Five students all paying rent separately on one property. They are contractually jointly and sev...
Five students all paying rent separately on one property. They are contractually jointly and severally liable for the rent. Some of the students are in arrears and others have paid in advance. Overall the rent is in arrears. A Let-only Landlord has asked for our advice. Three of the five have not paid and the Landlord asked whether he should leave the other two out of it.
The tenants are jointly and severally liable, which means they are a legal entity. This means that they are all responsible to make sure that all the rent is paid. Although it may seem unfair, this includes using money paid in advance to meet rent arrears.
We advised the Landlord that in future, when you accept separate rental payments for groups you should make it clear that you are accepting part payments for their convenience. It does not mean that they are only liable for 'their share' but are all liable for the whole.
Setting up the agreement properly at the start and communicating effectively throughout is the key to a smooth property management process. My team at Belvoir are dedicated to providing outstanding service to our Landlords. For more details, pop in for a chat and a cuppa, call me or check out our website.