Rent repayment plan & insurance

Landlord Discussion
1

Dear all,

My tenants suffered financially due to COVID, they’ve not paid rent since Nov 2020. I’ve served them Section 8 Notice in Jan and they agreed to move out by end of this month.

To avoid going to the court, the tenant suggested a repayment plan. I wonder whether any of you have the experience:

  • is this repayment plan legal binding and can I sue them if they miss any agreed payments
  • will the current insurance cover the legal fees? I’m currently insured under DAS with legal expenses, or will the new company (if I switch this year) cover it when dispute happen?

In addition, my tenants are splitting up, and one of them moved out last year and refuse to pay any further rent or sign any repayment plan. The other tenant is only willing to pay half of the rent via repayment plan. DAS legal advisor said it is a joint-tenancy, and it is up to me whom to sue - both of one of them. What do you suggest?

Thanks all!

2

The usual advice is possession first and arrears second. Do you think that the tenant who is still there will leave? Is this tenancy still in the fixed term? If so then any deed of surrender would need to be signed by both tenants. If the tenancy is now periodic, you could perhaps suggest to the one who has left that they serve notice in accordance with the contract. That will guarantee that the tenancy ends for both of them.

You’ve received the correct advice about the joint tenancy. You can go after one or both for the full rent. Do you have an address for the one who moved out and are either or both of them working?

3

Thanks David, the fixed term ends on 31st March and I have written confirmation from the tenants that they will move out by 30th March.

So possession is certain. The tenant is still looking for a new place, I do not yet have the new address yet. I will ensure this is provided (but I’m not quite sure what I can do it they refuse to provide this)… any suggestions?

Thanks.

4

I wouldn’t say possession is certain because their written confirmation has no legal standing, however, its a good sign. If for some reason they don’t move out on 30th March, a periodic tenancy will arise on 1 April, so come back for more support.

If they don’t give you an address, then I suggest you give it a few months for them to resurface and then use a tenant find service to track them down and then use MCOL to reclaim the debt. This is often successful if the tenants are working.

5

Hi David,

you’re right - the tenants now said that he’d need to stay and get court paper for eviction so the council will help them in finding a council house…

I think the 6-month notice period enforced during COVID as ended, and now the contract runs into periodic agreement, I only need to give one month notice, right? Shall I serve both Section 8 and 21?

Thanks again!

6

The 6 month notice period is still a requirement I’m afraid. The exception is for tenants with 6 months arrears where you can serve a one month notice under s8g8, 10, 11.

7

Oh in April, they’d be in 6 full months arrears. That means I can give a month notice, that is a relief! Thanks!

8

Hi David, what’s an MCOL? I’m interested, I may need one !

9