Rent issues in student rental agreement?

Rent issues in student rental agreement?

by Readers Question

Guest Author

9:00 AM, 15th May 2024, About 2 months ago 18

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Hi, hopefully Property118 readers can provide some advice.

My daughter is a tenant (of 4) in a student rental where one of the students has not paid any of their rent (now 7 months into a 12 month agreement). The tenant in question told the other flatmates and the agent that she had paid in advance (she signed the 12 month tenancy agreement as did the other flatmates).

The tenant never moved in even though she said she would be moving in a number of times. The tenant never paid anything in advance. The agent only notified the other tenants 6 months after the tenancy started that this tenant had not paid – we believe that the other tenants were not notified until 6 months due to 2 of the tenants paying the full year in advance, which the agent used to cover that fact that one tenant had not paid their rent.

The agent has basically said they have tried to get the tenant to pay but can’t and therefore the other tenants are liable as they are joint and severally liable. The agent has said that they “missed” the fact that the tenant had not paid in advance at the start of the lease because of the large payments (ie. the advance payments of the other tenants). The agent’s approach is there is effectively one tenant. The agent has not notified the landlord.

What are the obligations of the agent to notify the other tenants if one tenant has not, or is not, paying the rent? The agent was chasing the tenant for payment so they knew she had not paid.

Is the agent allowed to use rent in advance from one or more tenants to cover the rent not paid by one of the other tenants? The agent has said they can do this.

Where is the enforcement of the signature on the tenancy agreement made?

Thanks in advance for any advice,

A


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Comments

Graham Bowcock

9:16 AM, 16th May 2024, About 2 months ago

Tenants have a fundamental obligation to pay rent due under the tenancy agreement. Whilst I get how students act, they need to make sure all those who are due to pay do so.

Similarly I cannot see how delay to informing a guarantor is a defence against the guarantors obligations.

NewYorkie

10:22 AM, 16th May 2024, About 2 months ago

If there is rent outstanding at the end of the period, all tenants are jointly and severally responsible. If one doesn't pay, others must. Students have invariably worked things out between them over the years because they know they need accommodation the following year, and living together, they don't want to let their new friends down. Critically, university is about creating friendship networks which may last a lifetime. But if they aren't really 'friends', and are unlikely to ever meet socially after university, there is little to no impact on their future relationship if one student defaults.

However, the risk of a CCJ is to all and not just the one who hasn't paid, and must be avoided at all costs. It's the last thing a graduate entering the world of work and seeking rental accommodation needs. It's hard enough obtaining accommodation with a sparkling credit history; no chance with a CCJ!

The problems seem to have started with lockdown, where students simply went home because they couldn't attend classes and couldn't socialise. In their minds, they probably assumed they didn't need to pay rent if they weren't living there or, in their know it all way, dismissed it as unimportant.

Simon F

15:53 PM, 16th May 2024, About 2 months ago

Reply to the comment left by Paddy O'Dawes at 16/05/2024 - 09:00
This is very different position re guarantor. It's not a claim by a landlord, it's a claim by the co-tenants, and they are acting promptly on receipt of information about the situation.

Bag43

22:41 PM, 19th May 2024, About 2 months ago

Thanks so much for the comments. To try to answer some of the questions (and I have added a couple of questions):
- What I meant on "enforcement" was that the tenant who has not paid has signed the tenancy agreement - how can she be made to pay (without going down the CCJ route)?
- The tenancy agreement states joint and severally liable, however the agency required each tenant to either pay 12 months up front or have a guarantor. The tenant who did not pay said to the agent (and her fellow tenants) that she had paid in full and the agency let all the tenants move in. We now know that the she never paid and the agency did not prevent the tenants moving in and also did not contact the other tenants to say she hadn't paid until 6 months later. She also did not have a guarantor. We consider this negligent by the agency (and not just careless) - surely they also have a duty to the Landlord?
- How can the Landlord/Agent require full payment up front or a guarantor for each student/tenant and then ignore this when it suits them saying effectively "there is only 1 tenant!?
- There seems to be inconsistent views on whether one tenants advance payments can be used for another tenant not paying. Is there a regulation or a statement in an Act which governs this?
- Thanks for the tip on the student union. As a note the tenant that hasn't paid is not returning to university
- Thanks for the tip on MCOL. I will have a look at this
- Thanks for the tip on contacting the University Accommodation and about the code of conduct
thanks again.
Andrew E

Graham Bowcock

9:29 AM, 20th May 2024, About 2 months ago

Reply to the comment left by Bag43 at 19/05/2024 - 22:41
Hi Andrew

In respnse to youre queries:
1 - there is no way to enforce payment if the person won't pay apart from going to court.
2 - in general terms the matter will be governed by the contract (i.e. the tenancy). If there is ancillary paperwork then you would probably need to get a lawyer review that for you. Yes the agent has a duty to the landlord, but you're not the landlord.
3 - it looks like they have done. There should have perhaps been more communication between the tenants.
4 - if the tenants are jointly and severally liable then the agent/landlord can pursue any of the tenants and can apportion rent as they see fit. This is a well established principle.

Let's hope either the defaulting tenant or agent help you get out of this situation..

NewYorkie

10:15 AM, 20th May 2024, About 2 months ago

Reply to the comment left by Bag43 at 19/05/2024 - 22:41
I really hope you can resolve this, but I believe the money is owed to the landlord, not to the other tenants. Therefore, I don't see how they can use MCOL and obtain a CCJ.

Did all the tenant's know each other before university? Maybe they should use their social media to apply pressure. Again, did this person receive a maintenance grant?

Yvonne Francis

11:04 AM, 20th May 2024, About 2 months ago

Reply to the comment left by NewYorkie at 20/05/2024 - 10:15The normal procedure with this is that the willing tenants pay (which one way or another they will have to) so it's the tenants
who have paid who take the other tenants to court. So as I see it MCOL and CCJ can be used.
Whether or whether not they knew each other before the tenancy or whether they have a maintenance grant is irrelevant.

Simon F

13:00 PM, 20th May 2024, About 2 months ago

Reply to the comment left by Bag43 at 19/05/2024 - 22:41
On the original guarantor requirements point, the agent can argue all requirements are met if any of the other 3 guarantors guaranteed the whole agreement not the 1/4th portion.If you used the agents suggested guarantor wording you will all have done that. But check the precise wording of the agreements and everything you have in writing from the agent.

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