Tenant eviction ban is bad news for All

by Ranjan Bhattacharya

16:06 PM, 27th August 2020
About a month ago

Tenant eviction ban is bad news for All

Make Text Bigger
Tenant eviction ban is bad news for All

In this video below, I share my view on why the Government’s extension of the tenant eviction ban is bad news for both landlords and tenants.

I also share with you the Australian model for tenancy law and why it’s better.

We seem to be a fan of importing the Australian points-based immigration system.

Perhaps we should import and adopt their tenancy laws too?


Share this article

Twitter Facebook LinkedIn

Comments

Hardworking Landlord

8:10 AM, 28th August 2020
About a month ago

Its a good video and with many valid points. It really is time that the government starts to help both those that are in rented property and also the families and individuals that provide them, rather than worsening the crises by leaving this group without any support.

johncov

10:43 AM, 28th August 2020
About a month ago

I have decided that enough is enough and am selling up when possible. I have been investing in property since 2006 and have seen things go bad in a big way. The Government is determined to destroy small landlords and I personally have only lost money in property as the events happen. My so called legacy for my children has turned into a poisoned chalice and they do not want anything to do with it as they cannot take the hassle. I had 7 rental houses and will be reducing them as soon as they become available as I do not want to evict anyone from their homes. I have 2 houses that have been vandalised and a tenant who has gone to prison and I still cannot get my house back. I have to wait for the courts! How ridiculous can this get. I really feel like stopping paying anything and screw the consequences

Beaver

10:49 AM, 28th August 2020
About a month ago

Good video, I enjoyed it. I particularly enjoyed the bit about Polly Neat, the chief executive of Shelter, talking about greedy landlords when in reality with a salary of £150,000 a year she earns way more than 70% of landlords who, like me, have a small portfolio of 1-2 properties. (And of course made the point that Shelter is a charity, but doesn't house anybody).

The comments about the Australian system are interesting. What the video says is the Australian system aims to be neutral to tenants and landlords and if rent is in arrears by > 2 weeks then you can go through the repossession process.

So I would add the following comments. What you want from a tenant is pay the rent on time and in full, look after the property, get on with the neighbours. If they treat the property, your neighbours and you with respect then you should treat them with respect. And I support the idea that the Australian system aims to be neutral. Our system should be neutral.

So my present tenants have a young family they pay the rent on time and in full. They don't really look after the property but the amount of damage they are doing is just about tolerable as long as they don't upset the neighbours. Principle problem with the neighbours so far has been with the tenants not sorting their rubbish and putting the bins out (which I don't really understand because the tenants are paying for the service via their council tax) resulting in their waste being spread by vermin into neighbouring gardens.

So not all rosy, but tolerable and then you think about the Australian system and being able to repossess your property if rent is more than two weeks late.

My present tenants have a young family and at some point in the future I will need it back, probably to put a family member in. My intention is to give them way more notice because they have a young family (more than six months even before the present changes). But my concern about this would be, what if I were to give them 6 months to a year's notice of when I need the property back...would they then just stop paying? And if they stopped paying would I be able to get the property back? Or recover my debt? Would the Shelter-Landlord-Bashing "Charity" have sufficiently messed up the market by then to stop me being able to recover my property when I needed it?

Part of me says...2 weeks...you could be on holiday for 2 weeks...but then on the other hand the tenant could always pay the rent for that period up front (if they were UC recipients *and* you knew that the tenants were legally entitled to it the rent could just be paid direct). So from my point of view two weeks would be great because I could afford to say to a tenant that I'm going to need this property back in a year's time and that gives you a year or even 18 months to find somewhere else. And that would be better for a tenant with a young family because they would be able to plan.

Andrew broughton

13:31 PM, 28th August 2020
About a month ago

I wonder if it would work if tenants took out an insurance policy to pay the rent if they if they stopped paying and to cover any damage.

This could be adjusted if they paid on time etc similar to s no claims bonus and this information could be shared with other landlords making those with better scores more in demand and this could result in a lower rent.

The system could allow for people that are struggling and need extra help and this could be highlighted and support provided.

At the moment I feel all the cost and risponsabilty is on the landlord with the tenant having very little to no conciqence if they don't follow the tenancy agreement.

