in this country, never mind a different one. Write it off and move on.

Cyberprog

2,324 posts

212 months

Friday 13th September 2019
quotequote all
First things first, you need to sue them and get a judgement against them. The address of your property would be the last known good address you have for them.

That means if they do re-surface sometime in the next 7 years, you can have a crack at them, and you could possibly get their address abroad and look at enforcement out there too.

nikaiyo2

5,954 posts

224 months

Friday 13th September 2019
quotequote all
Cyberprog said:
First things first, you need to sue them and get a judgement against them. The address of your property would be the last known good address you have for them.

That means if they do re-surface sometime in the next 7 years, you can have a crack at them, and you could possibly get their address abroad and look at enforcement out there too.
Exactly, I don't get why landlords write off rent arrears debts.

Its a no brainer, spend £400 getting a judgement and know that if the person wants to rent again, get a phone on contract etc they HAVE to sort out the CCJ.

It also warns other landlords what the tenants are like.