Mortar and Margins 13
You are a busy landlord. Your joint tenants have been a minor irritant for some time due to neglect of the property and unnecessary call-outs. Then one of them leaves. The remaining tenant says she cannot afford the full rent alone. Legally, both are jointly and severally liable – but in practical terms, you now have a problem
This scenario highlights the difference between what the law allows and what happens in real life. A joint tenancy means each tenant is responsible for the full rent. But if one walks away and refuses to pay, enforcement is rarely straightforward. Prevention is almost always better than cure.
Set expectations at the start
Much of the solution lies in how the tenancy is structured from the outset. Before granting a joint tenancy, landlords should assess whether each tenant could afford the property independently. If neither could, the arrangement is inherently fragile.
There are practical safeguards. A joint and several guarantor can provide an additional layer of security. Alternatively, one occupier might be structured as a permitted occupier rather than a named tenant. That distinction can be important. If the relationship breaks down, the permitted occupier does not have the same rights as a tenant – though removal would still require a legal process.
It may feel negative to plan for a breakup before the tenancy even begins. However, clearly setting expectations at the start – explaining what would happen if one party leaves – can prevent confusion and conflict later.
Recovering unpaid rent – theory versus reality
If a tenant leaves and refuses to pay, landlords do have legal recourse. In practice, however, debt recovery in tenancy cases is rarely lucrative or simple. Many no win, no fee debt collection services will not engage with tenancy disputes because the sums involved are often too small and enforcement is difficult.
The formal route is typically through the Government’s Money Claim Online system. A claim can be issued through the County Court, potentially leading to a County Court Judgment. That judgment can then be enforced – for example, via attachment of earnings.
But enforcement is rarely straightforward. If you lack key information, such as a tenant’s National Insurance number, pursuing attachment of earnings becomes more difficult. Even when a judgment is obtained, collection rates are often low. Some debtors move between jobs to avoid deductions. Others offer token repayment plans that can stretch for years.
Nevertheless, following a clear, consistent process matters. Letters before action, proper notice of proceedings, and clear communication about the consequences of a County Court Judgment can prompt payment before matters reach enforcement. Many people are understandably cautious about damage to their credit record. A defined process – followed through rather than abandoned when it becomes inconvenient – often produces better results than half-hearted pursuit.
In some cases, debts resurface years later. A former tenant may discover a County Court Judgment while applying for a mortgage. At that point, the debt – often with statutory interest added – must be addressed. The obligation does not simply disappear.
Should landlords avoid joint tenancies?
Not necessarily. Joint tenancies can enable tenants to access properties they could not afford individually. In higher-cost areas, especially in parts of the South and London, combining incomes is often essential.
However, caution is vital. Robust referencing, guarantors where appropriate, and honest conversations about affordability are key. Ultimately, tenants should be placed in properties they can realistically sustain.
The practical takeaway
For landlords, the message is twofold.
First – structure joint tenancies carefully. Stress-test affordability, use guarantors where possible, and plan for the possibility that one tenant may leave.
Second – understand and commit to a clear arrears recovery process. Legal remedies exist, but they require persistence and realism about outcomes.
Mortar & Margins is produced in Solihull by Propenomix. Its editors are Duncan Hooper and Adam Lawrence