Hi all,
My client has a buy-to-let flat, which is let to a mate of her ex-, and they remain amicable. Usually...
The ex- has tended to collect the rental monies on her behalf and normally banks the money for her. This worked well until her ex got into financial difficulties and surprise surprise, she has not received four months' rent paid by the tenant. This was without her knowledge or consent. Her ex has promised to pay her back when his own business gets straight, but realistically, the debt is at best doubtful.
The ex is not a letting agent and I cannot find a definitive answer as to whether we may claim bad debt relief, given the not-quite-arms'-length nature of the theft.
Any guidance gratefully received with thanks.
Replies (5)
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Not definitive
but I don't think that any relief is available. The tenant has paid the rent to somebody approved (at the time) by the owner. I can't see that the fact that the ex has effectively stolen the money has any bearing on it.
I agree with Cloudcounter
Since the rent was paid by the tenant, there's no bad debt.
Relief would only, therefore, be available if it represented a loss arising out of the property business.
I'd say that the loss doesn't arise out of the business, but out of the proprietor's personal arrangements.
Going forward
Get the mate to pay the client directly or kick him out of the flat - if the client is not receiving the rent, she would be losing nothing.