Should I be happy or worried about my tenant?

Should I be happy or worried about my tenant?

0:07 AM, 14th August 2024, About 2 months ago 10

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Hi, I was left a property around 3 years ago with a sitting tenant which I self manage.

In the 15 years the tenant has lived there, he has barely complained and always paid his rent on time.

In return, he has been left well alone and his rent is below the market value.

Unfortunately, he has let the property get into a poor condition and it would not be fit for anyone else to live in.

I’ve also had numerous reports of cannabis and that he is running a business from there.

His current rent is £600 per month, after a £30k refurbishment you could expect £995 per month

I have been gradually increasing his rent over the past 3 years, but it has caused a lot of kick back with the tenant.

My issue is I have no record of the tenancy agreement or deposit, and the tenant knows this.

Would you leave this tenant and be happy with the guaranteed income and no fuss, or would you consider passing to a management company with a view to eviction prior to Labour giving him more rights?

Thank you,

Dan


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Jason

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8:06 AM, 14th August 2024, About 2 months ago

From memory 15 years pre-dates the need for a registered deposit.

Be careful when you say “sitting tenant” unless you really mean “tenant in situ” they are different and a sitting tenant has more rights.

Firstly from a financial perspective look at your ROI currently then look at it with an extra £30k poured in with the new rent rate. Does it make financial sense? If it does they you might need to factor in eviction costs if the tenant needs to be moved on does it still make sense to pursuit this ROI?

Secondly if the tenant pays their rent and doesn’t give you any grief and you are creeping the rent up to market rate for the condition of the property then frankly what’s the issue? You are providing housing and get a reasonable ROI with what sounds like a good tenant.

Finally yours and your predecessor biggest mistake is neglect; you should always creep rent with the market and keep on top of maintenance and inspections. Quickly investigate any complaints and get on top of paperwork especially missing pieces.

Personally i would do the refurb after the tenant moves out on their own accord unless of course your loosing money or your ROI is low.

DPT

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11:43 AM, 14th August 2024, About 2 months ago

It sounds as though s21 may not be an option and you may struggle to evict the tenant on fault based grounds. It would be easy for the tenant to show disrepair. I suggest you start with an assessment of the current condition of the property after reading through the HHSRS requirements and determine what must be done now whilst the tenant is living there.

Blodwyn

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12:44 PM, 14th August 2024, About 2 months ago

Why not consult a really experienced L&T lawyer (PPTY 18 suggest if not in such as Brighton when ODT Sols?) for legal realities, then have a chat with long term tenant and discuss best way forward? No need for a war when peace is better value?

Reluctant Landlord

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12:52 PM, 14th August 2024, About 2 months ago

offer him a new 6mth AST fixed at current rent with no deposit to be held. Tell him you want to update the flat while he is still in there. Make him believe you just want to do the place up a bit, update it and still keep him there because he has been a good tenant to date and always pays on time.

If you have only had reports of weed etc then he probably is not aware that you know if indeed there is something going on. Get people in to measure up for things etc to give quotes so it all looks like you are doing what you say and you can see for yourself what is happening in there.

Serve him all the necessary docs with the new AST..............and then issue S21 on month 4 while you still can!

Smiffy

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16:12 PM, 14th August 2024, About 2 months ago

Reply to the comment left by Reluctant Landlord at 14/08/2024 - 12:52
one problem with the new AST route might be the deposit. Was there one?, how much? If he claims he paid 3 months deposit can you prove otherwise?

I think "let sleeping dogs lie", but get on top of gas and electrical certificates, and sort out any structural issues.

Reluctant Landlord

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16:23 PM, 14th August 2024, About 2 months ago

Reply to the comment left by Smiffy at 14/08/2024 - 16:12
Don't request a deposit with a new AST simple.

If T wants to claim a deposit was paid (and not deposited in a scheme IF it was a legal requirement at the time) as part of the previous AST obligation, then the onus is on T to prove a deposit was paid, when and how much, not the LL.

Zen

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17:02 PM, 14th August 2024, About 2 months ago

Reply to the comment left by Jason at 14/08/2024 - 08:06
I'm pretty sure the date for registering deposits started in 2007, which is 17 yes ago.

SimonP

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21:10 PM, 14th August 2024, About 2 months ago

"Your landlord must put your deposit in a government-approved tenancy deposit scheme (TDP) if you rent your home on an assured shorthold tenancy that started after 6 April 2007."

https://www.gov.uk/tenancy-deposit-protection#:~:text=Your%20landlord%20must%20put%20your,started%20after%206%20April%202007.

Rookie Landlord

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10:23 AM, 1st September 2024, About a month ago

Why has it taken you almost 3 years to start asking these questions? I would get professional help if I were you. It sounds like you need it. Also this house is your asset, so take time and effort to update it.

Natty

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18:27 PM, 30th September 2024, About A week ago

Be careful of the tenant. I had a similar tenant for 15 years who wasn't particularly looking after the place i.e. untidy, unclean and smoking in the property but was an excellent payer always paying on time and paid any rental increases and only informing me about essential repairs. I kidded myself thinking I would just need to get an end of tenancy deep clean using his deposit and a full redecoration on leaving the property. He turned into a nightmare and got mental illness by blocking the toilet, damage to kitchen and a mice infestation and expecting me to pay to fix it. I managed to get him out on a S21 and luckily a family member took him in. It cost me £12k for a full refurbishment and the property is now on the market for sale. If Labour abolishes the S21 there is no way to get rid of this type of tenant.

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