Posts with tag: rogue tenants

Average cost of evicting a rogue tenant revealed by London property agency

Published On: August 19, 2019 at 8:33 am

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Landlords face bills averaging over £30,000 for evicting rogue tenants, according to new research from Benham and Reeves.

The London property agency used Government and industry data to determine this average, and also found that landlords typically lose nine months’ worth of rent during the eviction process. This amounts to an average of £6,111. 

On top of this, they then have to fund repairs to any damage caused by the rogue tenants. The agency’s research highlights the following average costs for property repairs:

  • New kitchen: £8,000
  • Refitting a bathroom: £4,875
  • Redecorating: £2,900
  • New windows: £7,000

When it comes to legal fees, these average £3,000. This can total an overall bill of £31,886, during a worst-case scenario.

However, things are more dire in London. Property costs are higher, which leads to an increased average of £41,318. In prime central London, thought to be the capital’s biggest hotspot for rogue tenants, costs can reach to more than £50,000.

Marc von Grundherr, director of Benham and Reeves, said: “Rogue tenants are a landlord’s absolute worst nightmare, and apart from the stress and time consumed dealing with them, the financial impact can be crippling.

“We’re not talking about a bad apple that doesn’t pay rent for the last two months of a tenancy and leaves a dirty protest on their way out.

“We’re talking about serious criminal organisations that know the letter of the law and every trick in the book to prevent you from getting rid of them, including how to stall the court date for weeks on end and how to deter the bailiff through threats of violence when they finally do call.

“At the very least, you’ll have a dangerously overcrowded sub-let on your hands but more often than not it will be a brothel, workhouse or drug farm.

“We’re not kidding when we talk about the complete renovation and refurbishment of the property afterwards either, as they will take every single thing they can and destroy whatever is left.

“It’s an extremely deep-rooted issue that goes beyond the tenant, even as far as the bribery of the concierge, and so you really are fighting from day one to get them out.”

Landlords Warned about using Gumtree on Nightmare Tenants, Slum Landlords

Published On: March 15, 2017 at 9:38 am

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Landlords are being warned about using Gumtree ahead of tonight’s episode of Nightmare Tenants, Slum Landlords on Channel 5.

The second episode of the third series airs tonight (Wednesday 15th March) at 9pm on Channel 5. It explores the fallout one landlord faced after deciding to let her property through Gumtree.

Landlords Warned about using Gumtree on Nightmare Tenants, Slum Landlords

Landlords Warned about using Gumtree on Nightmare Tenants, Slum Landlords

Despite not knowing much about how Gumtree works, Vicki McNaught decided to list her property on the site, as it was a cheaper alternative to using a letting agent.

Initially, McNaught was delighted when a young professional moved into the flat, promising to look after the place. He boasted of a private eduction and his references showed off a great career in the City. But it didn’t take long before he stopped paying the rent.

Looking back, McNaught would do things very differently. She says: “We’ve learnt that bad tenants are more likely to target sites like Gumtree because they hope they will be subjected to fewer checks. In the future, we’d always go through an agent – although even this has no guarantee. It’s the law that needs to change to make landlords less vulnerable to unscrupulous tenants.”

Paul Shamplina, the Founder of Landlord Action and Brand Ambassador of Hamilton Fraser, who stars in the show, knows these situations all too well.

He comments on the case: “This guy is a serial bad tenant. He has been evicted previously after running up costs of £30,000 in unpaid rent and stolen furniture from an overseas landlord. In Vicky’s case, he used false references to secure the property.”

Shamplina wants the episode to act as a serious warning to landlords about using free classified websites, such as Gumtree, to advertise their property to let.

He says: “We’ve come across many similar cases in the past where we see serial bad tenants prey on less experienced landlords who let their properties on consumer websites. Unfortunately, the majority of these landlords are deceived by well-educated con artists. With absolutely nothing in place to safeguard landlords, they find themselves in all sorts of trouble.

