I say ex-tenant owes me £5,000 unpaid rent, they claim they don’t?

I say ex-tenant owes me £5,000 unpaid rent, they claim they don’t?

10:34 AM, 22nd July 2024, About 5 months ago 11

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Hi, This has been an ongoing situation. I’m a portfolio landlord and use property management companies to manage my buildings. During May 2020, I changed property manager and this is when I started having issues with a tenant not paying rent.

Because this was COVID we didn’t get it to court until December 2021 and due to an administrative error it was thrown out and I was unable to gain access to the property until February 2022.

Out of the blue, I got a council tax bill for the property for the period of May 2020 – April 2021, as well as a bill for May 2021 to April 2022. The same time the tenant has not been paying rent they have not been paying council tax.

Unfortunately, according to the council, this person is claiming they didn’t live there and moved out in May 2020. I’m not sure what they did to make the council believe them but the council let them off the hook and put me on it, so I had to pay 2 years of council tax totalling nearly £3,000.

I have not had contact with the tenant directly ever, and I had no issues until 2020 when they became completely uncontactable. I was willing to let the whole thing go because I finally got access to my property back and it was COVID and I wanted to just move on.

But now the tenant is making me pay their personal bills, I want to pursue them for the £10k+ arrears from May 2020 to February 2022. I have already instructed a tracing agent, I am just nervous this could cost more in legal fees than I may recover as they have already hoodwinked the council, I am concerned they could hoodwink the courts too.

How should I proceed?

Thank you,

Michelle


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Martin Hicks

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10:46 AM, 22nd July 2024, About 5 months ago

You say that you changed the property agent in May 2020. Could it be that the tenants moved out, coincidentally, at that time and informed the previous agent? Have you confirmed that the original tenants were still living there after May 2020. Maybe the property was empty or somebody else moved in?

AccidentalLandlord2024

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10:59 AM, 22nd July 2024, About 5 months ago

1. You have never met the tenant - so you need to ascertain he/she did live there. Anything the agent told you will need to be verified.

2. It is also possible that the council find it easier to chase the landlord who has the money to pay, so I guess you will need to prove your case and there was an article on this website last week where the Landlord fought and won.

Southern Boyuk

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11:07 AM, 22nd July 2024, About 5 months ago

Why are you doing this, when you’re paying managing agents to manage your property. What have they been doing?

Ask them what they’ve been doing to chase the rent, have they done inspections? Have they done follow-ups so it’s pretty competent to me.

When agents take over another agents properties, they normally do their due diligence, due visits et cetera all of this should’ve been done

Cider Drinker

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11:35 AM, 22nd July 2024, About 5 months ago

You must know if you received rent. You would have needed to know when filing your tax returns.

If you didn’t receive rent, did the agents steal it?

You ought to know if you had a tenancy agreement for the disputed periods. If you did, it doesn’t matter if the tenant lived there or not, the bill is theirs.

Contango

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11:38 AM, 22nd July 2024, About 5 months ago

Reply to the comment left by Cider Drinker at 22/07/2024 - 11:35
often tenants hold over under agreements which have expired contractually so its not so clear without other evidence

Cider Drinker

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12:20 PM, 22nd July 2024, About 5 months ago

Reply to the comment left by Contango at 22/07/2024 - 11:38
ASTs don’t expire.

Fraser Hopewell

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18:03 PM, 22nd July 2024, About 5 months ago

HI reading what you've written I would question

when did the AST finish. did the AST have a clause in it that it would roll to periodic tenancy automatically or did it have a clause that it would automatically finish or did it have a Clause saying the Tennant has to give notice or did the tenant give notice .

IE in legal terms was the tenant still liable for the rent ? withiout that basic information

How is the Tennant making you pay their personal bills ! ?

Lina Borzenkova

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9:43 AM, 23rd July 2024, About 5 months ago

I would recomended mediation or arbitration can be less costly and faster than court proceedings. Propose ADR to the tenant if they can be contacted. This may also demonstrate to the court that you attempted to resolve the issue amicably.
If you wish to go to the court you have two options: Small Claims Court: If the amount owed falls within the small claims limit (varies by jurisdiction, typically up to £10,000 in the UK), this can be a cost-effective route.
County Court: For amounts exceeding the small claims limit, you may need to proceed through the county court. Your solicitor can help you file a claim and represent you in court.
If you obtain a judgment in your favor, you will need to enforce it.
You can also authorizes bailiffs to seize the tenant's assets. For example, attachment of Earnings Order: Deductions made directly from the tenant's salary; Charging Order: Placing a charge on the tenant’s property, if they own one.
The most important things is consider Costs vs. Benefits. Continuously assess the costs of legal action against the likelihood of recovering the debt. If the costs start outweighing the potential benefits, you might consider writing off the debt to avoid further expenses.
And just advise for the future to prevent future issues:
Enhance your tenant vetting process to include thorough background checks and references. Consider rent guarantee insurance to protect against future non-payment of rent. Ensure your property management company has robust procedures for dealing with non-payment of rent and tenant issues.
If you wish to proceed you can give me a call 07927288895, we have 20 minutes for initial consultation fot the matter.

DPT

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11:48 AM, 23rd July 2024, About 5 months ago

Whether its worth it depends on whether the ex-tenant has any money and a reasonably well-paid job, (not self employed).

Fraser Hopewell

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12:25 PM, 23rd July 2024, About 5 months ago

Reply to the comment left by Cider Drinker at 22/07/2024 - 12:20
Yes The “standard issue” ASTs revert to a periodic if no party gives notice. However I have had one where there was no automatic roll onto periodic and it came to an end at the end of the term and I have also had another where the tennant had their notice to leave inserted within the AST so it’s always worth checking what’s being used by your agent if you’re not issuing your own

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