Tuesday, 4 November 2014

The importance of paperwork….any paperwork


Increasingly I am seeing more and more tenants come to me with letters, not notices, from their landlord claiming there are thousands owed in unpaid rents.

The tenants, of course are adamant that they have paid in full and on time, but the landlord, when asked are unable to produce a full statement of account from the commencement of the tenancy to date.

The main problem is landlords and tenants fail to keep the arrangement business-like and fall fowl of agreeing to accept/pay rent by cash, not getting a receipt or a landlord may agree to let a tenant off one month due to repairs or such like, but fails to clarify this in writing then years down the line cant recall the agreement.

From the moment a tenancy starts and you receive the first month rent and deposit, you should start to keep track of these funds, even if it is nothing more than an excel spreadsheet.

If it can be avoided, don’t accept cash but if you do always always issue a receipt and note down that it was received in cash.

I recently had a case where a landlord had claimed over £8k was owed in unpaid rent from the date the tenant moved in in 2007, there was no record of the rent due/paid and after a strongly worded email the landlord finally sent me a hand written rental account, however after spending hours trawling through the tenants bank statements I managed to account for nearly £5k of these alleged unpaid months.

As the tenants was unable to prove the remaining £3k the landlord proceeded to court, and as I’m sure you can all predict, the judge didn’t even entertain the case as the landlord could not provide proof the rent had not been paid.

The moral of this story is, make sure you always keep accurate records no matter how simple, because it could mean the difference between winning and losing in court.

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