It’s constant uproar – What would you do?
I own a small rental house miles away from me which is fully managed by an agent. My tenant constantly falls into arrears which until now she has eventually paid off, but she either ignores the agents or makes them promises she does not keep so she has caused a constant fuss.
After the virus hit she missed 2 full months payment. I told the agents to offer her a rent holiday on condition she set up a payment plan with them to pay off arrears. She ignored this and still didn’t pay.
My insurance has a rent protection module, so I then contacted my insurers. The insurers seem to have a very small window of time for accepting claims, they must be notified immediately the tenant is 2 months in arrears, but apparently (?) if the tenant then pays off some of that money they won’t deal with the claim anymore as the tenant isn’t 2 months in arrears anymore. Also the insurers demand a Section 8 or a Section 6a notice to be supplied as part of the claim.
The tenant has started paying off bits and pieces of rent, so is no longer in 2 months arrears, so I can’t progress my insurance claim at present.
The agents are constantly writing to me, because she is still in arrears, and she’s now trying to badger me to sort something out with her personally about future payments and bypass the agent. It is constant uproar.
I’ve blocked her phone number, but I have served her with a Section 6a so I can go ahead with the insurance claim if I need to. Her tenancy runs out anyway this month. Due to the court freeze, she would be leaving in early September.
It looks to me as if I will get rid of her at vast expense, but there is no guarantee I won’t get another tenant who is even worse.
I know I have very little experience of the property world so I wonder if there is a better way I could be handling this situation… Any suggestions please?
M&SFAN
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Member Since May 2016 - Comments: 1580 - Articles: 16
11:31 AM, 5th June 2020, About 6 years ago
Did you read our article a month or so ago, offering Free Advice ?
Member Since February 2018 - Comments: 627
11:49 AM, 5th June 2020, About 6 years ago
Get a new tenant, she is too high maintenance.
Member Since August 2016 - Comments: 18
12:53 PM, 5th June 2020, About 6 years ago
Have you thought of letting it as a shared house (hmo). If you have more than one tenant, non-payment by one individual has less impact. Also, if you choose the right type of person (viz. In employment, with a bank account, good reference etc.) they might keep the property in better condition, as they scrutinise each other; especially in respect of shared facilities such as bathroom and kitchen.
Member Since July 2013 - Comments: 1266 - Articles: 1
7:51 PM, 5th June 2020, About 6 years ago
Start the eviction, you obviously know not to bypass the agent. The insurers are all reducing their cover at the moment (even on existing policies) and will only pay if proceedings start and for a limited time. You should be covered for legal expenses though so use it and the agent, this is their area
Member Since July 2018 - Comments: 45
11:17 PM, 5th June 2020, About 6 years ago
There is only one way to avoid all the hassle, do as I did, sell up and enjoy life
Comments: 45
8:56 AM, 7th June 2020, About 6 years ago
I fear selling up might be the best option, financially you’ll be able to set your wealth up in A way that’s less reliant on tenants and the whims of a troubled marketplace.
Mental health wise it may also save you some grief.
Member Since July 2018 - Comments: 45
11:38 AM, 7th June 2020, About 6 years ago
BTL is dead, killed off by the likes of shelter, I had 9, now just 1, will be 0 soon.
Life is too short for such hassle, and such low returns. There are much better opportunities out there, I sold up and put money into housebuilders, no hassle, better safe returns. Best decision I have ever made.