Tenant proposing Payment plan - how best to implement?
Rent Arrears

MCSF
MCSF
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3 Posts
1 month ago
0

Hi all

Looking for some advice with a tenant who has been in arrears for 7 months and is saying that they are going to move out and that they want to set up a payment plan.

Trying to keep it short here - we currently have a claim in with the courts for a section 21 but the court is dragging their feet (We submitted the N5B in January and they've been wasting time sending letters asking questions that show they clearly haven't read the N5B) so I don't know when we will actually get that possession order. Could be a while!

In the meantime the tenant has told us that they are intending to leave tomorrow and want to set up a payment plan for £500 per month for the arrears. At present the arrears are £12.5k so will take just over 2 years at that rate. I'm comfortable with the proposal, but I'm seeking advice on how to set up the payment plan.

Should I just type up the terms and have them sign it - would a court accept this if they stop paying at a later date? Or do I need a solicitor to draw up a contract & if so Is there a particular type of contract I should be seeking, or some other way to do this in a legally provable manner if I have to pursue the tenant for the money later?

I was thinking that I would have them sign something that clearly outlines the agreement and the schedule of payments, then have them BACS me (or my letting agent) the payments, then if they fail to make the payments I would start an MCOL claim.

I am not holding my breath on either them leaving or making payments actually happening given how flaky they have been so far, but willing to give them the benefit of the doubt until they prove otherwise.

Any info appreciated.

Matt

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