Lost rent??? Advice please

SteoL

Hi,
A friend of mine was leasing a flat to a person for a number of years. He was an excellent tenant but after about 7 years stopped paying rent. He told my mate he'd have it next month. This went on for about a year. In fairness my mate should have thrown him out at this stage but he's a kind hearted fellow who kept believing that this (previously excellent ) tenant would come good. One day he went to apartment and yer man was gone, no sigh of him and no sign of the now huge rent bill.

Anywho, he managed to track yer man down at his job and he said he'd fallen on hard time, turned to booze and other stuff and wasn't in a position to repay the money owed. He said his salary was already spoken for to his creditors via a MABS agreement and couldn't pay anyone/thing else. My mate told people on the front desk where he works what the story was and how this person owes him a lot of money. Yer man is very p****d off over this and is saying he could lose his job and is now threatening to go to the PRTB and the Taxman about the properties my mate is renting out. Unfortunately my friend did not register the tenancies.

So few questions, could yer man actually lose his job because my friend told his employers about the debt. Has my mate any way of recouping the lost rent - even through a solicitor? He has no way of proving this money was owed - no rent book or anything like that. And can the other fella actually go to the PRTB about all of this given that he no longer lives in that place? A lot of questions I know but my friend is in a state over this and I'd really like to be able to help him in some way.

Thanks.

not even wrong

and is now threatening to go to the PRTB and the Taxman about the properties my mate is renting out.

Feel-good thread of the day, it's so nice when a crooked tax-cheating landlord gets his just deserts. Your friend will never get his rent, and he'll be lucky to avoid a Revenue audit too.

So few questions, could yer man actually lose his job because my friend told his employers about the debt.

You can be fired for almost any reason if you're still in your first year in the job, so it is technically possible for him to lose his job over this if he's only been there a short time, but he almost certainly won't. Why would an employer fire someone just because he owes someone else money?

whippet

while your mate might be pissed off and 12 months in the hole for rent .. his best bet is to move on and chalk it up to experience.

Very bad form discussing a private debt with a third unconnected party .. especially a fellow employee .... this could spark a complaint to either the revenue or PTRB .... leading to my next point ..

The amount of rent due for the 12 months is probably a small amount that the revenue would like to claw back in unpaid tax, interest and penalties that could be coming his way should a complaint be made (as you said he has other properties)

.... a tax dodger won't get much sympathy crying to anyone about being shafted ...

3DataModem

SteoL wrote: »

I'd really like to be able to help him in some way.

Thanks.

Help him?

Tell him to pay his GODDAMN tax.

SteoL

3DataModem wrote: »

Help him?

Tell him to pay his GODDAMN tax.

Oh I have believe me. Many many times and over many many years. He's still a good friend though and we do what we can to help friends. I've already told him to write it off and put it down to a learning experience but he seems to be getting very wound up over this, to the point I fear it may damage his health.

Thanks for the replies.

SteoL

whippet wrote: »

Very bad form discussing a private debt with a third unconnected party .. especially a fellow employee

Exactly what I told him and I was surprised when he told me what he had done. He's usually quite the calm fellow. Which is another reason I fear he might be cracking up.

Faolchu

SteoL wrote: »

Hi,
ns, could yer man actually lose his job because my friend told his employers about the debt. .

a lot of contracts have something in it about not bringing teh company into disrepute. Also if there was an altercation with your mate then the ex tennant could lose his job. or as was said if he's under 12 months with them then they can just sack him with nothing more than an "its not working out"

D3PO

im delighted your friend is out a years rent. I just hope the guy shops him to the taxman aswell

SteoL

D3PO wrote: »

im delighted your friend is out a years rent. I just hope the guy shops him to the taxman aswell

Charming :rolleyes:

3DataModem

OK I'll offer some genuine advice;

(1) If your friend's health is at risk, a visit to his GP -TODAY.

(2) The tenant has moved out with rent owing. Landlord has two choices;

A. Write to the tenant requesting the repayment of the rent (with dates etc) threatening legal action. If he does this he probably should do his 7 years tax returns retrospectively to get his tax affairs in order, so the tenant can't "shop" him to the PRTB.

B. Write it off as a loss, forget about it, move on.

(3) While the action was rash and foolish, your friend should not worry any more about whether his tenant loses his job or not (it is outside his control).

(4) If your friend is really worried about what happens if he is shopped to the PRTB / tax authorities, he shod contact the revenue in writing NOW and tell them he is making a "voluntary disclosure". Doing this mitigates a large part of the interest and penalties that might be due if he is audited.


I STRONGLY recommend a tax consultant is used as they can find exemptions etc that you may not know about. I had a 65k bill reduced to 40k due to specific exemptions (sometimes obscure) in CGT, Stamp Duty AND Income Tax after I was approached about an auditof my rental properties. Tax consultant cost me 2,5k, money well spent.

SteoL

3DataModem wrote: »

OK I'll offer some genuine advice;

(1) If your friend's health is at risk, a visit to his GP -TODAY.

(2) The tenant has moved out with rent owing. Landlord has two choices;

A. Write to the tenant requesting the repayment of the rent (with dates etc) threatening legal action. If he does this he probably should do his 7 years tax returns retrospectively to get his tax affairs in order, so the tenant can't "shop" him to the PRTB.

B. Write it off as a loss, forget about it, move on.

(3) While the action was rash and foolish, your friend should not worry any more about whether his tenant loses his job or not (it is outside his control).

(4) If your friend is really worried about what happens if he is shopped to the PRTB / tax authorities, he shod contact the revenue in writing NOW and tell them he is making a "voluntary disclosure". Doing this mitigates a large part of the interest and penalties that might be due if he is audited.


I STRONGLY recommend a tax consultant is used as they can find exemptions etc that you may not know about. I had a 65k bill reduced to 40k due to specific exemptions (sometimes obscure) in CGT, Stamp Duty AND Income Tax after I was approached about an auditof my rental properties. Tax consultant cost me 2,5k, money well spent.

Thanks for that will pass the info on.

I totally understand peoples reactions, I had a similar reaction when he told me he was not tax compliant. At the moment though I just want to be able to assist him in any way I can and hopefully he can get out of this in a fit state