Problem tenants and how to deal with them

February 15th, 2017

PROBLEM TENANTS –  ‘all guns blazing’ or ‘softly softly’? 

Many landlords and agents panic when a tenant misses one month’ rent.  Getting to know your tenants payment habits helps very much when deciding what action is needed to be taken.  Do you go in ‘all guns blazing!’ or with a more ‘softly softly’ approach?

To begin with it is always beneficial to have a good working relationship with your tenants, be good to them, respond to their emails in a timely fashion, communication is key!  Respond to maintenance issues quickly and update the tenant where possible on the progress and the outcome.  Managing tenants expectations works wonders, for example inform the tenant that maintenance is dealt with as quickly as possible, and once they report a maintenance issue then they should expect the ‘trades-person’ to be entering in the next day or two.  Drop them a text if you can to let them know when they are due- this would be a perfect scenario. Tenants get to trust you and know that you are looking out for them.  On this basis, when things gets tight, and their rent is late, they will communicate with you.

When tenants don’t respond to a gently text reminder that the rent is late, or ignore your emails – this can be a warning sign.  At this point we go our of our way to make contact.  We gently ask them to respond, and to let us know ASAP if there is an issue, so we can help them find a solution.  In 99% of case there is always a solution.

Here is a step by step approach for you:

FIND OUT WHAT IS GOING WRONG

Make contact ASAP, give them a couple of days grace following the missed payment. Always take things softly at this stage, don’t be aggressive.  There can be many reasons why a payment is late, they may have swapped jobs and their employer pays later, and they just need to get back into the swing of things.  Maybe the standing order failed – and it will go out on the second attempt.  We all occasionally misjudge funds in and funds out.  In desperate situations, such as loosing a job, the tenant may need prompting to start a housing benefit claim.  If  the claim is started, it can even cover them for a few weeks.  Better to be proactive!

Speak with your tenant, find out as much information as possible to do with their current situation, so you can determine whether this is a blip, or a larger issue. Maybe they would prefer to vacate, don’t suggest this yourself! However the tenants questions may lead to this.  For example ‘how much notice do you require?’ . You the landlord will know if they still have months to go in their fixed term.  Sometimes its easier to re let, than to force a tenant to stay committed when it is going to get them in a worse position.

DOCUMENT EVERYTHING.

Keep a record of letters, texts and emails – you may need to show at some point, what steps you took to get the tenant to pay;  these  come in handy if you have to  evict the tenant at a later date.

With students, who are jointly and severally liable, if their payment is more than two weeks later, it is always a good idea to let the rest of the group know, in a joint letter to all parties.  If the tenant has a guarantor in place, let the tenant know my email and letter, that your next steps are to inform their guarantor, unless they make contact and arrange a payment schedule.  This usually pushes tenants to make contact!

PAYMENT SCHEDULE/OFFERING A SOLUTION.

Hopefully this is just a blip with your tenant, and with a little help and patience from you, they will get themselves back on track with a payment schedule.   Work out what they can afford to pay and when, and get them back on track ASAP.  If they are making a housing benefit claim, ask for evidence every step of the way.  Ask them to give the HB department permission for you to track the claim.  This is very important, as you can ensure its not be left in limbo!

It an be helpful to the tenant to agree to spread a debt over a few months, and tag it on to each months rent moving forward.  Ensure that this won’t delay the inevitable, by asking them to show you how they will be managing their income and expenditure moving forward.  They may not be too keen on this idea, no one likes income and expenditure sheets!

BEGIN THE NECESSARY STEPS TO GAIN POSSESSION – LEGAL ACTION.

Explain to the tenant, that you are issuing a section 21 notice to quit, and that if they get up to date with their payments or adhere to a payment schedule then you will not pursue the notice. However this notice sits in the background in case they fail to keep to their agreement.  It saves time later, when you are left no other option to get them out.

KEEP GOOD RECORDS OF ALL THE TENANTS PAYMENTS. 

Make a note of all the payments received by the tenant, and forward a receipt to them.  Up date your tenant regularly, so they can see what they owe.  It is better to keep an accurate record from the off, rather than trying to work it out later.  This can lead to a dispute also, and is unnecessary.

TAKE THE RIGHT LEGAL ADVICE.

Ensure the paperwork you issue is correct.  Use the proper forms.  Do  not try and wing it, this is fatal!  Any mistake in the paperwork or its content can  result in you not being granted possession of the property.  There have been many legal changes in the last year, so it is worth checking and getting the correct advice.

REMEMBER.

Landlords should not go to the property unannounced, too many visits can be construed as harassment. It could be argued that you are preventing the tenant from having ‘Quiet enjoyment of the property’, so always ensure if you are visiting to give 72 hours notice.  Stay professional, don’t give the tenant ammunition to pursue a claim for damages. 

 

 

 

 

 

 

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Letting agents worth the fee?

November 10th, 2016

Buy-to-let investors have traditionally had two choices when it comes to finding tenants and managing properties – pay a letting agent a sizeable fee or do it themselves.

Lettings agents will typically offer a “let-only” service, where they will find, interview and vet tenants, do the paperwork and take the deposit and first month’s rent for a fee of around £600 plus VAT. Then there is a “full management”service, which can cost 10 per cent of the rent or more. Here, the agent will continue to collect rent and deal with the day-to-day running of the property.

