Rent Arrears Recovery During Possession Order Process

Rent Arrears Recovery During Possession Order Process

6:40 AM, 19th October 2016, About 8 years ago 6

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I’d be grateful for ideas on the pros and cons of immediately pursuing a separate and simultaneous small claims application for recovery of rent arrears whilst an accelerated property possession order (not standard) is going through the court against a tenant who (on the advice of local council staff) has failed to move out of a property at the expiry of a section 21 notice. Rent Arrears Recovery During Possession Order Process

I am looking to recover the rent arrears from the tenant and/or her guarantor but I’d rather not wait until the possession hearing.

Any other useful experience around this subject matter would be appreciated.

Thanks in advance of your comments.

Andy


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Mandy Thomson

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9:43 AM, 19th October 2016, About 8 years ago

Hi Andy

The only advantage I can see is you know where the tenants are, or even if they aren't actually living in the property (e.g. because they're subletting) you have an address for service. However, you can always employ a tracing agent once they've moved out. They don't charge a lot and are often very successful.

Even with the accelerated process you have no way of knowing how long it will eventually take, and accelerated can easily be sidetracked unto standard, because a hearing is required if the tenant brings up a defence (however invalid) or some discrepancy with the claim comes to light. Therefore, you won't know how much is owed until the tenant has actually moved out and you've properly assessed any damage.

You are also likely to further antagonise tenants who are already facing eviction (which even the most hardened "professional tenant" doesn't look forward to), with a good chance that a rogue or unstable tenant will take out their frustration on your property, and/or bring up some spurious defence to delay proceedings, as I've suggested above.

SirAA

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10:17 AM, 19th October 2016, About 8 years ago

@Mandy
Many thanks for your comments which are largely in line with my thoughts since I posted my question. Also, and since the posting, the guarantor has agreed to pay the rent arrears which at present isn't large.

Have a splendid day.

Jill Lucas

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10:21 AM, 19th October 2016, About 8 years ago

Yes I am going thru this process at present. Section 21 accelerated possession - the tenant who is receiving housing benefit has stopped paying rent and knows every legal trick in the book. He is going for eviction so he will eventually be re-housed by the council. He claims to have no money although is running a merc and a land rover and we are sure he has funds squirrelled away. Sadly if this is the case with your tenant then it may cost you more chasing the money and all the aggro that goes with it. I have written off the loss as I know I can recoup it in the future. There is no point even threatening CCJ's and no references as they just dig there heels in further and prolong the agony. If they are on housing benefit then the council may pay rent direct to you. Be positive for the future and endeavour to bullet proof the selection of your next tenant and increase the rent accordingly! A tough and painful learning curve

SirAA

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10:49 AM, 19th October 2016, About 8 years ago

Hi Jill
Many thanks for your comments. Sorry to hear that you're going through a similar process although the circumstances of our tenants are very different. Comes with the territory, I'm afraid.
Funny enough it was the council's advice to our tenant after we served her with a S21 notice that has created the quagmire that we are in. The tenant is only a month in arrears at present which the guarantor is now paying.

Jill Lucas

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11:34 AM, 19th October 2016, About 8 years ago

Hi Andy
Thanks for your kind response! I am an experienced landlord with a healthy portfolio! and what with the extra tax burden and the law being weighted against landlords now more than ever do we all have to endeavour to get the best tenants for properties! Although I am in the real world of the 80/20 mix and that every now and then there will be a glitch!
Note your scenario is very different and good that landlords can communicate thru this medium which is beneficial!

Robert M

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14:36 PM, 22nd October 2016, About 8 years ago

Reply to the comment left by "Jill Lucas" at "19/10/2016 - 10:21":

Hi Jill

If your tenants have a Merc and a Land Rover, surely these are assets that you could seize to pay off the rent arrears and/or damage (via a CCJ and bailiffs of course)?

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