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What is a Receiver of rent?
A receiver of rent is appointed by the lender to take control of the property and accept the rental payment direct from the tenant. In turn the receiver will then pass the rental onto the lender. A receiver is normally appointed when the landlord is in breach of their mortgage conditions. The receiver effectively steps into the shoes of the landlord and takes over the running of the property and is responsible for all repairs and health and safety matters. Therefore, the tenant can stay in occupation assuming of course that they occupy in accordance with their own tenancy agreement and all rights are protected.
However, the tenant will be required to pay rent to the receiver/receiver’s manging agent NOT the landlord or their managing agent. The receiver will deal with all repairs and tenancy renewals and the receiver will also provide the tenant with full contact details of their managing agent.
The Process
The receiver will contact the tenant and advise them that they have been appointed. At that stage, the receiver will ask for certain items of information such as the amount of rent paid, the frequency of that payment, the deposit and the details of the tenancy deposit scheme in which the deposit is held. The receiver’s appointed person will then arrange to visit the property to provide full details and address any concerns that the tenant may have in respect of the process. They will also complete the required information plus take details of any items of disrepair. The appointed person will also require copies of the tenancy agreement, any safety certification e.g. gas and electrical and any HMO licensing.
This will then be followed up by a surveyor’s visit, who will inspect the property to ensure its compliance with health and safety requirements and consider any repair items.
It is very important that the tenant complies with the request for access and is also able to show that they have a legitimate right to reside in the property. Failing to acknowledge will lead to formal proceedings to obtain vacant possession.
Useful Links
https://www.citizensadvice.org.uk/ Citizens advice
https://www.nrla.org.uk/ National Residential Landlords Association
