if a tenant is unco-operative, why will they move just because you say you are selling and use s8, if they wouldnt move when you use s8 for rent arrears instead? Either way they can refuse to move and you have to go through the courts to remove them. Telling them you’re using s8 and the grounds for selling doesnt mean you dont go through the courts - if they are clued up they’ll know even if a place is sold the tenancy doesnt end and they can stay - and as @tatemono says no buyer will take on a property with a bad tenant. Or does your strategy rely on their ignorance and the tenant wrongly assuming that if you are selling they will have to move?
I sort of get it as a strategy of not waiting till they stop paying and selling before they start non-payment and all the grief that involves tho, especially if you’ve had a place for a while so will make a profit on it anyway,
Owning 15 properties this is the new strategy. So as long as you’ve got the reserves to cover the empty one there’s nothing they can do about it if you want to sell under the new section 8. It’s a dream for landlords providing you’re in the position to cover the costs. Each time I get one out I release that much equity which more thsk covers the deposit for another property along with the stamp duty and legals. Even a new car !!!
Well - there’s nothing they can do.except stay, pay no rent, and wreck the property causing £000s damage which you may never recover. And refuse to allow any viewings. 4 months notice for section 8 ground 1A (sale of dwelling). If you are unlucky they never pay so you face 12months unpaid rent (ground 1a.notice cant expire in first 4 months). Then if they stay a further on average 8 months from application for possession to eviction. So 20months no rent plus legal costs and bailiffs costs plus costs of any damage caused. Plus stamp duty and legals for new place and for sale of old. And cost of void no rent once they have been evicted till you actually complete on sale (12-14 weeks say)
Do you use RGI and legal costs insurance to mitigate the risks?
Ah right … so you’ve never actually done this. That figures.
When you’ve done this, take a piece of paper and David240’s comprehensive list, and write down two figures: total cost in cash and total cost in time (which you can never get back). Then add the heading “This is what this tenant cost me”.
Pin that up in wherever you manage properties from as a reminder to choose your tenants more carefully.
Personally, I’ve got better things to do with both my time and money.
Contact a tracing agent and locate her. She may have moved on and the hospital is an excuse. Nationwide tracing. They can see if she has actively used her credit cards etc but you should speak to them directly
All I’m trying to do is point out there are other options. Of course it’s all dependent on your personal circumstances. I’ve not had a proper job since I was 46 and I’m 62 now. So this is my job and I do have the time and I do have the money. My main point being is the government have given T so many rights this is a new rule where you can actually regain possession. I look at it as a positive. If they want to spend money in court I’m happy to challenge them. I’ve done it under the old 21 where legal aid has been given to the T and they’ve lost. So the tax payer pays. Stay compliant and this enable people like me in particular with a portfolio of over 10 properties to take control of a T. I agree small investors is a different matter as they may be reliant on the rent. But I have all the time in the world and plenty of resource to take the time money and effort. I’m cashing out in 5 years and providing this new system is in place I’ll be getting rid. But it’s a job and it’s full time most of the time. It all depends on peoples personal circumstances. I’m a glass half full not half empty. I only hear the negatives in here never any positives. I see this (providing you’re fully compliant) as a plus for landlords in my position. Yeah take me to court if you can’t afford your own house at 40 the. You’ve gone somewhere wrong in your life so generally they rent because they’ve got nothing. This isn’t disagreeing with you it’s merely pointing out it can be done. A famous news presenter was talking about it and she’s putting the flags out she said she can’t wait until the new act comes in. So when people are only mentioning the negatives constantly it’s putting LL off the ladder. I see it as a positive. But as I say I can afford the time and in fact I enjoy the challenge. It sounds as if you’re arguing with me. I’m not arguing I’m just pointing out the facts
I think your circumstances are a little different from most - in your case you would be planning selling a property anyway at some point so using s8 selling ground to get poor tenants to leave before they becomes a serious problem makes more sense as you aren’t dependent on the income and you would be selling sooner or later anyway.
I’m not surprised your strategy has erm raised eyebrows tho…
As for positives not negatives - RRA has been very negatively portrayed amongst landlords fora and quite reasonably so - it adds to costs, makes eviction timescales longer (for rent arrears etc) and removes the most straightforward way to remove tenants (s21). For those without your resources it makes removing difficult tenants (rather than those in serious rent arrears) almost impossible unless you are willing to sell a property or move in. Which feels unfair. The new s8 set of grounds greatly reduces control over the property a LL owns compared with s21. Longer default notice periods of 2m not 1m mean moving more expensive for both tenants (longer overlaps) and LLs (longer voids). Pets are harder to refuse (costs wont be covered by security deposits based on previous evidence). End of fixed term contracts will (slightly) increase turover (most tenants stay multiple years anyway and many had periodic so only 1m notice anyway). S8 grounds mostly take longer than s21 (and it was already taking 8 months from application for possession to eviction) Extra costs from higher risk and more regulation will just be passed on to tenants
The positives for LLs are few - rogue LLs will be punished more heavily which is good for tenants and good LLs. S8 grounds for selling or for moving back in are more specific than previous s21. What other benefits can you identify?
Think govt could have been more balanced - eg a searchable database of tenants who have had rent arrears or damage claimed against them successfully through deposits schemes or in the courts, with the amounts, would be easy to set up and help make it difficult for serial rogue tenants.
