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How to deal with difficult tenants

Monday, November 08, 2010

Sooner or later every property landlord, whether they are renting out commercial or residential property, is going to have to have to deal with problem tenants.  Unless they are very lucky indeed.  

So, it's as well for every property landlord to have a battle plan. 

By and large, issues with tenants will fall into the following areas: 

  • Neglect of your property
  • Breaking the terms of the lease
  • Complaints from neighbours
  • Non-payment or often late payment of rent
  • Refusing to move out at the end of a tenancy agreement 

Solving all these problems break down into two fundamental approaches (and one safeguard). 

One, as soon as a problem is apparent, open lines of communication. The first of these should be informal - talk to tenants about the problem, explain why it matters and what the consequences will be if it isn't addressed. 

Two, if you have communicated the problem and tried to reach agreement to resolve it and this has not provided a solution, then steps will need to be taken to remove the tenant. 

The safeguard (mentioned above) is having a good insurance policy in case rent is not paid. Months without rent - or 'voids - are a landlord's nightmare, so insuring against them can be a wise investment indeed. 

Non-payment of rent is by far the most common problem landlords will face.

And ten per cent of all renters are categorised by landlords as a  'nuisance', according to Landlord Action, a firm that helps landlords retake possession of their properties. 

If the communication route doesn't work, a landlord will need to evict.  

Incidentally, it's worth pointing out that the best way to avoid this unfortunate process is to be thorough when vetting tenants in the first place.  Check references - also preferably ones relating to the property prior to the one tenants are moving from - some landlords will give a decent reference just to get rid of a bad tenant! 

Get references from banks and employers and make sure a credit check is carried out, a simple and inexpensive process.  Also make sure you take a deposit of a month's rent, at the very least. And make sure a proper inventory is carried out. 

Back to evictions.  These are never pleasant and can prove costly. 

There are measures that can be taken before going to court, however. The golden rule, though, is to do everything professionally and by the book. Changing locks and any kind of harassment are absolute no nos. 

The other golden rule is to be fast. As soon as rent is overdue, swing into action.  Contact the tenants, visit, phone and write. Do this several times, even in one day, if it seems necessary. 

If all else fails, it's time to get legal. 

Landlords can obtain a Notice to Quit from any local magistrates court. The key here is to ensure that all the paperwork is in perfect order. If not, a court is very likely to throw out your case, however solid it might otherwise be. 

In any case, tenants must by law be given written notice that the landlord plans to repossess the property through the courts. The notice period will vary according to the grounds upon which the landlord is seeking repossession and court action can't start before the notice period has expired - so, once again, it is important to follow proper procedure precisely. 

Overwhelmingly, the commonest reason for wanting to evict a tenant is non-payment of rent, this goes for commercial as well as residential properties. 

The procedure - if your grounds are sound - is fairly straightforward and can be carried out without professional legal help, in theory.  If you choose a DIY approach, the Court Service provides guides on procedure and how to fill in forms correctly (although they do not offer advice); and, of course, there are Landlords' association to offer support and advice.  But, if in any doubt, get professional advice.

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