Helping you choose which legal rights at your disposal to deal with bad debts and money claims
Bad debt is a specific debt that is almost certain to not be paid. This is typically in the case of a tenant leaving the property without contact, or being declared insolvent or bankrupt - and there is essentially no hope that they will recover the sums owed.
As a landlord, you have multiple legal rights at your disposal to deal with bad debts and money claims, but it is vital that you choose a recourse which is in line with your legal obligations or face financial penalties yourself. An option for you as a landlord is to make a reasonable adjustment for the debts that are not yet definitely bad, but where it is unlikely that full payment will be made. Or, you may choose an option that chases the bad debts and recovers what you are owed. Such a decision should be made with all the circumstances in mind, understanding your legal duties before beginning any recourse.
The experts at AST Assistance have helped numerous landlords through circumstances involving bad debts and money claims, allowing them to efficiently manage rent and debt issues with their portfolios. To start the effective process against bad debts and money claims, get in touch with our team today by calling us at 01706 619 954, emailing firstname.lastname@example.org, or filling in our online form to request a call back.
How we can help
Bad debts can open stressful periods for landlords. Bad debts affect the tax management for landlords who prepare their accounts on a cash basis - which covers rent paid, and not rent due.
In recourse, there are a few options available to landlords in order to resolve the issue. The reasonable options include:
- Starting possession proceedings in court
- Employing a lawyer or debt collection agency
- Contacting the tenant directly
However, these options are often costly and time-consuming, not to mention providing no assurance that the matters will be resolved.
AST Assistance has helped landlords understand how to effectively manage their tenants’ bad debts and money claims and is renowned for providing in-depth guidance to allow you to understand your legal rights and the paths you can take to recuperate the money owed.
We will use our extensive experience in property law and bad debts to find a solution that effectively deals with your tenant’s bad debts, while ensuring that you adhere to your landlord’s legal obligations.
Having helped countless landlords with bad debts and money claims, we have developed a streamlined service that leaves you best placed and informed to approach the bad debt situation in such a manner that gives you the best chance of recovering the debt owed.
Will my tenant’s bad debt affect my credit?
Often, we find that landlords are confused about the implications of a tenant’s bad debts on your credit score. Despite some reports, credit reference searches are attributed to the individual, and not the address.
As such, a previous occupant's credit file will not damage your own, nor will other lodgers or flatmates residing at your property.
Can I backdate a money claim for bad debt?
Something that many landlords in the UK don’t realise is that they can claim any rent arrears owed to them by previously evicted tenants for up to six years.
If a landlord wishes to take legal action, such as beginning Court proceedings, a claim for rent arrears can be backdated to six years from the date was considered due - and not the date the tenant left the property.