This is Part Two of a series of three Blogs where we look at dealing with Tenants and Tenancies that have perhaps turned sour. In Part 1 we looked at avoiding problems. In this Blog we look at practical solutions when problems present themselves.
You have picked a lovely tenant and all is going well, then suddenly there is a problem. What then? In these circumstances tenants usually fall into three categories. They are either mad, sad or bad. How they are depends on the solution.
You have picked a lovely tenant and all is going well, then suddenly there is a problem. What then? In these circumstances tenants usually fall into three categories. They are either mad, sad or bad. How they are depends on the solution.
The Mad Tenant
The Sad Tenant
Tenants
and tenancies do not usually start off with things going wrong. The most common
trigger for this is some sort of personal or family trauma. Losing a job, a
failed marriage, an illness or bereavement are all part of life. Your tenant
will be affected by it and either the care of a property or failure to pay the
rent maybe symptom of the trauma.
Get to know your tenant. Check on
them with a quick phone call once a month. Formally inspect the property within
the first six weeks and every three to four months after this. I'm not
suggesting be best buddies but be communicative, show them a human side, show
them that you care and you may find that this is reciprocated in a time of
stress and trauma. If they can’t pay and you value the tenant, then agree a
payment plan. If the tenant is not looking after the property because they are
spending hours at the hospital? Knock £50 off a month and use this for the
occasional cleaner or gardener. I'm not suggesting for one minute you lose all
senses and forget you are in it to make money.
Make a benevolent gesture sure, but make a decision because it is
prudent to do so. Don't lose sight that your tenant is part of your investment
because he/ she is in your property.
Bad tenant: Is your
Tenant one of these? …….
A tenant that is a ‘rotten apple’ is the most
difficult kind. You have tried to resolve a problem. You have worked
with the tenant, perhaps shown empathy in the face of their personal adversity
and they throw it back in your face. What do you do then?
1. If the tenants are in financial difficulty offer to
release them from the contract early. Negotiate with them regarding their
deposit and cut your losses. What's the point of trying to pursue people with
no assets anyway?
2. You won't see this in the books and it can backfire but
you could pay them off to leave your property. You could verbally offer them
something and see their reaction. You could make them a without prejudice
offer. Make sure that you get them to
put it in writing that they intend to give up the tenancy.
Next Week: Paul Beevers Director of Rainbow Property and Landlord and Tenant Solicitor will go through some legal options if your tenancy has gone badly wrong.
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