Claiming rent from tenants who have gone abroad

Here is a question  to the blog clinic from Brian (not his real name) who is a landlord:

Can UK based landlord sue an ex-tenant in the US?

The flat was rented in London and the landlord (and letting agency) are based in the UK.

Can either the landlord or his agents come after an ex-tenant (American) who has returned to and is presently living in the US?

The fact that someone has gone abroad does not prevent you from suing them in the English / Welsh courts for money they may owe you.  However there are two big problems to overcome:

1. Serving them with the papers and

2. Actually getting the money from them

So far as serving the papers are concerned, you have to be able to show that you have done this before the court will action your claim.  The court normally serves claims but will only do this for defendants in England and Wales.  You therefore need to do one of two things:

• Get leave of the court to serve them ‘out of the jurisdiction’ or
• Get leave to serve someone in England or Wales who you are able to show will forward the papers on to the tenant.  This is known as getting an order for substituted service

However the biggest problem is getting the money once you have obtained judgment.  In most cases there will be no assets in England and Wales to enforce against.

It is possible to enforce an English / Welsh judgement ‘out of the jurisdiction’ ie abroad, but it is not easy.  There are specialist companies that can do this for you but it is only really worth it for very large debts.

This is why, if you are renting to a tenant who is likely to disappear abroad, it is a good idea to take a substantial payment up front (which brings with it potential problems discussed elsewhere on this blog)  and/or a guarantee from someone based in England.

This is not always possible though, in which case you will just have to take your chance or rent to someone else.

Aeroplane picture