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Thursday, 15 January 2009

Assured Shorthold Tenancy

You are a Landlord of residential premises let on an Assured Shorthold Tenancy and the tenant is not paying you rent . What can you do ?

OPTION A
AST near end and getting the tenant out is the priority – money is secondary

1. If you have dealt with the deposit correctly; are near the end of AST and are prepared to forego money, just give 2 month's notice under s21 Housing Act 1988, use the accelerated procedure and you get an order for possession quickly without a hearing. You cannot claim rent in those proceedings

2. The court will only award fixed costs - which are nominal

3. However, if at a later date, you can then find the tenant and you think they might be able to pay, you could then sue them separately for the money

4. If you have not dealt with deposit correctly, you cannot do Para 1 above

OPTION B
AST not near end and the money is important. Speed and possession is not the priority

1. If the AST has some time to go and whether or not you have dealt with deposit correctly, if the rent arrears are more than 2 months; you can serve 2 weeks notice under s 8 telling the tenant why you are about to sue him for possession and arrears

2. If the tenant is still 2 months in arrears at the court hearing, the court must give possession and will award the rent

3. If the tenant pays the rent or reduces the arrears below 2 months, you will not get possession and will have to content yourself with such installments as the court orders for any arrears

4. If the tenant does not argue the amount of rent payable, the court will probably only award fixed costs - which are nominal

OPTION C - AST near end and possession / money are of equal priority - speed not so important

1. If the AST is near the end and if you have dealt with deposit correctly, give 2 month's notice under s 21 to ask for possession and rent, but do not use the accelerated procedure, sue for possession - and rent (although do not use rent as one of the grounds for possession)

2. The court must give possession and will award the rent

3. The court might award fuller costs rather than fixed, nominal costs [serve schedule of costs claimed 24 hours before hearing]


MISCELLANEOUS

1. If the tenant proves over time to be a persistent offender , you may be able to get the court to recognize on the second or third court case and get an order for possession whatever the rent arrears are

2. It does not matter that someone else (not the tenant) paid the deposit

3. Until it is corrected, failure to deal with the deposit correctly leads to inability to use s 21 and possibly an order to repay the tenant 3 times the deposit


Call Felicity Keeler of Kaslers Solicitors LLP on 01622 891711

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Call Michael Breeze on 07900 195 195 or call 0845 270 2511 to if you need legal advise about any of these issues