An agent’s services can be essential for landlords who have properties far away or a large portfolio to manage. But for those seeking a more hands on approach, Railton-Meeks can offer a more bespoke option to the landlord, see our list of services in our management section.

Happy to discuss your personal requirements.

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HMO Licence – Does your property need one?

May 10th, 2016

HMO Licence and Licensing

An HMO licence is granted to a landlord if an HMO property meets certain standards that ensure it is safe and suitable for the tenants. In addition most HMO landlords only need to obtain a licence if the property falls into the following criteria:

  • it is a three-storey house (including cellars, attics, basements, mezzanine floors and loft conversions). The definition of storeys includes habitable basements and loft conversions.
  • it is occupied by five (5) or more people from two different households or more
  • tenants share the kitchen, bathroom or laundry area
  • in some cases, a maisonette in a house or above commercial premises may need a licence if similarly, occupied

If your property is smaller and rented to fewer people, you may still need a licence for your HMO. This will depend on the area your property is located so is it always best to check with your local council for more information. 

Your HMO licence is valid for 5 years and therefore must be renewed before it comes to an end.

How to apply for an HMO License
The landlord must submit one (1) licence application for every property that will be rented out. A fee will be charged by the council for the processing of licence applications. Processing time can take anywhere between 6-8 weeks. The council will consult with individuals who may be interested in the property and deliberate whether licence conditions should be imposed for the HMO in question.

All licensed HMOs will be inspected to identify any need for repairs, or to assess fire safety, amenity or other safety concerns. Landlords must comply and bring their property up to standard within timeframe that is determined by the council.

The gov.uk website has an HMO guide that covers everything you need to know as property manager or HMO landlord.

New to HMO’s? Looking for a reputable property management agent to manage and maintain your HMO properties? Call HMO specialists Railton-Meeks today to discuss our specialist HMO management services. 

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Considering an HMO property as your next investment purchase?

May 9th, 2016

Are you considering an HMO property as your next investment purchase?

The Housing Act 2004 introduced a new definition of a House in Multiple Occupation (HMO) from 6th April 2006 in England and 30th June 2006 in Wales.

When you let a property which falls into one of the following types, it is an HMO:

  • An entire house or flat which is let to 3 or more tenants who form 2 or more households and who share a kitchen, bathroom or toilet.
  • A house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to 3 or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities.
  • A converted house which contains one or more flats which are not wholly self-contained (i.e. the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by 3 or more tenants who form two or more households.
  • A building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies.
  • In order to be an HMO the property must be used as the tenants’ only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges.

Whilst there has previously been no specific definition of an HMO in Planning legislation, changes introduced by Government to the Use Classes Order in England only mean that there is now a legal definition for planning terms which means that an HMO has the same meaning as in Section 254 of the Housing Act 2004.

Two specific sets of Regulations have been introduced in England taking effect from 6th April 2010. They are The Town and Country Planning (Use Classes) (Amendment) (England) Order 2010 and The Town and Country Planning (General Permitted Development) (Amendment) (England) Order 2010

Any new property to be occupied as an HMO in England will need planning consent under class C4 (HMOs), but planning consent will not be needed for any HMO reverting back to class C3 (dwelling houses). The Regulations do not apply retrospectively to any existing HMOs.

Tired of the maintenance headaches and regulations that come with managing HMO’s? Let HMO specialists Railton-Meeks manage and maintain your HMO for you, call Sylwia our Property Manager to discuss your requirements. 

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Can I put my rent up?

November 11th, 2015

Landlords can’t just go round increasing their rents whenever they want to. They do, however, have a right to adjust the rent at certain intervals. The way in which they can go about increasing the rent will depend on whether the tenancy is fixed or periodic.

Continue reading “Can I put my rent up?”

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Landlords are you compliant with the new legislation out yesterday? 1st October 15.

October 2nd, 2015

After a long-winded route through parliament, new regulations are now in place which affect all private landlords in the UK. From 1st October 2015 landlords must have at least one smoke alarm installed on every storey of their properties and a carbon monoxide alarm in any room containing a solid fuel burning appliance.

Continue reading “Landlords are you compliant with the new legislation out yesterday? 1st October 15.”

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Need possession of your property? Here is a guide.

September 14th, 2015

Introduction

This guidance has been prepared for landlords who wish to gain possession of a privately rented property let on an assured short hold tenancy.

You are likely to be letting on an assured short hold tenancy if:

  • you are a private landlord
  • the tenancy began on or after 28 February 1997
  • the house or flat is let as separate accommodation and is the tenant’s main home

Continue reading “Need possession of your property? Here is a guide.”

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Eight things that as a Landlord you should always convey to their tenants …

April 25th, 2014

The relationship you have with your tenants ideally should be a good one, this will help to ensure that your properties are creating income for you. Tenants who are happy with their home and are living comfortably will be more inclined to stay on.  Here is are my four ways of keeping our tenants happy from the outset.

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Court Deposit Legislation in Turmoil – Be warned! Does a Periodic become a new tenancy?

November 18th, 2013

PIMS – Court Deposit Legislation in Turmoil – Be warned !

Major consequences are expected for the private rented industry with the latest Court of Appeal judgement that opens up landlords to legal action from tenants because of unwittingly breaking the law on tenancy deposit protection.
The case that the judgement was passed is “Superstrike V Rodrigues a Court of Appeal Ruling

Continue reading “Court Deposit Legislation in Turmoil – Be warned! Does a Periodic become a new tenancy?”

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