Tenants refusing to pay rent

[FedUpp]

I have a couple living in a flat I rent out and they have been there for 18 months. The rent charged is below market value and had never been increased. Every time they have needed a plumber etc they have been there straight away.

The property is managed through a leggings agency and he tenants are leaving in May. They are now two months in arrears and keep making up reasons why they can't pay their rent but I believe it's because they know they cannot be evicted before the end of their fixed term and really they are playing the system and have no intent on paying anything.

All contact is through the property manager but I found the tenants in Instagram and ironically they are both "flash" with fancy cars and she is posing with designer handbags full of shoes last week.

WIBU to send her a direct message on Instagram asking her to call me to discuss the situation? I want to do it this way rather than a different way because then she will know I have seen evidence of her high spending and lifestyle whilst not paying her bills. All I intend to say is to introduce myself and ask her to get back to me to discuss their rental arrears.

If you use a lettings agency they should have guarantors?

A1 you usually only get guarantors if you fail the affordability checks or your credit rating is abysmal ie you have CCJs or are bankrupt

OP, I don't think you should contact them on Instagram, you should only talk to them through official and professional avenues

If you use a lettings agency they should have guarantors?

Not if they earn 3x the rent between them.

Op don't message them on instagram, what do you think that will achieve? It won't shame them into paying and it could go against you in court. For goodness sake.
Start legal proceedings and do it properly.
Bit concerned that you assumed you could deduct unpaid rent from the deposit automatically- are you an amateur landlord? You need to know your rights and obligations. Landlordzone is good.

Sorry, that obviously isn't standard practice. My DH has a property business which includes a large lettings and management section. Everyone has to have a guarantor or double deposit, whether you are renting a penthouse or two up two down.

As many have said, serve notice on them asap. Assuming it's an Assured Shorthold Tenancy? Think it's a section 21 notice for breach of contract but agent should advise you and make sure it is served properly. This will serve to get them out if they don't leave voluntarily but you will then have to take them to small claims court for the rent.

We pursued a tenant through the courts and in the end they paid off what they owed over 24 months, but we made that arrangement with the privately once they realised we weren't going to let it go. Good luck.

Wow. How unnecessary. I would certainly avoid your husband's agency for that reason!

Have you (or letting agents) served notice of termination of assured shorthold tenancy? Don't assume they automatically have to leave at the end of the term as they can legally "hold over" until you serve notice. Notice is min 2 months so serve it now so it terminates in May.
You can wait until then and serve eviction proceedings for possession only which will be fast tracked. Quicker, easier and cheaper cost-wise but doesn't include a claim for unpaid rent.
However you can serve full proceedings now for possession and unpaid rent. It's more detailed and you have to provide proof of the breaches but it's indirectly possible do yourself without a sol. You may never see the money but they will get lumbered with a ccj. If you have bank details or employer details you can apply to have the funds recovered by enforcement(though that is another procedure and court fee with no guarantee of any money being available).
Good luck.

You can't take anything from their deposit

Yes, you can

Ha ha! Sorry Gallavich I didn't realise it was controversial, I thought it was the norm. Although I have worked at times doing admin in the office, it is not my forte!
My own job is not office based.
His business is very successful, so some people must like it .

Surely the Lettings Agency is responsible for collecting the rent otherwise what use are they? Start eviction proceedings now for non payment.

Of course it's controversial! I'm a professional in my mid 30s with 17 years of renting behind me, 13 years with the same employer, evidence that I can pay rent and always do on time, but I am expected to ask my elderly parents or siblings to hand over their financial details and sign a financial responsibility contract for my rent if I don't pay? And if I don't have relatives or don't want to do that I have to find £1000s to sit in a scheme for potentially years until I move out?
There is no reason to put renters through that. There are far more reliable ways to ensure you are selecting reliable tenants.

Ah sorry all, i am misinformed, i must read up on this (am a LL, thankfully have never had to make any deductions from a deposit for rent or otherwise, hence my ignorance of the rules).

Second and third the advice about being easy breezy and keeping them on side until you get them out.

Perhaps the deposit can be used for rent AFTER the tenant has left.

