Tiny violins out - private landlord having trouble

[roarfeckingroarr]

I own a flat that I rent out because it no longer suits my needs to live there and I couldn't find a buyer without making a substantial loss during Covid (due to no private outdoor space).

I try to not be a dick - e.g. I charge under market rate, I don't increase the rent unless in between tenants, I get everything fixed as soon as I can (via management agency), I allow pets/children etc. All things that should be standard but too often are not.

Anyway, I have a tenant who is playing games. Every month for the last three she has had a problem paying the rent. First of all she wanted to move the payment date (fine, circs change, but she was a week after the agreed date), then she was late again, then she decided unilaterally she didn't have to pay because the boiler had broken and I couldn't get a new one installed over night. I reimbursed her for heaters to keep warm and had it replaced as soon as a reputable tradesman could install one - about a week in total. I get this isn't ideal and I offered a £100 discount as a goodwill gesture. She eventually paid.

I hate being a landlord and I am v shortly going on maternity leave with my second child so I need to sell especially as the income is now unreliable to use the equity to buy us a family home.

But I'm scared to put it on the market in case she takes that as free reign to stop paying altogether.

Does anyone have any advice that doesn't include "private landlords" and "scum of the earth" in the same sentence? I wouldn't expect her to let people traipse through her home at short notice and would hope to arrange maybe two open house mornings in Jan to minimise inconvenience - but I also expect her to stick to her side of the contract and pay the agreed rent during this time.

You need to serve her a section 21 and get her out then put it on the market, however she is unlikely to pay as soon as you serve her the notice, if she is struggling to pay now.

I also used to be an accidental landlord so recognise the stress. My flat ended up empty for 6 months with me paying the mortgage until it sold.

Has she actually paid full rent? Sounds like she hasn't

Does your fee to the management company not include insurance that covers failture to pay rent?

*failure

She doesn’t have to allow viewings.

You may be better off getting her out then putting it on the market, as if she doesn’t leave until she is evicted by court (which she is legally allowed to do, and may be encouraged to by the council or shelter) then you may end up losing your buyers anyway.

evict her and sell it empty.

How long is left on the contract? I would take advice from your agency and a solicitor rather than AIBU if I'm being honest. The advice you'll get on here is likely to be mixed at best

I agree with serving notice before listing.

I sold an accidental rental with a tenant. The council wouldn’t house her and told her to stay put until eviction or they found her housing. It delayed completion.

How long has she been there? You can't serve a S21 before 6 months and if on a fix term, to meet with the end of it.

Be prepared for a long battle, refusing visits (as it is her right to do) and not moving out until bailiff show up, which would take up to a year if not longer.

Your best bet is to offer say 25% reduction on rent fir allowing potential buyers in, collaborating with the agent etc...

Agree with all the comments above. I would serve her notice and then once she's left, put it on the market. When we wanted to do this, we also offered the tenants a payment for every week before the end of the notice period if they were willing to leave early. No obligation on them to leave early but might provide some goodwill?

I empathise- I'm in a similar situation as I also need to sell my house.

I feel absolutely awful about it but we have a double whammy of both our mortgages doubling at the same time. We are 'accidental' landlords as we had to move due to my partner losing his job and being unable to find another due to his age (60). We couldn't sell as we would have lost £6k in early repayment charges.

I'm also terrified that the tenant will stop paying as soon as we serve notice. The mortgage/insurance etc will come to more than the rental income so if we kept the house we would be subsidising the tenant which we can't afford to do- it's already about £200 a month below market rate.

Oh also good advice from PP - same sort of idea

Have you talked with your management agents or are they hopeless? Would they let your tenant know too early?

I think you need time to serve a Section 21. She will need time to find somewhere especially given you are charging under the market rate.

You sound a decent landlord.

Obvious question but do you have landlord's insurance? If so, wouldn't they cover rent if she stopped paying. I agree though that your best bet is to end the tenancy and then sell.

I'm another one saying go for an empty house which might give you time to paint/freshen up before selling.

Firstly you need to accept that you are not a dick for being a landlord. You didn’t set out to be in that position anyway, but even if you did, we’re in a free country where people can make their living as they choose within the law. I’m not a landlord btw, I just think that unless landlords are unscrupulous, then they are not automatically bad. Plus, rental properties are needed by people.

Anyway. You need to get her out, then charge the market rent. Have a letting agent manage the entire process so you do not communicate with the new tenant at all. Agree to repairs right away. You have tried to be kind/decent and you’re having the piss taken out of you. That is exactly how it is today in Britain. The pisstaker has smelt your kind nature and will never stop.

Evict her first.

The criticism should be of successive governments and housing.

(as an aside also check whether you will be liable to pay capital gains tax on selling it. )

Evict her you’ve been more than fair
could you possibly do air B and B till it’s sold

the only thing you can guarantee is she won’t co operate
if she doesn’t pay small claims after you’ve got rid of her doubt you’ll get any money but it will fuck her credit rating

You can't sell it and expect to do viewings with someone living there!

Definitely sell it empty if she is a tricky tenant. It will be very difficult to sell it with a tricky tenant in situ. I know from experience when I became an accidental landlord.

An open house with her in situ isn’t fair.

That is her home and her belongings. I had items trashed when a LL allowed just one viewing (child found a pen and scribbled over a few books and a sofa).

You need to sell/do viewing once she’s left. Otherwise it’s not really fair.

Op your tenant does not have to allow viewing legally even if it's in her contact. Serve her a section 21 and put house up for sale after she moved out

You might get more money if you evict her and then redecorate and stage’ the property. You’ll also have far more viewings and they’ll be much simpler to arrange. You need to make sure the flat is vacant in completion and having someone in there might put off a buyer.

Mine was on the market for months when tenanted but sold in ten days when spruced up.

You could try to sell it as tenant in situ to another landlord, although that may take even longer.

The way house prices are going I’d be expecting some sort of loss OP. Make sure you read up on your tenants rights etc so you don’t violate them during the eviction process. Also to manage your expectations in terms of timescales etc.

As others have said do you have insurance that would cover the rent not being paid? Just thinking of how you’d pay for court etc if it came to that.

Anyone sensible will not buy with a tenant in situ. I agree with selling it once the tenant has left.