Rent Arrears

Question 1

What is the first remedy for non-payment of rent

Answer 1

Contacting the tenant via phone and email to keep a record. Offer and negotiate a payment plan, ask to see their accounts to see if they are struggling

Question 2

Can you use the deposit

Answer 2

• If the tenant has a deposit then you can give the tenant notice that you are using this and ask them to top the deposit back up
• Disadvantage is that if they don’t then you don’t have this as a back up for next time – however may suggest that the tenant is struggling

Question 3

What about a guarentor

Answer 3

• Check the provisions in the lease AND the
  guarantee given by the guarantor
• Usual way to enforce the guarantor’s obligations would be to issue court proceedings.

Question 4

When do you use a winding up petition (aka compulsory liquidation)

Answer 4

1. Ltd companies only
2. Make sure co not going bankrupt already
3. they must owe £750 or more and be able to prove they cant pay you
4. Assets are sold, legal disputes settled, funds are paid to you and other creditors
   5/ Fee £280 for court fees and £1600 for petition deposit