Carol

14:40 PM, 28th August 2020
About a month ago

The AST is supposed to be a legal contract but in my mind it is only the LL that has to abide by it. My biggest problem has been antisocial behaviour rather than non payment of rent. During lockdown, one of my tenants kept having his girlfriend and other friends around and eventually emptied the HMO of good tenants who were fed up that I could not do anything about it. The tenant put 2 fingers up to me and anyone else who challenged him. Until I can get him out I cannot put other tenants in as he is abusive towards them. I think the stress will kill me before COVID does. I have had enough. I am selling up this and all my other properties making 30 tenants homeless as soon as I can. I am a good , honest LL but the risks are too high. Another tenant like this would bankrupt me.

Mick Roberts

16:11 PM, 28th August 2020
About a month ago

Brilliant insight into the job mobility needs houses.
And all the other stuff said in a clear concise way, unlike me who knows it, but rattles on.

Some of u know, some may not, I'm biggest HB Benefit Landlord in Nottingham.
In past 15 + years or so, there have only been a few of us that have took the benefit tenants in Nottingham.
I'm not taking Benefit tenants any more. My colleagues are being much more selective.
If we saying & doing that, then what hope is there for any non super squeaky clean Credit check Letting agent tenants.
Benefit tenants are struggling getting anywhere.

I'm left with majority great benefit tenants after bad uns have had to go cause of Licensing, but even my good ones, I would like them to have a choice to leave in the future, so I can slow down, retire, leave with agent. but my current lot just cannot get anywhere. And the ones asking me-previous Benefit tenants-Who want to come back, they starting to know that Letting Agents/Landlords aren't taking Benefit tenants any more, just that now they not being told the reason.
So Shelters victory in getting it law or regs whatever that Landlords can't refuse benefit tenants any more is absolute Codswallop, Landlord still refusing, in fact refusing more since & cause of that Shelter victory, just now Landlords aren't giving the tenants a reason, completely wasting the tenants time.

BobG

16:23 PM, 28th August 2020
About a month ago

Sorry to hear the bad experiences. I still have a positive approach to renting property and for me the low interest rates over the last few years have made it very attractive. My first flip in the 80s was at 19% overdraft rate, mainly due to lack of suitable alternatives.
The secret is in selecting a good tenant and getting credit checks. I am happy with any type of tenant and have a number of benefit tenants, some for fifteen yeras. I am not a fan of UC and do not like the DWP reluctance to pay the landlord direct, even when the tenant is in arrears.
I do have bad experiences such as last month a tenant left and when we went in the next day found it was a cannabis factory with two skip loads of rubbish, and a ton of soil in the basement. The guy who cleaned it out said he needed a break as he was getting high! The Letting Agent clearly hadn't been doing a proper job with inspections. We got organised and did a refurb, new kitchen, bathroom, new blinds and decoration.
We turned it around and rented it in less than a month using a new agent and at £75 more per month. Lost time one month. Bought at auction, the capital value of the property has more than doubled in six years and it has always had a positive cash flow after mortgage and other payments.
Covid has presented problems but again using lone working in properties for refurbishment and posting video viewings I have managed to rent a number of empty properties.
So I do accept property has its problems, but I am still a big fan!

zhorik

7:36 AM, 29th August 2020
About a month ago

the australian system is wrong here. if one gets made unemployed on low income, it will take far longer than 14 days for them to get housing benefit. The time is too short. and wht if rent is paid monthly? Nonpayment of rent is ok but if the tenant has applied for Housing benefit why should they be evicted. what happens if the landlord goes to court and by the time it is heard, the council has paid the money? Can they still be evicted? what is the Australian position on anti-social behaviour etc. or a tenant subletting breaking the tenancy agreement.

Simon Lever

12:02 PM, 29th August 2020
About a month ago

Reply to the comment left by Carol at 28/08/2020 - 14:40
Hi Carol
Maybe you need to find a bunch of friendly "likely lads" from some rough area locally and let the other rooms in the property to them.
I am sure they would sort your problem tenant out!
(Tounge in cheek but it is a solution!!!!!)

Liz Buckland

20:53 PM, 29th August 2020
About a month ago

Such sense spoken in the video, with an extensive knowledge of the market and its problems. Excellent.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Agency request ICO registration for copy of tenancy?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More