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RPI : Landlord loses a year of rent
  News from the Residential Property Investor, the bi-monthly magazine for RLA members

other articles from the November / December 2005 issue

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Landlord loses a year of rent - November / December 2005

RLA MEMBER Chris Richardson has told of his difficulties in gaining possession after an experience with a ‘tenant from hell’ - and this was without having to go through any pre- court protocol.It has left him £8,000 out of pocket.

The case demonstrates the need to get wording on documents absolutely right. But Richardson, who lives in Harrogate but owns properties mostly in Leeds, said that he had not been helped by the fact that the tenant had been given advice by local housing officers as to how to continue living in the property for months without paying rent.

He said: "I bought a three- bed, back-to-back inner city property in Leeds with a sitting tenant. I bought it cheaply and my intention was to flip it, and place it back quickly on the market to make some money.

"However, after about three months the tenant stopped paying the rent. She was a single mother and working, not on housing benefits. She wanted a council house."

Richardson used a landlord recovery service to issue Section 8 and Section 21 notices to get the tenant to leave. However, he claims the tenant did not take these seriously: "They looked as though they were run off a home computer."

In court, the application to evict the tenant was rejected as some of the wording was wrong.

Richardson then went to solicitors to get new forms delivered into court. However, they failed to put an attachment of earnings on the papers.

Richardson eventually won judgment, but the tenant still would not move.

"Housing advisers were basically telling her, ‘You don’t have to go’, and advising her that if bailiffs did turn up, not to answer the door as the bailiffs would then have to go away to seek an order.

"Eventually, the tenant did go, doing a runner one weekend, just as I was on the point of instructing bailiffs."

Richardson has lost a year’s rent, also having had to pay £260 to the landlord recovery service. He faces a bill of £830 from the law firm but is contesting this

During the period of the tenant’s occupancy, Richardson was unable to get access to the property and could not issue his tenant with a gas safety certificate - a legal requirement. He has now abandoned his plans to re-sell the property and has gutted it, prior to repair and renovation in the new year.

An experienced full-time landlord with 23 houses and 48 flats, most of which he manages himself, he said: "This has been a real learning curve for me. In future, I will be issuing Section 21 notices at the start of every tenancy, which effectively gives notice to the tenant that I want the property back after six months."

He said he would advise all other landlords to do the same.

Chris Town, chairman of the RLA, comments: "Section 21(b) applies to a fixed-term tenancy, ie a six months assured shorthold tenancy. If the tenant defaults at the start of the tenancy, then 21(b) only comes into force at the end of the fixed term when you get automatic possession in the court.

"You can issue a Section 8 notice citing arrears as grounds two weeks after default. However, you can only apply for a hearing at court when the tenancy is at least two months in arrears.

"In practice, by the time you have got your court date the tenancy is probably coming to an end anyway.

"Another method you can use if the tenancy falls into arrears is to issue the section 8 and warn the tenant that if they fail to bring the rent up to date, you will start proceedings for recovery of the debt in the small claims court.

"This shows them that you mean business and they usually then pay or leave.

"The Assured Shorthold Tenancy agreement available on our website now comes complete with the right notice. This uses the new software launched in the last issue of RPI."


 

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