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Re rent payment?

(88 Posts)
newbelandlord Sat 09-Mar-19 19:34:27

I really stretched myself to purchase a buy to let flat. Our son is at university and the idea is that when he’s ready to leave home he can buy the flat from me at the mortgage cost (we had to put 25% deposit down).

We engaged a letting agent to manage everything for a cost of 10% of the rent (the rent is £850 pcm).

The tenant has lived there since October last year. Since he moved in he has never paid the rent on time and usually in part payments over the month. Every time he makes a payment the agent automatically deducts the full charge of £85 and I have to chase them to claim it back.

When he doesn’t pay on the 1st of the month I get what looks like a standard email from the agent saying they have called and emailed him and are waiting for an answer.

I’m getting fed up with the tenant, I appreciate the rent is a lot of money but why take it on if he can’t afford it? We did agree to delay the payment payment date by a couple of weeks so it tied in with his salary payment. I’m also getting fed up with agent for apparently not giving a toss.

I’m tempted to go round the flat and explain to the tenant that we’re not landlords with a huge portfolio and we need the rent to pay the mortgage.

I would add though that the agent has carried out an inspection of the flat which came back as good.

Should we just suck up the late payments given that, so far, he has always paid in full? I’ve watched enough debt collector type programmes to appreciate it could be much, much worse.

Babysharkdododont Sat 09-Mar-19 19:37:27

I'd go and see him.he probably does think you've a portfolio and are filthy rich. Perhaps explain, and tell him if he can't buck his ideas up a bit you'll serve notice.
Then maybe swap letting agent next time, yours sounds a bit shit.

SavoyCabbage Sat 09-Mar-19 19:41:29

I agree with Baby.

ILoveMaxiBondi Sat 09-Mar-19 19:42:20

It continues to baffle me why anyone stretches themselves to have a buy to let! Being a landlord is for those who have oodles of spare money to cover when things inevitably go tits up. Why are people still not realising this is a very real risk of being a landlord?

Cherrysoup Sat 09-Mar-19 19:47:26

How long has this been going on? If he’s past or coming up to his 12 month ast, give him notice. I couldn’t cope with this. And get yourself a new agent or dump them and go diy.

HarrysOwl Sat 09-Mar-19 19:49:40

1. Ditch the agents, it's so easy to manage it yourself.
2. Speak with the tenant directly and explain that late rent is unacceptable and remind him of his contract.

If you don't have any luck, give him 2 months notice to quit and find yourself good tenants that will pay the rent in full, on time.

CloserIAm2Fine Sat 09-Mar-19 19:52:48

I do think it was foolish to stretch yourself to buy a buy to let property. There is always a risk of tenants trashing the place or not paying rent. Could you afford months of unpaid rent and a court case to get him out?

How long is his contract? Can you serve notice or not renew it?

I’ve rented privately for 12 years and even when I was in a total mess financially rent was always the first thing I paid and it was always on time. It made sense to change the due date in line with his pay day but him still not paying on time doesn’t bode well.

Daisymay2 Sat 09-Mar-19 19:54:31

I have rental property- all I can say is that at least you are getting all the rent - even if in parts. I have had a tenant who only paid 10% of her rent. However, your biggest issue is your letting agent. You need to speak to them about their admin. They also need to speak to him about the part payments, it is not acceptable.
I would be very wary about going to see him, you could be accused of harassment.

HollaHolla Sat 09-Mar-19 19:57:37

If you are this tight on the mortgage, you can’t afford to be a landlord. This boils my piss that people think they can play at this. This sort of half-assed approach also removes affordable properties from the market for first-time/lower income buyers.
If this is causing you a problem, sell it, and pay off your mortgage. Things will be easier.

sighrollseyes Sat 09-Mar-19 20:00:05

Serve him notice

Cranky17 Sat 09-Mar-19 20:00:29

Is there a six month break clause? I’d give notice if possible, unless contract says other wise I’d tell the agent they get their 10% each tone it dribbles in not in the first payment.

HarrysOwl Sat 09-Mar-19 20:03:22

OP just ignore the hate!

You're doing your best and trying to better your situation with a future plan for your son to buy from you, nothing wrong with that whatsoever. Your money, your choices.

ILoveMaxiBondi Sat 09-Mar-19 20:10:01

nothing wrong with that whatsoever.

