Landlord asking for part of rent paid in cash each month

[blackfriar]

Hi

My parents are both in their mid-sixties and have retired. They are renting a property from some old acquaintance. I just discovered they are paying the landlord a total of £500/month rental charges, but agreed with the landlord to pay £200/month via standing order and have been withdrawing £300/month in cash and handing it over in person each month.

 

The landlord told them he previously charged £600/month but would only charge £500 if they paid in this way.

 

I am really concerned about this. Do you agree they should immediately and, without notice, start paying the total £500/month via standing order? Do they have a right to do this without fear of unfair eviction?

 

I'm very worried the landlord will suddenly claim my parents are in arrears with their rent payments, and make a huge claim.

 

How best to go about this please?

Many thanks in advance for your help.

[mariner51]

Does LL provide a receipt for each cash payment?

Parents should ask LL for up to date rent statement.

[blackfriar]

I just called them to get some more info. which may be useful:

 

AND this is the best bit. There is no tenancy agreement. They have not signed any contract with the landlord.

 

When they hand over the cash, they don't receive any receipts.

 

They have lived there for 2 years, and the landlord has just bumped the cash charge to £330/month.

 

The previous tenants, a couple, had a formal, signed tenancy agreement and it transpires they were only paying £500/month in rental charges. At the end of that tenancy, all of their £500 deposit was kept by the landlord due to "damage".

[renegadeimp]

Theyre being conned.

[gregs07]

Wondering if hmrc would like to be aware of LL's business model...??

[blackfriar]

My thoughts exactly, but I am concerned that if they report it immediately they will be unreasonably kicked out by the LL. We're at opposite ends of the country and both of their health is not fantastic.

[renegadeimp]

My thoughts exactly, but I am concerned that if they report it immediately they will be unreasonably kicked out by the LL. We're at opposite ends of the country and both of their health is not fantastic.

 

Well, since theres no tenancy agreement, then that needs to be dealt with first, so they have protection.

[blackfriar]

If they make a written request for one, again, i'm concerned the LL will simultaneously notify them of a significant increase in rent charges which they will not be able to afford due to a limited pension income. If this happens, what should/can they do?

[mariner51]

There is a TA in place, albeit only verbal.

Report LL to local Council TRO/ HMRC.

LL can serve 2 month Notice at any time after end of fixed term on any T.

[Steve__M]

Presumably they have no receipt for the deposit either?

 

If they eventually leave one option would be to not pay rent for the last month.

 

They are entitled to pay how they wish. However, they are at risk of eviction for doing so.

[king12345]

Don't throw petrol on the fire...

They've been ok for over 2 years, why disturb this balance?

You want the LL to pay tax in full?

Good, your parents will be served notice.

Want to pay all by bank transfer?

Fine, then the rent goes up by £100.

Sometimes it is best to mind your own business.

If the LL is not paying all the taxes he should pay, good luck to him IMO.

I despise people avoiding tax because then we all have to pay more, but I hate seeing old people kicked out of their home even more.

Your call.

[cfs_too]

Hi,

An easily solution for them is to secretly record the conversation each month when the money is handed over.

The landlord doesn't need to know, and there's proof if you need it later.

Best not to confront the landlord, as he'll most probably get them to move out.

Me_too