Late payment legislation for landlord with private tenants

[lanby]

Hi,
I have a tenant with a rolling AST tenancy agreement who persistently
pays late and I want to give them a friendly shove towards prompter payment.
Can I quote the Late Payment of Commercial Debts (Interest) Act 1998 with the
amended European Directive 2000/35/EC ? or is just for transactions between
businesses?
As I understand it I could charge £40 plus 13.5% each month it's late and I'm sure
she'd soon pull her socks up!

[FUBAR]

IIRC you could threaten her with possession under a Section 21 notice, Ground 11 (this is discretionary by the Court and is for possession if he/she is persistently late with their rent but not actually in arrears) which allows for only 2 weeks notice to be served.

[lanby]

Thing is other than paying late every month she is a good long term tenant
and it is her cousin with whom she shares that is always the late payer so
in turn effects her.
I think I might drop the court and possession route in to conversation just
to keep her on her toes!

Edited by lanby on Thursday 5th July 19:15

[JustinP1]

lanby said:

Hi,
I have a tenant with a rolling AST tenancy agreement who persistently
pays late and I want to give them a friendly shove towards prompter payment.
Can I quote the Late Payment of Commercial Debts (Interest) Act 1998 with the
amended European Directive 2000/35/EC ? or is just for transactions between
businesses?
As I understand it I could charge £40 plus 13.5% each month it's late and I'm sure
she'd soon pull her socks up!

Its a good idea but unless things have changed the Act is solely for Commercial Debts.

However Contract Law which covers all contracts provides that if someone is in breach of contract then they are entitled to damages relative to the breach.

So, for example, if you have a business account where because you went into an overdraft because of the missed payment you got charged £30, you wrote them a letter, then you had to drive to collect the rent you would be perfectly entitled to ask (or sue) for the cost of all of these.

In most contracts this is outlined firstly so that it is more difficult to argue with it later and then also to act as a deterrent.

I would write a letter explaining that whilst you value their tenancy paying late is not acceptable and from now on you will charge a minimum flat rate of £30 or whatever you can justify for each missed payment.