Tenant signed tenancy agreement 2 weeks ago and various promises to pay the deposit & first months rent haven’t materialised.
We previously agreed to meet at the property today for me to hand over keys but when I chased this morning he said he hasn’t got the funds to pay but will hopefully have them on Monday.
This is a grown man in his 50s who I took pity on when he fed me a sob story about his terrible divorce and how his chequered credit history was all down to the wife.
Obviously I was a mug but have now come to my senses and don’t want him as a tenant.
My understanding is the only way to end the tenancy is by mutual surrender. I don’t think he will agree though as he’s already said he’ll be homeless by Tuesday.
Does anyone have any advice or experience they can share?
My understanding is the Openrent advice is not to hand over keys till 1st month’s rent and deposit paid. Ask them.
As he hasn’t paid by move in day he is already in breach of the contract. Seems quite likely he won’t produce the funds on Monday either
I would contact Openrent but best will likely be to initiate the end of the tenancy by mutual surrender and if he doesn’t pay he would have to sue for breach of contract - he may well not have the means to do so. There may be some case law around such circumstances by now. @David122 may know as may OR. Best to persuade prospective tenant that he should sign surrender as he clearly can’t afford either the rent or to be sued by you for breach of contract.
I’ve been told govt was informed of this consequence of RRA and their view was that LLs should hand over keys and evict in due course when eg 3m rent arrears have happened. So basically (allowing for 4wk notice then application for possession then average 6m from grant of possession to eviction by bailiffs) you can assume a year of rent free living by the tenant, and you’ll never get that rent back.
I doubt many LLs would hand over keys in your circumstances, even if tenant miraculously finds the funds on Monday. I would want proof of receipt from OR or your bank before handing over keys.
I would say he is breach of the agreement . If me I would not go ahead in any manner . he will fall into arrears as sure as eggs are eggs. When someone gives me a sob story I tell them I cannot help them. Head not heart.
Yes - he has a verified salary of £75,000 and excellent current landlord reference but some CCJs on his credit history which he said were related to the divorce. I stupidly gave him the benefit of the doubt
He’s earning that much and has so little savings that he can’t put together 1m rent and security deposit? Def avoid and consider that you’ve dodged a bullet.