Except she has a potentially £££ months long battle ahead of her simply to get possession of her property again. Money she doesn’t have. Utterly foolish to buy a house you cannot afford to pay for without relying on a stranger not to screw you over.

HeyPesto55 Sat 09-Mar-19 20:11:02

OP, you're overthinking this. The rent isn't being paid on time, according to contract. You don't need to explain your circumstances to your tenant.
You explain to your agent that the tenant is not abiding by the contract and you will serve notice.
Ignore the haters, you don't need to feel guilty and explain yourself but I suggest you get a bit of a backbone if this is a long term arrangement.
And get insurance.

HarrysOwl Sat 09-Mar-19 20:17:28

Except she has a potentially £££ months long battle ahead of her simply to get possession of her property again

Investment involves risk. I'm sure the OP is aware of that, which is why she probably fell into the trap of using an agent.

If the worst happens, the property can be sold. Easy. And it doesn't have to cost thousands or take months and months to gain possession if the right procedures are taken.

1Redacted1 Sat 09-Mar-19 20:21:52

The letting agent is doing a crap job and they need a rocket up their arses. I also think you need to give notice to your tenant. One of my previous tenants was like this and I gave him the benefit of the doubt to begin with, but he ended up failing to pay his last month’s rent and left the flat in a state.

GabsAlot Sat 09-Mar-19 20:22:50

dump the agent first ofall they take money to do bugger all-my dsis rents and her agent is next to useless

if you cant afford to wait ech month then give him notice and find someone else

mumwon Sat 09-Mar-19 20:23:43

if its I month & one day than they are 2 months overdue you maybe able to give notice. I suggest you join something like the Residential Landlord Association or its ilk - you can claim it against your annual tax expenses & they give you phone advice & online information about things like agents, tenants &changes in law - things like giving notice how to fill in various forms & processes (there are similar organisations but they are quite good)

FetchezLaVache Sat 09-Mar-19 20:26:39

Make sure it IS the tenant...

I private rent and the letting agents went bust last year, so my (fabulous) landlady has been managing the property directly since. It was very interesting getting together and comparing notes! She apparently never once in five years received my rent on time, even though I paid by DD, and the agents told her I paid late every month, cheeky cunts. Clearly a bit of robbing-Peter-to-pay-Paul going on.

thedisorganisedmum Sat 09-Mar-19 20:27:31

he probably does think you've a portfolio and are filthy rich
even if the OP was, so bloody what? The tenant has enjoyment of the flat, the landlord has fulfilled his side of the agreement, the tenant pays.

I'd get rid of the letting agent!

I would also be very tempted to get rid of the tenant who is taking liberties. Check beforehand to ensure you do everything by the book so it doesn't delay proceedings.

ContinuityError Sat 09-Mar-19 20:27:37

I also suspect your tenant will disappear without paying the final months rent - hope they don’t leave the place in a mess but be prepared. You need better managing agents.

LemonTT Sat 09-Mar-19 20:29:08

Speak to the agents not the tenant until and unless you end your contract with them. The tenant is taking the piss knowingly imo. He should have set up a direct debit and that should be aligned to his payday. Either he is continually in debt and no nice chat is going to resolve that or he is playing you. Either way he isn’t a good tenant.

He knows you can’t serve notice until the arrears are over a certain period, 8 weeks I think. But you agents will explain this and how you can legally serve notice. Let them get rid legally but be aware you could lose money. You’ll lose more if you are accused of harassing the tenant.

JaneEyre07 Sat 09-Mar-19 20:36:38

He should be paying the rent he committed to. On time, as per the contract he signed.

End of.

Serve him his notice and find a tenant who pays on time. And find a better agency who vet their tenants.... this won't be the first time he's done this.

Pinkbells Sat 09-Mar-19 20:37:38

It sounds like your letting agent is a bit of a waste of space. But on the other hand your tenant is paying, albeit sporadically and late. We have 3 BTL's which we let out to family members, and because they're family we are more flexible than we might otherwise be, but overall the payments get made in full and there are no arrears. I've heard some nightmare stories from friends who got not a penny from their tenants for months and then had to pay thousands to get them moved out. So I would get rid of the agent rather than the tenant!

NannyRed Sat 09-Mar-19 20:39:27

Get rid of your agent or get rid of the tenant.

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