Need an advice. My new tenant who fell into arrears straight from the 1st month of the AST and now fails to reply to any form of the communication. Obviously I read all of the guidance about sending formal notice letters and serving eviction notes etc. However, now I’m reading a clause from our AST (standard template used by OpenRent) which says:
Early termination by the Landlord 12.1. If and whenever during the Term: the Rent or any part of it is in arrears for 14 days after it has become due (whether legally demanded or[…]
the Landlord may re-enter upon the Premises or any part in the name of the whole resuming possession on the furniture and effects and immediately thereon the tenancy shall terminate, but without prejudice to the other rights and remedies of the Landlord. The Landlord’s rights under this clause are subject to the restrictions of the Protection From Eviction Act 1977 and the Housing Act 1988 and the Landlord will not whilst the Tenant is residing in the Premises physically retake possession without first obtaining a Court Order.not), or[…]
Does that mean that apart from notices about rent overdue I can also terminate our contract? It’s for 12 months with 4 months breaking clause and 2 months notice, but my interpretation would be that I can just terminate the contract? If that’s the case would 2 months notice period be applicable?
Also, this person has a guarantor, and I have their name and contact email, but not actual address? I know where they work too. Do you foresee this a potential problem? The tenant is now ghosting me, so I suspect I won’t be able to request guarantor home address despite this being my right as per AST.
Any suggestions would be welcome, as well as recommendations for legal companies.
Thank Colin, sadly not as I got persuaded by the tenant she (the guarantor) is unkeen to go through full referencing. Bad me, with my previous tenant did the same, but didn’t even have to think about that at all throughout the whole of the tenancy. Didn’t push for it as rent insurance was not available at that time due to covid anyways. Lesson learned.
not wanting to go thru reference ALARM bells , Do not fall for sob stories . You are not a charity you are in business .Only trust yourself, Tenants and landlords tell lies to get what they want. As you said lesson learnt. ALL landlords take notice
You are only one month into tenancy.
You cannot serve eviction notice.
I recall you said this was a student.
Write them a polite email to discuss finances.
They are not the most mature of people.
People in debt behave like ostriches and really it would be better if they communicate.
It’s the not knowing that is the worst.
Firstly are they still a tenant or have they abandoned the property?
If so great cut your losses and move on.
Serve notice to do a house inspection in 24 hours and see if they are there or not.
Are they awaiting a loan ?
Loans come in September.
I am having to wait for some of our students.
Firstly what is your rental period?
We are still under COVID legislation and it’s a four month notice period COVID-19 and renting: guidance for landlords, tenants and local authorities - GOV.UK
Don’t serve any notices just yet.
The law changes soon so we may go back to the shorter notice periods so you may want to wait.
From August 1st we are back to two months
You could enact your break clause but if they don’t leave you have to evict.
Ref guarantor
You are unlikely to get information now.
Your checks should be done before tenancy
It is now a hostile situation and it’s not in their interest to give you information.
You can try but I think you will not be successful.
Legal companies:-
Anthony Gold
JMW
There are specialist companies who deal with eviction proceedings in a fixed fee.
Google them
Do not continually chase tenant as it will be looked upon as harassment.
Letters for rent should be posted or emailed ( method of service is in contract ) is at day 1 day 7 day 14, month 1, month2.
Get template free off internet .
On a two month arrear you can serve s8 on the second day of the second month of rental arrear.
The termination clause you mention is intended for non assured tenancies, or if an assured tenancy becomes non-assured. It cannot be used whilst the tenant has a valid AST.
I think that from August 1st, you can serve a s8 notice with two months notice if the arrears are two months or more. Check with the latest Gov’t guidance.
Thank you all for further suggestions. I wasn’t aware that this clause would refer to non-assured tenancies. I wonder where is it implied (forgive me if this is a very naive question and it’s dead obvious for everyone else).
My tenant re-surfaced and now claims further circumstances and asks for change in pay date, but at the same time is willing to look into options to surrender tenancy. Whilst I’m still trying to recuperate the rent, I have issued first (day 7) notice regarding rent overdue. Indeed luckily law changes from 1st Aug and should I need to evict the section 8 notice would have to go after the 1st.
To go back to one of my original questions, will I be able to communicate with the guarantor via email that was provided and used to sign AST (I have both private and work email), also to send D14 notice regarding rent not being paid or is it now completely useless contact and I won’t be able to chase guarantor for overdue payments should I need to?
This tenancy is a headache and your guarantor is not worth much without a reference check
My advice get a deed of surrender. She has put it on the table and you agree cut your losses and move on.
Offer her a soft option. Do the deed as a formal document from a solicitor with a wet signature.
As A_A suggested, if the tenant is willing to surrender the lease that is your best option. Make sure you talk to a solicitor and spend that money to make it properly secure. Know that you can’t pursue rent arrears from anyone if that is agreed.
Some people even pay tenants to get out but if you do then make sure money is paid after you’ve changed locks and it’s official.
And take this as a learning experience!
Also, how do you know that the guarantor is indeed a real person who has signed this? No ID? Did you get the e-mail and name from the tenant and took it at face value? Big no-no.
Thanks again for prompt replies. Yes, I know my naiveness stroke me shortly after agreeing to not pursue comprehensive references for them.
As for signing the deed to surrender. Should we agree to sign one (thanks for suggesting via official route with solicitor), would the arrears still not be payable till she moves out? Obviously her deposit is still in and secured? Would she not be liable to pay for the time she lived there?
A deed of surrender is a cut your losses document without any recourse to either party
Forget the losses this is about getting your property back
You are looking at a 12- 18 month backlog in courts because of the pandemic
You need to get your property back and rent it to someone who is paying rent
A deed of surrender is the fastest route
Your tenant has given you the option. Take it and run
No, if they agree that she moves out/surrenders the lease the agreement also includes s/he writes off the rent. Often there is a payment from the landlord too to incentivise.
I’m told by trusted sources that it is possible to include terms for a payment from the tenant in a deed of surrender, but I haven’t been able to find an example with the appropriate wording. Certainly the default assumption of a deed of surrender is that it ends all liabilities on both sides from that moment and neither party owes anything to the other.
You can receive payment. I have charged a months rent and asked for a deposit but that was because it was my advantage ( the tenant wanted out and I was not dealing with arrears).
Terms should be met before the deed is signed; after the deed is signed the contract terms are all void.
This situation is different. This is about getting a property back quickly ( where a tenant is in arrears) without the hassle of eviction. You need to make it saleable for the tenant.
Of course there’s always a possibility but which tenant would do so? Only one with any money to protect, which his tenant doesn’t and tenants in arrears generally don’t.
Of course, they know exactly what they are signing. They are also aware of how much it costs and how long it takes to get them out. Most tenants in arrears are low income with no disposable income.
So, if I want them out quickly through the courts it will cost me 6 months+ rent (normally, now a lot longer wait) and legal fees. If I subsequently want my money back I have to go to court and sue again and possibly get no money.
Or the other option is to sue for possession and money at the same time but no fastxtrack option, i.e. over a year’s list rent.
That’s why you pay them to get out if they have no money. Mitigating losses.