The ethics vs financial realities of paying a tenant to leave?

What does RRO means?

My tenant stopped paying at the start of lockdown. He was earning good money, but was simply feckless! He knew I couldn’t evict him, and also played every card he could; covid, mental health… He said he wasn’t receiving housing benefit, but was. After 5 months, I offered to clear his debt if he left immediately without damage. He didn’t even acknowledge my offer, which was reiterated by my agent when they served the S8. Still nothing. It took 16 months to get my possession and payment order, and I doubt if it will be any quicker today. He finally left, but as he was self-employed, he had no employer I could to for an attachment. I could have obtained a CCJ, but I wouldn’t have got anything. I just needed to move on, and sold up ASAP.

Today, there is very little availability out there, and rents have increased. I can’t see why he would want to move. The danger is S21 will be ended and another eviction ban will be announced. My advice is issue a S21 immediately [with a view to selling!].

Reply to the comment left by Jerry Stone at 16/11/2022 – 16:03
Rent repayment order.

Reply to the comment left by Jerry Stone at 16/11/2022 – 16:03
Jerry,
Take it from those that know, – you’ll be glad you don’t know what an RRO is 😉
( a Years free – refunded rent, basically )

Reply to the comment left by Fiona at 16/11/2022 – 16:57
Thank you.
Interesting, every day is a school day. I was not aware of that legislation but then I don’t deal with HMO’s.

I’ve paid a tenant to leave. You have to be careful of a few things:
1. Try to get them to broach the subject first, but if not, raise it carefully and obliquely. Keep it vague and theoretical. You don’t want to be accused of harassment.
2. You need a witness to the deed of surrender, which is signed when they’ve exited the front door with their bags. I used the witness as a go between to hold the cash, the document and the keys and to swap them once everything was done.
3. The amount will depend on the details of the case – the rent amount; how long they could remain not paying it; how realistic a threat to sue them for every penny would be really etc.

RRO = rent repayment order? Take a look at the Shelter’ site – the offer of money can be taken as a form of harassment !

No, you must not pay them off, it is so unprofessional to do so.

Serve a Section 8 and go through the process. Paying them off doesn’t prevent them doing it again to another Landlord and there is a good chance it makes you a bigger target for the next fraudster.

If the tenant asks for it, it is essentially extortion or blackmail and would be a criminal offence under the Theft Act.

Get a CCJ against them for the debt and continue to pursue them for ever more. Make it clear from the outset that you intend to do this and they might just back off.

All those that say they can’t afford the mortgage ‘cos the rent isn’t getting paid, or you just don’t want the hassle, well you probably shouldn’t be landlords in the first place. This is an every day risk for landlords and it should be tackled in a professional and legal manner

Reply to the comment left by Smiffy at 17/11/2022 – 10:41Gosh, how i disagree with Smiffy, serving section 8. We did once, but it took 4 months to get to court hearing. We won the court hearing, and the court said the tenant had to be out within 2 weeks. The tenant had not been present, then it took 2 months for the court to write to the tenant telling they had to be out within the 2 weeks… Luckily i persuaded the tenant to leave in the 2 weeks but we lost 2 years rent. Lesson learnt WE DO NOT HAVE A COURT EVICTION SYSTEM FIT FOR PURPOSE. So find another route. Anything. Pay them to go.. Other times I have persuaded 3 tenants to go if I write off the rent, and has worked, the worst was 5 months rent lost. No court used. (this all represents about one tenant n 100 by the way). We do not have an eviction system in this country that works, other tenants (3 others only) I have used section 21 mutually happily

I should say the the excellent Smiffy is right in principal, but the system does not work in practice