Additional Unauthorised Occupants

Additional Unauthorised Occupants

13:06 PM, 18th June 2015, About 9 years ago 13

Text Size

I am a new Landlord having recently inherited some properties from my father. My dad passed away suddenly without handing over to me, so I am having to learn quickly. I have read a lot of books and have done lots of research, but have little real experience. I am hoping someone can help me with the following situation that I have:- Additional Unauthorised Occupants

I own a pair of semi’s. In one semi lives the daughter, husband and son. Next door lives the elderly mother (85) on her own. I collect the rent from my elderly tenant every month. She often asks me to hold on to the cheque for a few days before putting it in. I think she is living hand to mouth, so I try to help and usually put the cheque in a week later.

Towards the end of last year I noticed my tenants health deteriorate significantly. I also noticed the presence of another family member in the house whenever I called to collect the rent. When I asked my tenant she told me it was her granddaughter who was visiting, due to her own ill health. I didn’t think anything of it to start with, but a recent property inspection revealed she is living with my tenant along with her boyfriend and 5 year old autistic daughter. Her mum (who lives next door) told me she had recently left her rented accommodation because she wants to live close to her mum and she was told a house up the street would be coming up for rent soon.

A couple of months ago the rent cheque bounced again so I sent a standard letter asking for immediate payment and requested all future rent payments be sent by standing order. My tenant rang me and told me she couldn’t possibly pay it by standing order as she doesn’t get her pension and housing allowance on the same day each month. I reluctantly agreed to let her continue to pay it by cheque, but the cheque bounced again last month.

Last week, I received a telephone call from her daughter saying she was trying to sort out her mums’s finances and told me her husband would send the next rent payment to my bank by BACS today. I agreed this would be okay and check on line today. The rent has been received, but not by the tenant’s Son-in-law as agreed, but by her grand-daughter (the person living with her at the moment). I am concerned this payment could enable her granddaughter to make a claim to have a formal tenancy. Has this created a tenancy agreement?

I believe she has given up her property in the hope that she can live in her grandma’s house if something happens to her.

Should I send the money back?

Please advise what you think I should I do?

Thank you

Helen


Share This Article


Comments

Rose

10:20 AM, 21st June 2015, About 9 years ago

Reply to the comment left by "Alan Loughlin" at "20/06/2015 - 17:18":

What is HB?
Helen

Alan Loughlin

12:44 PM, 21st June 2015, About 9 years ago

housing benefit.

AnthonyJames

23:45 PM, 25th June 2015, About 9 years ago

Reply to the comment left by "Helen " at "20/06/2015 - 18:18":

Helen,

Sorry for the delay in replying. I think you need to do the same thing for the tenant next door as well. As a landlord I would be seriously concerned by all these people coming and going, and it not being clear who formally lives at the house and who is "just visiting". There is a danger that with the daughter in one house and the mother next door, the extended family will start to adopt an "open door" attitude to the properties and move in and out as they please and as their personal and employment situations change. The women may adopt a live-and-let-live, boys-will-be-boys attitude and overlook any misbehaviour, but you will be the one most affected if the neighbours start to complain, the properties start to suffer damage, and the rent cheques become intermittent.

My instinct would be to nip this in the bud and make it very clear that you cannot have people coming and going like this, otherwise you will have to give them notice and seek other tenants. You need new ASTs, a clear status for the temporary occupants, a deposit, payment of rent in advance by bank transfer, and credit checks and guarantors for everyone except the elderly mother and her daughter.

If the granddaughter and partner are on benefits, are they receiving housing benefit and if so, on which property? It wouldn't surprise me if they are currently claiming HB on their last house, having failed to declare their change of address, whilst paying no rent to you. This could all get very messy once the HB authorities find out - they will want their money back, the daughter and partner will plead poverty and not pay a penny to you, and the grandmother and mother could close ranks and react against you too, withholding their rent as well, and so on . . .

None of this is easy, so if you are nervous and suspect you may find it hard to be firm, it may help to ask a friend or family member to accompany you to the meetings, to act as moral support and witness.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now