Rent balance to the new tenancy, is it possible?

Hi
My current tenants has a balance of £4100 because of rent delays (due to Coronavirus). They want to stay here for another year. I have created a new tenancy and added a clause about the remaining balance of £4100 to be paid in the new tenancy.

Will it be fine? I mean my tenants will pay the remaining balance of £4100 in the new tenancy contract that I created, will OpenRent (website/System) handles this situation?

Thanks
Taj

Why on earth would you give a new tenancy agreement to a tenant who owes you thousands of pounds in rent? Why didn’t you just let the tenancy go periodic?

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totally agree ,you are hoping he will pay up? Good luck with that

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Thank you

I wanted to go periodic but they wanted a change in the break clause so I was exploring the options. I had the same fear of rent not getting paid. Hence, I spoke to them and got agreed to a rolling contract without changing the break clause.

Thank you

I got my tenants on rolling contract.
Feared about the remaining rent being vanished

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Do you have any legal advice you’re working with? It’s complicated due to covid but you should make sure you start taking steps to take legal action if needed.

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I’m also not clear from your post whether you issued a new contract that was periodic from the start. This does seem completely redundant as a periodic contract arises automatically by statute.

I am not very sure what I opted for when I created the contract 2 years ago. As a first time landlord, I was not very sure what all things to look for.
The tenancy contract is ending on 30th Nov (today). When I started looking at the Renewing option of the contract on OpenRent, it gave me two options (Rolling periodic contract and a New Tenancy). First, just before writing the first post here, I took the new tenancy option as I wanted to add a clause of remaining rent of £4100 (not signed yet by the tenants and me). Then I got some suggestions here in this post (thank you again), and I spoke to my tenants again that I am cancelling the new tenancy contract that I issued, and I will continue it with the rolling contract.

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No, I did not seek any legal advice yet. My tenants are trust worthy as per the experience I have with them for last two years. Hence, I assume that they will clear the balance rent. But if they dont then I will surely seek legal advice.

experience is a wonderful thing You will get better as time goes on

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Well there is no need to do anything about the contract if you want a periodic tenancy since that is what will arise automatically tomorrow. Unless its a Contractual Periodic Tenancy, you will need an EICR report for the property immediately following the introduction of that legislation earlier this year. It would also be a bad idea to draught any new clauses. Firstly because you cant easily amend a contract that is in force and secondly because the rent arrears will still be owed anyway and putting in such a clause will probably end up working against you.

Have your tenants agreed to you cancelling the new tenancy agreement youve issued? If not they could sue you for breach of contract.

I strongly suggest you join the NRLA if you havent already and do their foundation training before you lose a lot of money.

Yes, it is a rolling periodic tenancy which will happen by default from tomorrow. I got the EICR successfully done 2 weeks back. I opted to continue with rolling periodic tenancy and got it agreed with my tenants about it (they also preferred rolling periodic tenancy). Hence, it works with the same contract without any changes in it. Yes, my tenants agreed with not going ahead with new contract issued and they preferred the rolling periodic contract.
I will have a look at the NRLA that you suggested.

Thanks for all your suggestion and advices.

Yes, hopefully, I will get better with time and experience :slight_smile:

Good man! Its a steep learning curve, but it will keep you safe and increase you £

Hi Tajinder,

We are sorry to hear about this situation. We have prepared some guidance on the best way to handle this kind of situation here:

If the above doesn’t help with your particular circumstance, as mentioned in the article we partner with Landlord Action, who are extremely experienced and specialise in helping landlords recover rent arrears.

Please do get in touch at https://www.openrent.co.uk/faq#i-have-more-questions if you require any further information.

Kind regards,
Matthew C

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totally agree with David 122

however,legislation (by tories no less!) being made up on hoof

Look into whether a years arrears now constitute a case for eviction

If so issue eviction let professionals (bailiff) handle

Pass on copies to whichever LA supports them

If law is on your side LA will either have to clear arrears OR find another mug to house them

Oh…and… stop being so gullible please

Its embarrassing!

Doctor David Noble

Hopefully, I dont have to take the legal route because day before yesterday my tenants already paid £3000 and will soon clear the remaining.

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looks like your problem is ,partially,resolved

I would;
Insist upon total balance-perhps go periodic until it is

Periodic means little right now legally but this vaccine will soon have tories more on LL side

Dont rely on conditions you choose to apply to tenancy -unless you have received legal counsel…and good luck!

Tenants are lucky to have a LL who allows such arrears and still wants to trade!

yours

Doctor David Noble

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I know this is a bit old but:

Considering that evicting a tenant isn’t an easy process and a nightmare tenant can cost a landlord considerably more than £4100, I don’t think this is appropriate advice for the situation.

The tenant just paid of nearly 3/4 of the arrears in one chunk. Maintaining a respectful and overall positive relationship is in the landlord’s favor.

Going too harsh right after the tenant made such a large payment towards the arrears is likely to backfire and could cost the landlord much more in stress and even financial issues than the remaining £1100.

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