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How to Recover Rent Arrears from Departed Student Tenants

What happens when the student tenant vacates with rent arrears? This is not just a problem for property owners renting to students, but the whole market. Hopefully, you’ve mostly experienced good and responsible tenants who pay their rent on time. If this has happened to you, there are steps you can take.

 

Why You Need a Lead Tenant

If you’re experiencing this problem now, then it stands as a good reason for why a lead tenant should be selected for each new tenancy. One person responsible for ensuring the bills are paid, that rent is collected on time, and an easily-reached contact for letting in repair workers and so on.

 

Trace the Lead Tenant

Assuming they are returning to their parental home after the end of their tenancy or graduation, this should not be a problem. Their out-of-term address should have been supplied when they moved in and when you conducted the right to rent checks. Contact the lead tenant at first. It may be that if the rent was short, one person was responsible and not the group; ask for that person’s details.

 

Deduct from the Deposit

Sadly, it’s too common that a departing tenant will simply not pay the final month of rent. They feel that the deposit should cover it. Of course, that is not the intended use. It’s there to cover damage and missing items. You are entitled to claim the money to cover the final month of rent when you apply for release of funds. However, this can be problematic if there are broken items, damage or repairs needed and the cost of repair and final month of rent far exceeds what is owed.

 

Pursuing Unpaid Rent Options

You have several possible avenues to pursue:

  • You can apply to the courts for a type of CCJ called Attachment of Earning Order. If the person or people responsible are employed, the court can impose a deduction from the former tenant’s salary to get back what you are owed. If they are not employed at this point, you may win the CCJ but receive no money
  • Small Claims Court will cost you money, but not as expensive as pursuing other legal methods. If you are owed up to £1,000, it will cost you (at November 2018) £140. But this is better than getting nothing back
  • A Garnishee Order is used in cases where the departing student tenant has not paid their rent because they were owed money from a third party who has so far failed to pay. Instead of pursuing the tenant, the court will pursue their debtor. This method is useful if the lead tenant is taking the flak for another student who failed to pay or unpaid contract or freelance work