The first months of the year can be difficult for those who struggle to pay their rent. In this month’s column, we offer advice to landlords and tenants who are trying to recover rent arrears…
My advice for tenants
It might sound obvious, but if you can’t pay your rent, don’t bury your head in the sand – avoiding your landlord will not improve things.
There are a number of ways to address the situation, but my best advice would be to open communication with your landlord or letting agent to see if a payment arrangement can be agreed.
Sometimes landlords will be prepared to accept weekly instalments to cover the outstanding amount, or they may be willing to wait until the following rent day, providing you can assure them payment for both months will be made.
If solicitors are instructed to collect your rent, additional charges will be applied for all work undertaken. This clearly won’t help your financial situation, so it is best to deal with the issue before it gets this far.
Can someone pay on my behalf?
Yes! If you are unable to come to an agreement with your landlord about repayment, it would be wise to ask a friend or family member to pay on your behalf.
It is becoming increasingly common for tenancy agreements to require a guarantor, who will be responsible for the rent if you fail to pay on time. It is important you are aware that if you do fall into arrears, your landlord can enforce the obligation on your guarantor.
What will happen if I don’t pay?
There are a number of consequences for failing to pay rent.
The most draconian measure your landlord can take is to commence the eviction process, alongside proceedings to recover the outstanding arrears, which could mean you receive a County Court Judgment (CCJ).
If you are given a CCJ it will stay on the register of judgments, orders and fines for six years and will affect your ability to obtain loans or a future tenancy, as banks and other companies use this information to decide whether to give you credit.
If you pay the full amount within a month of the CCJ being issued, you can be removed from the register. If you pay after this time, the judgment will be marked as ‘satisfied.’ This means it remains on your record, but anyone searching the register will see that you have paid.
My advice for landlords
There are two ways you can recover rent arrears, you simply have to decide whether you just wish to clear the debt, or evict the tenant as well.
To regain possession of your property and clear the debt, a notice will need to be served advising the tenant that arrears are owed and you intend to start proceedings in the County Court if the property is not vacated by a specified date. If this notice is ignored, you will need to arrange for bailiffs to attend. You can also attach a money claim to the possession order to cover the outstanding rent.
If you do not wish to evict your tenant, but still want the rent arrears to be cleared, proceedings for a money claim can be issued with a view to gaining a County Court Judgment (CCJ). There are a number of ways to enforce the judgement and the most appropriate will depend on the circumstances surrounding your matter. I would recommend seeking advice from a solicitor before taking action of this nature.
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