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.