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Question Title: Fake company let
| Question: 411 |
| A couple of months ago I let one of the properties that I own to a gentleman who said that he was a director of a Company that I knew had recently moved to a Business Park nearby. It was agreed that the rent would be paid by a standing order from the company's account. He signed the tenancy agreement on behalf of the company and took occupation. The first month's rent and the deposit were paid in cash as he said that they hadn't, as yet, finalised their local banking arrangements. This would seem to still be a problem as last month's rent was also paid in cash. This month's rent is now overdue and I can't get hold of the tenant. What should I do?
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| Answer: |
| Initially you should contact the company to seek confirmation as to whether he is or was a director or an employee of the company with authority to enter into a tenancy agreement. If he was then the obligations as to the rent are on the company until the agreement is terminated by the company. If, however, he had no power to bind the company to the terms of the tenancy it may be that, unintentionally, an assured shorthold tenancy may have been created by the acceptance of rent directly from the occupier. Unless there is a breach of the tenancy agreement possession cannot normally be sought within the first six months. When there is two month's rent arrears a s8 notice (Ground 8) can be served or you can use the same notice on Ground 17 where a tenancy has been granted as a result of a misrepresentation. However unlike Ground 8 this Ground is discretionary.
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References:
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Pages:
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Hyperlinks:
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Letting Factsheet No 8 |
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factsheet-8
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Letting Factsheet No 20 |
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factsheet-20
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For more information, discuss on the Forum
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