Any private landlords out there?

[crazy about cars]

I'm new to the landlord business but have a query. I currently let my property out and it is managed by a well known local agent. This is just entering the 2nd year of being a landlord for myself.

The first tenants were very nice as they pay rent on time everytime and never caused any hassle. The new tenants however started complaining about every little thing (front door creaking...). I had to go out to talk to them after being advised by agent but so far everything has been ok.

After paying the deposit and the first month's rent now they have fallen behind on payments. This is just the first missed payments but it is getting into 2 weeks late. The agent has been helpful so far but I am just getting a little bit worried. I know I shouldn't be worried as legally I think I should have a comeback if something goes tits up but just want some feedback of other more experienced landlord.

Is the tenants do not pay, can I evict them? How many missed payments are the "norm" until action can be taken? Can the tenants claim "squatters rights" on me?

[crazy about cars]

Justayellowbadge said:

Should have been clarified in the tenancy agreement.

Did you read it, or just ok what the agents showed you?

It was a year ago so I can't remember clearly. AFAIK the agents never forwarded me any documentation when signing new tenants. All I got was invoices every month...

I will try to dig the agreement out again and will contact the agent if I have further concerns. She told me that the tenants apologised and "will look into it". I suppose with their full month deposit I should be that worried but after what I've been through today I just can't stop thinking about it! Been a rough day :S

[crazy about cars]

Davel said:

Well really, since you are using an agent to act for you, they should be handling this.

If they are late in paying rental at this stage, the signs are not good. Have they given a reason for non-payment?

You can't simply evict people on to the street and so you should be making the agent earn his/her fee by sorting it. - that's what you pay them for.

Eviction is really the last resort but I don't want to end up with a family claiming "squatter's rights" and staying for free. As for reasons, the agent told me "it's hard to get them on the phone" (they could really just drive to the property as its only a 10 min drive!) and "tenants say there's something wrong with the automated bank payments".

It's entering the 2nd week now as I normally get the payments on the last week each month (payment clears on the 1st week of the month for me). The agent says not to worry and all she can do is continue chasing payments. I think when pressed she said something about "just collecting the balance next month"... not sure if this is normal?

[crazy about cars]

MadMullah said:

but if they refuse to go then its civil courts i believe.

Ah well let's hope it won't head that way... I've already had a bad day as it is

[crazy about cars]

Davel said:

Don't rely on the deposit if they can't pay the rental - as you may well not be able to retain it.

The Agent is supposed to take the hassle out of the arrangement so chase them to deal with it on your behalf.

Thanks for the advice. Will do. As mentioned, had a good year last year but I guess this is one of the risks of being a landlord! I was thinking of stopping the services from the agents but glad I haven't.

[crazy about cars]

randlemarcus said:

It took them about 14 months to get rid.

[crazy about cars]

randlemarcus said:

Very experienced scum, well-versed in the ways of the housing benefits, and associated scummery. Ben Thomson and Claire Harwood - bow your heads in shame.

Hmm, tenants (as far as I'm aware) are not on benefits and have passed a "background check" by the agents. Hopefully this won't end up that way. I'm trying to tell myself I'm just being over paranoid at the moment but I really hope the payment comes through by the end of this week!

[crazy about cars]

Wow... a (not so) good eye opener to the world of being a landlord. I had to take a different route back from work today and stumbled upon the tenants (well 2 of them) driving the other way. I tried to make eye contact but he just looked away...

I really hope this is not the start of something horrible... I will call the agent again tomorrow and this time I'll be more assertive. They are paid around £150 a month so I am hoping for a better service than this!

[crazy about cars]

Thanks for all the helpful insights. As this is the first time of missed payments I will give it until the end of this week (latest I'm supposed to receive money in bank is usually Monday this week plus this is the first missed payment)and I will change my tone with the agent. I will most probably give her a call again later on to check on things.

I will definitely query about the new contract. The current tenant wanted to move is rather quickly so I wasn't updated about things until they have actually moved in!

As I'm rather inexperienced with this, what sort of questions should I ask the agent? I know it's partially my bad for not following up on paperwork but I don't want to say or do the wrong things. What I have in mind is to ask her about the new contract and if she has forwarded it to me and also for a deadline of payment and what action will she take if payment is not received by then.

[crazy about cars]

Rower said:

The tenancy agreement is the contract between the landlord and the tenant , all the agent does is to introduce the tenant and/or manage it.

So in other words if st hits the fan it's all on me? I'm starting to doubt if it's worth paying 10% + VAT to the agents now... They are very good in finding potential rents but so far the "management" bit is pants!

[crazy about cars]

Davel said:

For your 10%, the agent should be able to find you a creditworthy tenant and ensure the smooth running of the tenancy, including the collection of all rents.

You are paying her to remove you of all the hassle and so you should be expecting her to act for you.

If payment is late then she should be chasing it and not leaving it for you to do. This is what you pay her to do and, if she fails, then you may want to consider switching agents at the end of this tenancy, however this case may end up.

This is exactly what I'd expect as well. Background checks is quoted as part of the package. I was told checks were done on this tenant but have seen no documents. I've spoken to them though (had to go sort things out myself because they cannot arrange a simple thing like a plumber to go out and have a look!) and they do seem like nice people.

