3 vacant properties v 2 separate tenants not paying rent?

by Readers Question

12:03 PM, 8th October 2020
About 2 weeks ago

3 vacant properties v 2 separate tenants not paying rent?

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3 vacant properties v 2 separate tenants not paying rent?

Hi, I have 3 vacant residential properties -V- two tenants who are not paying their rent since February 2019. Possession for one property was granted 7 months ago in March 2020 and the tenant is still occupying the house.

I am now reluctant to rent the three other properties fearing what will happen and the financial consequences if the new tenants follow the same path and also decide not to pay their rent.

Can anyone please advise me on what they think is best to do in the current climate, because I’ve been losing rental income on three vacant properties since March 2020!

Many thanks

Kabir


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Comments

Robert Mellors

13:47 PM, 8th October 2020
About 2 weeks ago

Lease the vacant properties to a council or housing association or charity, so they take the risk instead of you.

TrevL

14:00 PM, 8th October 2020
About 2 weeks ago

If vacant, sell the properties, if the media are to be believed were experiancing a bit of a boom at the moment. Not knowing your position you may exit with a profit.

Smartermind

11:30 AM, 9th October 2020
About 2 weeks ago

Seems a bit absurd to keep properties empty for fear of losing rent when while they are empty you are actually not getting any rent. Either sell up or let them out (if you can) but ensure you do proper referencing and get guarantors.

psquared

11:32 AM, 9th October 2020
About 2 weeks ago

A couple of alternatives that may be helpful.
1)If you do a full tenant referencing you should be able to buy rent insurance you can offset the cost against tax and you have the peace of mind that if the worst happens your rent is covered as is the cost of eviction.

2)Insist of a guarantor. If you have a guarantor who is a homeowner you have a bit more security because you can go after them knowing they have something to loose.

Not ideal but it does help to mitigage the risks.

David Price

12:13 PM, 9th October 2020
About 2 weeks ago

In the midst of a housing crisis the government has created a situation where landlords feel it is better to have empty property. You could not make it up!

I am in the same situation, plenty of empty properties and prospective tenants sleeping on the streets.

NewYorkie

12:55 PM, 9th October 2020
About 2 weeks ago

Why is the tenant still there after 7 months?

I'm interested because I served a S.8 on Grounds 8, 10, 11 for 6 months' arrears yesterday, and now have video evidence in support of Ground 14 ASB, so may add that.

dismayed landlord

16:25 PM, 9th October 2020
About 2 weeks ago

Yes Kabir and David, I am in the same boat. I could let one out again (and its all 2021 compliant and totally modern now) but too scared that I'll be mugged over for the rent - and that includes by my local Council! Dartford - if the last fiasco is repeated - or not being able to get the tenants out when I want - and that includes 2 non payers at present with kids. Sorry Robert but in my experience the charities and housing associations only do so much and you will end up still being very involved and losing out financially. They are in it for the money not to make your life simple. . I actually do not want to sell this year (paid enough CGT already) but the fear of CGT rising and prices crashing is a big incentive to having it on the market and seeing what happens. Then there is factoring in the stamp duty effects till March 2021 and now the 95% mortgage promise. If I have read it right, to get generation rent into generation buy in one easy move? Well its been tried before. Thankfully RPS is only an investment and involves me in no effort, nor threat of penalties if I screw up, so I can just sit back and watch the cash pour in. Hate to think how much time and effort it would be if repairs were required, rent pursued and legislation changes continually had to be met. I'd end up with sleepless nights and working a full time job whilst stressed out worrying how to pay my bills. However I will feel good about the tenants welfare and my heart will glow with happiness for them. And i will have paid enough to help reduce the governments debt substantially whilst being threatened by them to keep up to date with the latest legislation. Keep kicking Boris - I am getting immune to it.

NewYorkie

16:31 PM, 9th October 2020
About 2 weeks ago

Reply to the comment left by David Price at 09/10/2020 - 12:13
I kept my house in London empty for a year before selling. The combination of a high rent, high mortgage, and S24, added to my personal income, would have crucified me.

Kabs

18:07 PM, 9th October 2020
About 2 weeks ago

Reply to the comment left by NewYorkie at 09/10/2020 - 12:55
Hi property is empty for 7 months because of the lockdown and courts not giving eviction date to bailiffs.


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