Eviction Notice: Rental Arrears

by Ruby on April 16, 2011

in Real Estate

As a landlord, you will need to keep an eye on your tenant’s rental payments. Necessary steps must be implemented the moment they fall on their first arrear. If you keep it coming, it could reach a point where the only way to resolve the issue is through eviction. As they say, prevention is better than cure.

If one of your tenants has failed to send his payment, contact him immediately. It could just be a bank mistake, so it’s pretty easy to sort out. However, if he is in financial difficulties, knowing the situation sooner is so much better.

A good tenant is worth keeping. If he had lost his job, you could temporary give him a rent reduction until such time he finds another employment. As a precautionary measure, you can serve the section 21 notice too.

Click here to know more about Section 21 Notice of Possession.

It’s better that both of you will reach an agreement, so that everyone knows their standing. However, if he rebuts, unwilling to cooperate or evasive, he left you with no option but to consider the eviction process, unless, of course, you want him to stay in your property for free!

Two Types of Court Proceedings (Rental Arrears)

  1. Accelerated Possession under section 21 of the Housing Act of 1988 (no court hearing)
  2. Rent Arrears Ground. Court order is only given after the hearing, which you or your agent will attend to present the evidence

It’s a criminal offense to evict your tenant other than a court order. So keep you cool. Most tenants will promise you a payment date or particular date to leave the premises. However, very few tenants can keep their word, leaving their landlords with heavy financial losses.

As a resort, possession notices should be served as a preventive measure in case no payment is received or the expiry date to vacate has been reached. The next step is to take legal actions.

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