Here we have a blog clinic question from Nicola who is a landlord:
I have a tenant who is now 2 months in arrears with their rent. They had promised to pay this on 27th July but no payment has been made and they now owe a further months payment. I am now writing to them asking for payment within 14 days otherwise I will issue them with notice to leave the property under Section 21.
My main concern or query is they originally signed a shorthold tenancy agreement on 09/10/10 for 6 months. They did ask for a new tenancy agreement after the 6 month period as they had now moved their boyfriend into the property and wanted him on the lease as well. So a new 6 month lease was drawn up on 01/05/11 and sent to them for signature. To date I have not received the signed lease back. I am now unsure as to whether I can just give 2 months notice under Section 21 or does it need to be dated at the end of the new lease even though I haven’t got a signed copy back from them.
I would really appreciate it for any advice as I know that they will get advice on this when I send the letter to them and want to make sure I’ve done it correctly.
NEVER send a tenancy agreement for signature and return without putting some limits on it. Otherwise, as here, you won’t know whether it has been signed or not.
I would suggest you write to them now, in a separate letter from your rent demands, saying that you have not recieved back the signed tenancy agreement and that as they have failed to pay rent, the offer of a new tenancy agreement and new fixed term is hereby withdrawn.
As they are in arrears of rent, you can serve a section 8 notice based on the mandatory rent arrears ground anyway, so do that now.
Then about week after you have sent the letter withdrawing the offer of a new tenancy (to give them time to respond) serve a section 21 notice.
Nicola, speaking as one who normally tackles landlords for harassment I have to say you arent being tough enough on this one.
Tessa is right about the Section 8 route but I would add, and I’m sure Tessa would agree, that you also have to weigh up the realities of recovering the money owed.
Section 21 will guarantee you possession, although it is longer, and you could take a seperate money claim out in the small claims court, unrelated to the possession application.
It might surprise you to know that housing associations, who are governed and regulated to a degree as socialy responsible landlords will serve notice often when a tenant is in 2 or 3 weeks arrears because they are mindful that it is irresponsible to let their tenants accrue debts. there is no reason why you should act differently here.
One further point to follow up Ben’s post.
Remember that if rent is due in advance (which it will be if you have any sort of decent written agreement) the Tenant is in arrears the day after rent was supposed to have been paid. I advise Landlords that the appropriate time to serve a s8 Notice is on day 2 of month 2 if rent has not been paid for Month 1 and has not been paid by day 2 of Month 2. That way, your s8 Notice will expire and you can start the Possession claim before the end of Month 2 and with a bit of luck you might even get a Court hearing date if you use the PCOL service before the end of Month 3.
Your approach must be to reduce the void period as far as possible, and not wait until the end of Month 2 if you have a defaulting tenant
Simon