One of the risks of renting out properties is having a tenant who fails to pay rent or causes damage to your property. In such cases, you might need to take legal action against the tenant to recover the costs.

This is where County Court Judgments (CCJs) come in. A CCJ is a legal order issued by a court against a debtor who has failed to pay back money they owe. It can be issued for a range of debts, including unpaid rent owed by a tenant.

In this guide, we’ll cover everything you need to know about CCJs as a landlord, including what they are, how they work, and what you can do to avoid them.

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What is a CCJ?

A County Court Judgment (CCJ) is a legal order issued by a county court against an individual or business who has failed to repay a debt. The CCJ sets out the amount owed and gives the debtor a deadline to pay it back. If the debtor fails to pay the debt within the deadline, the CCJ will remain on their credit file for six years, which can have serious consequences for their financial future.

How does a CCJ work?

If you’re a UK landlord and your tenant owes you money, you can apply to the court for a CCJ. To do this, you’ll need to provide evidence of the debt owed, such as unpaid rent or damages to your property.

Once the court has issued a CCJ, your tenant will have 14 days to respond to the claim. If they do not respond, the court will enter a judgement against them, and they will have a CCJ registered against their name.

If your tenant does respond and admits to owing the debt, they can agree to a payment plan with you or the court. If they deny owing the debt, the court will hold a hearing to determine whether or not they owe the debt.

What are the consequences of a CCJ for tenants?

A CCJ can have serious consequences for tenants. It will remain on their credit file for six years, which can make it difficult for them to obtain credit in the future. This can include credit cards, loans, and even mobile phone contracts.

Their ability to rent a property can also be affected. Landlords may check a tenant’s credit history before agreeing to rent to them, and if a CCJ is found on their file this could be seen as a red flag. In some cases, landlords will even reject a tenant with a CCJ outright.

How can landlords avoid CCJs?

There are several things you can do to avoid CCJs, including:

• Screen tenants carefully: Conduct thorough background and credit checks on potential tenants to ensure they have a history of paying bills on time.
• Sign a tenancy agreement: Have tenants sign a tenancy agreement that sets out their obligations, including paying rent on time.
• Act quickly: If a tenant falls behind on rent, take action quickly. Send reminders and issue a Section 8 or Section 21 notice if necessary.
• Consider using a guarantor: Require tenants to provide a guarantor who will be responsible for paying rent in the event the tenant fails to do so.
• Work with tenants: If a tenant falls behind on rent, try to work with them to come up with a payment plan that works for both of you.

FAQs

How can I check if my tenant has a CCJ?

You can check if your tenant has a CCJ by conducting a credit check. You can do this through a credit reference agency such as Experian, Equifax, or TransUnion. You’ll need your tenant’s permission to run a credit check on them.

Can I still evict a tenant if they have a CCJ?

Yes, you can still evict a tenant if they have a CCJ. However, a CCJ doesn’t automatically give you the right to evict a tenant. You’ll still need to follow the correct legal procedures, such as issuing a Section 8 or Section 21 notice.

Conclusion

As a landlord, understanding what a CCJ is and how it works is essential. By taking steps to avoid CCJs, such as screening tenants carefully and acting quickly when rent is unpaid, you can protect your rental business and avoid potential financial losses. Remember, if you do need to apply for a CCJ, it’s important to follow the correct legal procedures and seek legal advice if necessary.

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