The impact of unpaid rent
All landlords, whether they are private landlords or higher education institutions, are self-financing. So any losses incurred as a result of unpaid rent have a negative impact on them. Ultimately, this knocks on to other students in future years, who end up paying higher rent to make up the deficit. Unpaid rent can also mean that the landlord cannot afford to make improvements that they would otherwise have made for the benefit of their tenants.
The tenancy agreement: record of contract length and rent charged
The tenancy agreement is an important document. It will tell your child how long they are renting the property for and what their rent liabilities are. It may also set out the rent payment dates and any penalties for late payment. If your child is unable to pay their rent on a rent due date, the housing provider will often agree to a future date for it to be paid by. Encourage your child not to put their head in the sand and ignore the matter.
Housing providers will have an escalating rent collection system that includes a reminder being sent out, then a solicitor's letter and then ultimately court action.
Release from a tenancy agreement
Most housing providers will insist on the rent for the length of the tenancy agreement, regardless of whether your child is living in the property or not. So, if they decide to move out for whatever reason, they are liable to pay the rent up to the end date on the tenancy agreement. Even if your child leaves university, they are liable to pay the full rent.
Housing providers may allow your child to find someone to replace them and take over your child’s financial responsibilities, but ensure that your child is not assuming this will happen - there will be formal papers to sign to show they have been released from the contract.