If you do the small claims process on line they will get the papers in about 7 working days. This will be before they move to a new address where you might not be able to find them.
I suggest you do it of the least fee, about £25, as that will start the process.
MCOL is easy, only taking 10mins or so.
If you employ a solicitor it will vastly increase your costs and will not increase your chances of getting your rent.
In my experience you are unlikely to get your money but you will have the satisfaction of giving them a CCJ.
This is one of the joys of being a landlord.
Good luck

OK, Shelter says you can deduct unpaid rent from the deposit and take them to court for the rest:

england.shelter.org.uk/housing_advice/tenancy_deposits/tenancy_deposit_deductions_your_landlord_can_make

I can't find anything which says you can deduct unpaid rent from the deposit before the end of the tenancy (I suspect you can't) but I think it would be a bad idea to do this anyway as it would leave you with nothing if they trash the place.

You have absolutely no guarantee they're leaving in May! If you don't take action, and they're getting away without paying rent, they'll likely stay.

Immediately issue a section 8 notice citing grounds 8 and 10 (www.landlordzone.co.uk/content/section-8-procedure), and also issue a section 21 as a backup (obviously served to expire after the end of the fixed term).

What Strigoi says makes a lot of sense.

It is very easy to prove to a court that rent has, or has not, been paid.

Not so easy to prove damage and quantify loss if you go to court because of damage / trashing.

Hence better to use court route for rent arrears and deposit for intended purpose (damage)

I rent my property long term to someone I know and trust. But if they ever moved out, I think I would prefer to find tennants myself, rather than trust an agency. And I would be looking for people for whom a CCJ, or an attachment of earnings would be a big problem. Otherwise I would be asking for a really big deposit and guarantors.

Do you know where they are intending to move to? Has the lettings Agency been asked for reference etc?

As others have said. Get a possession order on rent arrears grounds and a judgement for the arrears then if they don't move out you danger a bailiff in quickly and you can apply to the deposit people to deduct the arrears from the deposit and then enforce the rest of the money judgement against them. If you know where they work you can get an attachment of earnings etc. And the ccj will be a problem fot them until they clear the debt.

I would also ask them by email copied to the agency if there is a problem and saying you will need all arrears by a week today. If they don't pay by next Friday I would do as purple says - small claim on line for the rent owed - you dont' need al awyer. That is likely to prompt them into paying otherwise you can do get judgement and send a bailiff - do they own any valuable stuff?

Can get the bailiff in quickly - not danger!

Many agents issue a Section 21 Notice at the beginning of the tenancy. Did your agent do this?

If not, serve it right away to terminate the tenancy at the end of the fixed-term. That way, if they choose not to leave you can apply to court for possession immediately it expires. NOTE: the deposit must be protected in one of the official schemes or your precious S21 will be invalid.

If they owe two months rent serve a Section 8 Notice. NOTE: owed is not the same as arrears. Two months rent is owed on the first day after the previous month's rent fell due and was unpaid.

You need to ensure you get them out n the day their AST expires before they owe you thousands and thousands.

Meanwhile, what did the references turn up? Do you know where they work? Hang fire on revealing you've found them on instagram, it could prove useful if you need to find out where they've moved to so you can serve them with court documents for any remaining arrears if necessary.

What's your agent doing?? You're paying them to manage it for you. They should be taking some action!

You are not allowed to serve a S21 at the start of the tenancy now, quite rightly in my opinion.

You need to serve a Sect 21 ASAP. A Section 8 can appear to make more sense to serve as it relates to arrears,however, if they intended to stay after the end of the fixed term and continue not paying you then a Section 8 can make the eviction process long and costly.
A Section 21 is your right to recover your property without reason and is best practice to serve. Cut your losses asap.
Also, a Section 8 eviction relating to arrears can be resolved by the tenant paying a very small amount only to intentionally fall into arrears again. Some tenants know how to work the system.
Most importantly and not mentioned by any PP is that you need to look at your terms and conditions of business between you and your agent. Specifically, what type of reference checks they said they would do. Most agents use a third party and the levels vary-some offer a "Rent Guarantee" policy where the referencing company pay you the rent until the tenants vacate. They handle the eviction side and it is normally swiftly resolved.