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Question Title: No Rent Received.
| Question: 26 |
| Sirs, We have entered into an assured shorthold tenancy agreement which was made for one year. The tenant paid 5 months rental and one month deposit at commencement. Since the rent became due on 7th December, the tenant has paid no further rent. In fact, he has written himself and then via a solicitor saying that there are works required to be carried out. These have been attended and he then thinks of something else. Many of his complaints are unfounded and untrue. He has also carried out alterations to the central heating pipework, fitted a dish to the chimney, damaged the roof and a ceiling, and cut down several trees in the garden. We are considering taking out an action for rent arrears and then issuing a termination of the tenancy in May - 2 months before the end of the tenancy. Can you please advise before we take action ?
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| Answer: |
| This situation is not uncommon. Sadly there are both bad tenants and bad landlords and anyone renting property needs to take sensible and appropriate precautions, if only as a damage limitation exercise. These types of tenants realise that a landlord can only regain possession through the correct legal procedure and will often use the delays and complexities to great advantage. It is surprising at times how detailed is their legal knowledge and appreciation of tenants' rights. There are a number of issues that arise and I shall try and address each issue in turn: 1. Legally, a tenant has a right of 'set -off' for serious disrepair cases. Yet it is generally accepted that this power may only be exercised for genuine disrepair (Vs tenant damage for example) where the landlord has not exercised reasonable expedience to put things right. A tenant has no right to withhold rent for trivial matters of repair. In any event, fully withholding the rent could only be justified in cases where the property was uninhabitable. 2. You do not make it clear why such a large advance rental payment was taken up front. If you have any doubts as to whether a tenant if able to meet his financial obligations, then better to wait for a better tenant than to lose several months income. Alternatively, you can insist on having a guarantor if the tenant does not have secure employment or income. 3. You mention damage to the property by the tenant. Serious damage in this way would provide you with grounds to start possession proceedings. Similarly, non payment of rent also allows you to forfeit the tenancy. Other actions such as alterations will constitute breach of the tenancy agreement provided you have a comprehensive agreement. It would be a good idea to check that your agreement makes provision for issues such as removal of shrubs from the garden, a bar on attaching aerials and other objects to the exterior without permission etc. 4. Letters from solicitors. Unfortunately, the Legal Aid green form system is occasionally abused by individuals pursuing frivolous cases. Do not be threatened by a solicitors letter - it does not necessarily mean that the tenant has a bona fide case. 5. Legal Action. If there are rent arrears, then you have grounds to start an action for possession and rent arrears forthwith. You are required to issue a 'section 8 notice' before you can commence formal proceedings. All agents should keep one readily to hand for this eventuality. I see no benefit to taking an action for the rent arrears only and then waiting for the end of the tenancy for the tenant to vacate. You have no guarantee that the tenant will vacate at this point and you will then be faced with the need to issue possession proceedings and perhaps further rent arrears.
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Hyperlinks:
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Letting Handbook |
Chapter 11 |
letting-handbook-and-factsheets.html
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