• Home
  • About
  • Clinic
  • Freebies
  • Training
    • Workshops and Online Training
    • Landlord Law Conference
  • Eco Landlords
  • Landlord Law

The Landlord Law Blog

From landlord and tenant lawyer Tessa Shepperson

  • Home
  • Posts
  • News & comment
  • Cases
  • Tenants
    • Penalties for breaching tenancy rules
    • 15 Places for tenant help
  • Clinic
  • Podcasts
    • Interview
    • Surgery
  • Series
    • Analysis
    • should law and justice be free
    • HMO Basics
    • Tenancy Agreements 33 days
    • Airbnb
    • Grounds for Eviction
    • The Deregulation Act Explained
    • Tips

Can my tenant owe rent if they did not sign the tenancy agreement?

August 8, 2019 by Tessa Shepperson

Here is a question to the blog clinic from David who is a landlord:

Hi, we have a tenant who owes £5,000 in rent arrears and we have just discovered the agreement was not signed by the tenant. (This done through friends of a family so done on trust).

Can monies owed be collected if the agreement hasn’t been signed?

Answer

They will probably owe the money.  Whether you can actually collect though it is another matter.

It is possible for a legally binding tenancy to be created even if a tenancy agreement was never signed.  This is under section 54(2) of the Law of Property Act which provides that, in most cases, so long as the tenant is in occupation and paying rent – a tenancy is created.  Whether or not a proper tenancy agreement has been signed.

If they have a tenancy they will be liable for the rent.

Assuming that is you can prove the rent that was agreed.  So if the monthly rent was, say, £500 and the tenant paid this for several months and then stopped – you should be all right.  You will be able to prove that the tenant’s rent was £500 per month – because he paid it (until he stopped).

However, if the tenant moved in and failed to pay anything – it may be more difficult to prove what the agreed rent was.  However, in this case, you may be able to claim that the tenant does not have a tenancy at all – as payment of rent is an essential element of a tenancy. So as they did not sign a document and have never paid rent, it could be argued that they just have a license to occupy, which you can end and then evict them through the courts.

Although it sounds harsh, when tenants stop paying, eviction is normally a better option than chasing the tenants through the courts for the money.

  • It will focus their minds – as they are at risk of losing their home, and
  • It is generally very difficult if not impossible to get payment from someone who is unable or unwilling to pay (even if you get a County Court Judgement) – so if you allow them to stay you are in effect providing them with free accommodation.

As you do not have a written agreement and as this tenancy was set up presumably by someone who is not a lettings expert, I would recommend that you consult solicitors about this.

Renting property is heavily regulated nowadays and if your friend of the family failed to get the tenancy agreement signed, it is probable that they also failed to deal with any of the other legal requirements.  Such as service of a gas safety certificate and Energy Performance Certificate.  Which would mean (for example) that you cannot use section 21 to evict the tenants.

If you go to a specialist firm such as Landlord Action they will be able to advise on the best course of action to take.

Print Friendly

Filed Under: Readers problems

IMPORTANT: Please check the date of the post above - remember, if it is an old post, the law may have changed since it was written.

You should always get independent legal advice before taking any action.

Notes on comments:

For personal landlord and tenant related problems, please use our >> Blog Clinic.
Note that we do not publish all comments, please >> click here to read our terms of use and comments policy. Comments close after three months.

Keep up with the news on Landlord Law blog!

To get posts sent direct to your email in box click here

About Tessa Shepperson

Tessa is a specialist landlord & tenant lawyer and the creator of this site! She is a director of Landlord Law Services which now hosts Landlord Law and other services for landlords and property professionals.

« Do you rent out a large rural property? Are you SURE it’s not being used by a criminal gang?
Tessa Shepperson Newsround #110 »

Its good to talk


>> See all blog clinic posts posts

>> Click here for the Blog Clinic form
>> Click here for the Blog Clinic Fast Track

The Clinic in a Nutshell

- You send us your problem using our special form
- We post it as a normal blog post, do our answer and ask readers to comment
- You agree that you won't hold people responsible (or legally liable) if they give a wrong answer
- You understand that you may not get any readers answers - it is up to readers whether they comment or not
- We won't publish everything - whether or not we publish someone's question is entirely up to us
- However if you use the Fast Track service you will get your question answered within 14 days or your money back

We may be able to help with problems with:

- Tenancy agreements
- Tenancy deposits
- HMOs
- Disrepair issues
- Eviction
- Harassment
(This is not an exhaustive list!)

However we won’t publish questions on:

- Long leases
- Commercial tenancies
- Agricultural tenancies
- Owner occupier problems
- Rented properties outside England & Wales UK
- Neighbour disputes (unless perhaps they are landlord and tenant related)
- Social housing problems (eg where the local authority or a housing association is your landlord)

So please do not ask question on these topics.

Recent Blog Clinic Posts

What can landlords do when tenants leave without paying the final rent?

What can landlords do when tenants leave without paying the final rent?

What is the best option for landlords whose tenants aren’t paying rent but who can’t afford solicitors?

What is the best option for landlords whose tenants aren’t paying rent but who can’t afford solicitors?

Letting agents using their keys to enter to show buyers round while the tenant is in bed

Letting agents using their keys to enter to show buyers round while the tenant is in bed

More Posts from this Category

Disclaimer

The purpose of this blog is to provide information, comment and discussion.

Although Tessa, or guest bloggers, may from time to time, give helpful comments to readers' questions, these can only be based on the information given by the reader in his or her comment, which may not contain all material facts.

Any comments or suggestions provided by Tessa or any guest bloggers should not, therefore be relied upon as a substitute for legal advice from a qualified lawyer regarding any actual legal issue or dispute.

Nothing on this website should be construed as legal advice or perceived as creating a lawyer-client relationship (apart from the Fast Track block clinic service - so far as the questioners only are concerned).

Please also note that any opinion expressed by a guest blogger is his or hers alone, and does not necessarily reflect the views of Tessa Shepperson, or the other writers on this blog.

Cookies

You can find out more about our use of 'cookies' on this website here.

Associated sites

Landlord Law Services
Tenant Law
Eco Landlords
Your Law Store

Legal

Landlord Law Blog is © 2006 – 2019 Tessa Shepperson.

Note that Tessa is an introducer for Alan Boswell Insurance Brokers and will get a commission from sales made via links on this website.

© 2006–2019 Tessa Shepperson | Rainmaker Platform | Contact Page | Log in