deposit and needed work on non rent paying tenant

[pepperpot]

I have a non paying tenant. more than two months in arrears and counting. Problem!! when he started he couldn't afford the entire deposit so I agreed to just half and said it would be used for advance rent instead of a deposit (don't know what I was thinking of). So what now. It isn't in the tenats deposit scheme. Can I put it in retrospectively (though I actually need it to pay the mortgage on the place but realise I could be in trouble). Also said tenant has said there's a problem with electrics in flat. I have no money to fix this without his rent. Legally am I liable?? I am totally in the doo doo without his rent and am behind on management fees and mortgage. I have no idea what to do. Was trying to help but now I'm in trouble.

[Nosha123]

do you have a proper contract between you.. if he hasnt paid in 2 months you need to get rid of him PRONTO... and get a new paying tenant in! If he hasnt paid for 2 months he wont for the next 2. Has he lost his job??? If he has he could claim benefits to cover his rent couldnt he!
If he is working and earning - why isnt he paying you!
What is wrong with the electrics.. are they dangerous? Do you know the problem (If there is one!)

[Twenty20]

Do you actually have it in writing with your tenant that the money you took (equivalent to half the deposit) was going to be used as rent? If you have it in writing, then there is no deposit and the tenancy deposit scheme doesn't apply.

If there is nothing in writing then you'll have to assume it's still regarded as a deposit and you need to put it in a scheme. It can be done retrospectively which will stop any action by the tenant to claim 3x the deposit. You would need to do that asap.

You can't use the tenant's deposit money to pay your mortgage, it's not your money it's theirs.

It's obviously hindsight now but you really have to have enough money behind you to allow you to cope with non paying tenants and void periods in between tenancies. You can't let houses out on a shoe string.

How far into the tenancy agreement are you with this tenant? How long to go till the end of the fixed term? If the tenant is two months overdue with his rent you should issue an s8 notice now. You can also issue an s21 which will be effective at the end of the fixed period, whenever that may be. If you don't know what to do consult a solicitor.

With regards to your mortgage, you can switch to interest only if you haven't already, which will cut your costs considerably.

I think you've probably learnt now, if a tenant can't afford the deposit then they probably can't afford the rent either.

[pepperpot]

Firstly, he was a contact of a friend, was there for over a year before problems (think a messy divorce not sure). He missed Dec and Jan (bounced cheques and made promises). New verbal agreement of him paying weekly to try and help. Since then its been excuses, late payments, etc but always promises.
When I took the deposit I added in the terms and agreement of his contract::
"5.1 "The deposit, � 200 will be protected by The Deposit Protection Service (The DPS) in accordance with the Terms and Conditions of The DPS. The Terms and Conditions and ADR Rules governing the protection of the deposit including the repayment process can be found at www.depositprotection.com" Not Applicable as as soon as tenant moves in this is to be used as advance rent, not as a deposit"
Does this count?
As to having enough money - originally I did but with him and a managing agent asking for �2500 since Oct it's all been wiped out.
The mortgage is interest only.
The s8 and s21 notices - where do I get them? how do I do it? And has what I wrote on his contract covered me?

Thanks for your comments.

[Twenty20]

I find the wording of this confusing, it says you took a deposit of �200 but it's not a deposit. I think a Court would look on this as a deposit, no matter what you call it afterwards, and it should be protected. I would advise protecting this asap.

You can download s8 and s21 forms online (you could look first of all on the Landlordzone website) but, as the s21 in particular needs the dates and terminology to be accurate, I would advise getting a solicitor to do this. Probably not what you want to here as it will cost but better that than a tenant sitting in your property not paying rent.

[mandimoo]

if you have paid a managing agent �2500 since october you should seriously be telling them to sort this out for you.

[pepperpot]

Not a letting agent a managing agent. It's a leasehold property therefore there is a company that manages the upkeep for all the building. Mind I wonder what the h*** I am paying them for though as I have never paid this much on the outside of my house!! ;-) buts that's another question!!