To be fair the agent did apologise and told me she will chase them up but never did mention a date - perhaps I should chase for this.

Anyway, I am hoping this is just some sort of clerical mistaken and not drawn into a long legal battle as I cannot afford that right now!

[crazy about cars]

mk1fan said:

http://www.amazon.co.uk/s/ref=nb_sb_noss_1?url=sea...

Being a Landlord is a business. Regardless of how you ended up becoming a Landlord, to ignore your responsibilities is naive and just increases the risks of problems. If things end up in Court then you'll [quite rightly] be expected to be an expert and the tenant a layman.

Another book on the reading list then... Great advice thanks!

Spoke to the agents and according to them it's 2 payments in arrears before they will serve a notice. I've asked what happens if the notice is ignore and the agent is very reluctant to answer that. Best I've got out of her is that they will do whatever they can in their powers but it will be up to me if I wish to take it further. She kept reasuring my that it could be an error with setting up the DD which to be fair could be true! We shall see...

[crazy about cars]

Asked for the TA and got sent a PDF copy. Looks pretty professional and it is signed as well (scanned PDF).

I'm trying not to think so much and hopefully everything will be sorted - now off to bind the agreement and have a good read!

[crazy about cars]

groak said:

Right now you don't know what's caused the problem. Once you do you'll know how best to solve it. Some agents are better at dealing with problems than others. But until they know WHY there's a problem, unless the tenants just leave or things normalise then it won't be getting sorted.

Every so often we look at rent guarantees. So far we've not been convinced and don't use them. We've also never once had to have a tenant removed by eviction, although on a handful of occasions we've had to scare them away by starting the process. Law is a bit like violence. Only as an extreme last resort. Remember, it's adversarial. So once you start it the 'relationship' (with the tenant) is gone.

There are THOUSANDS of potential problems. But equally there are thousands of available solutions. Most people are reasonable. Very few WANT a problem. OR want to cause one. But I've lost count of the number who need a bit of a hand solving them. Doesn't usually take much. Surely your agent can get to the bottom of it and sort it? Put it this way, is there something they CAN'T do that you could do? Once the tenants know you're there to help (if possible) rather than punish, you might be surprised how quickly it can get resolved. Do it soon, though. Because if it's repairable and is going to come down to a rent shortfall, you want to stop it as quickly as possible. A shortfall can always be made up. And remember, if you CAN sort it and DO sort it you'll greatly increase your tenants' respect for you AND enhance your reputation as a landlord in their circle of influence.

Courts are for people who can't sort out their own problems amongst themselves like reasonable people do. I'd advise avoiding them.

Sounds advice. As the agents are handling the matter and trying to find out why/when will the payment be made at the moment, I've decided not to approach the tenants yet. They seem to be nice family and (afaik) both their sons have a job (I know where their sons work and coincidently know their sons' manager).

One thing that I can't understand is how the agent only approach me this Monday when the payment should've been in their account on the 30th last month! No news today but I will call again on Friday but I think the tone from the agents are they can only keep chasing and will consider taking action only after 2 missed payments. That seems to tie in with the tenancy agreement too...

[crazy about cars]

Right, a question for any PHer who might happen to be a solicitor...

I've read the contract and it is between myself and the tenant. One of the clause in the contract states :

To pay interest on any payment of Rent not made as set out in the Main Terms of the Tenancy Agreement. Interest is payable from the date on which the Rent was due until the date on which the Rent is actually paid. The interest rate will be 3% above the Bank of England Base Rate.

To me this means that the tenants should pay interest for missed payments. I've emailed the agent responsible enquiring about this but so far haven't heard anything. I know sometimes whatever is written in the agreement will not be enforceable in the real world so I hope someone qualified could advise...

[crazy about cars]

spikeyhead said:

I'd forget about that for now, it's such a small amount it's almost irrelevant. What is relevant is why have they missed the payment. Go and ask them!

Should I approach them directly? I've been thinking of this as well but it looks a bit unprofessional if the agents are (supposedly) already chasing them?

[crazy about cars]

1point7bar said:

Your solicitor would.

I have a company solicitor but not sure if I should involve them in this matter. Should I get a solicitor to handle this? The agents so far have failed to reply to any written correspondence. WhenI call the agent I was told that they are "chasing them" and "it's only their first missed payment".

Legally speaking, what should I do now?

[crazy about cars]

1point7bar said:

Examine your options.
Do you really understand all of the paperwork?

Don't be afraid to ask a property solicitor.

I have read the tenancy agreement between the agent and the tenant and I've raised a few questions (one regarding a clause in the contract about interest on missed payments). Agents not keen to reply to me at the moment. I do not want to make things worse but would appreciate prompt payment.

Legally, what is the best thing I can do at the moment?

[crazy about cars]

1point7bar said:

Your paperwork is not available for my inspection, this disallows any further understanding.

I wou

Well played!

[crazy about cars]

Well contacted the agents for the latest news and told all they can do is chase. Apparently they cannot enforce the terms in the tenancy agreement and its up to me to sort this out with a solicitor.

So what's the point of signing a tenancy agreement then... So frustrated now ....