will this affect my credit rating

[mandimoo]

i let out a house, using a letting agent (cos im not really a business woman, just lucky to have a spare house!). i had a tenant who had signed the tenancy agreement till march, but then he decided to get a mortgage and moved out, notifying the utility companies, who are now chasing me for payment (standing charges and water rates). im refusing to pay because the tenant is obliged until march unless the agent finds a new tenant. the utilities are waiting for the agent to fax a copy of the letting agreement showing the tenant is liable till march but the agent has been so slack that i have had red reminders. i know that i am not liable for these bills but will the red reminders give me a black mark on my credit rating? and will the black mark be erased when it all gets sorted?

[Buenchico]

The terms of any contract which exist between you and your former tenant can't modify the terms of the contracts which existed between him and the utility companies. His contracts with them stated that he'd pay the bills during the time which he occupied the premises and that the contracts would come to an end when he notified those companies that he'd vacated the premises. Thereafter it's up to you, as the landlord, to either pay the bills or to suspend the supply of the relevant services which bring about those bills.

The utility companies have every right to pursue you for payment, through the courts if necessary. A few red bills will probably have little, if any, significant effect on your credit rating (as long as you pay quickly). However further delay in paying them (particularly if the utility companies seeks CCJs against you) will have a severely detrimental effect. It could then take several years to re-establish a decent credit score.

As stated above, your contract with your former tenant is irrelevant to the utility companies. They can (and almost certainly will) continue to seek payment from you. It's then up to you to chase your former tenant for the money you've had to pay out as a result of him failing to meet the terms of his contract with you.

Chris

[mandimoo]

thank you buenchino. i think i need to have strong words with my agent as that is certainly not the impression they have given me, but what you are saying makes sense.

[Twenty20]

No, I don't agree. The tenant is responsible for all standing charges etc up until the end of his Agreement, or until you accept that the Agreement is terminated. This obviously hasn't happened. Whether the tenant is living there or not is irrelevant, he is liable for these costs in the same way as he is laible for rent up until the time a new tenant is found or the end of the Agreement, whichever comes first.

If you end up paying these charges yourself you can deduct them from the deposit being held.

[Nosha123]

can you contact the companies concerned and ask for time to pay? I dont know if they will agree - but most are quite co-operative if someone has financial problems and will set up a payment plan. At least that way your credit rating cannot be harmed! and you have time to chase the person who rightly should be paying...

[Oneeyedvic]

In answer to your actual question (Will this affect me credit rating) the answer is no.

Utility bills are not reported on CAIS information which is used for credit ratings. The only time this will affect your credit is if a county court judgement is obtained against you.