“My advice would always be to use a credited letting agent who can let your property through the correct procedures and are up to date with all legislation in the private rented sector. However, for any landlords already using such sites, then you need to be careful. Ensure you have thorough referencing checks done and look out for the telltale signs of a serial bad tenant. For example, are you being rushed by the tenant for them to move in as soon as possible?”

Nightmare Tenants, Slum Landlords is a 12-part series on Channel 5. The programme delves into the dark side of the lettings market, showing the struggles landlords and tenants face on a daily basis.

Buy-to-Let Expert Paul Shamplina Back for Third Series of Nightmare Tenants, Slum Landlords

Published On: March 3, 2017 at 9:51 am

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Buy-to-let expert Paul Shamplina, the Founder of Landlord Action and a brand ambassador of Hamilton Fraser, is back for a third series of Nightmare Tenants, Slum Landlords.

Buy-to-Let Expert Paul Shamplina Back for Third Series of Nightmare Tenants, Slum Landlords

Buy-to-Let Expert Paul Shamplina Back for Third Series of Nightmare Tenants, Slum Landlords

The 12-part series starts this Sunday (5th March) on Channel 5. Once again, the programme will delve into the dark side of the buy-to-let sector, showing the complexities that landlords and tenants face on a daily basis.

The first episode, which starts at 8pm, highlights one lady’s desperate fight to win back the home she grew up in from a woman she once considered a family friend.

Wendy Rose, from Bristol, was forced to call in buy-to-let expert Shamplina to help evict her nightmare tenant, who didn’t pay the rent and owed almost £3,000.

Shamplina confirms that Wendy’s story concerns a common landlord issue – rent arrears: “Wendy’s mother was seriously ill and needed to be moved into a nursing home. A friend asked if she could rent the house, which Wendy was delighted about, as the rental income would help cover her mother’s care costs and the place would be looked after. Things didn’t quite go as expected for Wendy unfortunately, and she needed help to get her family friend evicted from her home.

“Renting to a friend or indeed a family member can cause problems if the correct procedures aren’t followed, like with any other tenant. Regardless of the relationship, landlords need to understand the risks upfront as well as their legal obligations, and have clear, methodical referencing in place.”

Commenting on the new series, the buy-to-let expert says: “This series sees me travelling up and down the country uncovering the struggles landlords are faced with when dealing with nightmare tenants, and vice versa in some cases. We also experience rogue letting agents – I even get locked in one of their offices!

“I believe this show really highlights the fact that there should be a centralised database that lists rogue tenants, in order to help safeguard landlords. It’s all well and good that the Government are trying to improve the industry by having a database of rogue landlords and letting agents available to local councils, but what about protection for landlords from bad tenants? Surely there needs to be similar safety measures in place for them also?”

Is it getting harder to evict rogue tenants?

Published On: December 16, 2016 at 10:00 am

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A property boss had warned that small administrative errors could see landlords stuck with nightmare tenants.

The majority of landlords and letting agents use Section 21 of the Housing Act 1998 to end tenancies in the event of damage to a property or other grounds.

Powerless

However, Ajay Jagota, director of sales and lettings firm KIS, feels that changes in the law-amended in the Deregulation Act 2015, could see property owners powerless to evict rogue tenants.

It is feared that possession claims are unlikely to fall should agents not put tenants’ deposits in authorised deposit schemes, within 30 days.

In addition, Jagota notes the importance of providing tenants with the prescribed information relating to their deposit within this allotted time-frame.

Mr Jagota noted: ‘I know people tend to start playing the world’s smallest violin when they hear about problems being faced by landlords, but these rules could see someone’s much-loved family home or pension jeopardised by tiny administrative errors.’[1]

‘Changes in the legal and taxation system mean that if you have any sort of investment in property, protecting that assets is a priority-not something you can do on the hoof,’ he continued.[1]

Is it getting harder to evict rogue tenants?

Is it getting harder to evict rogue tenants?

Reputable

Jagota went on to say: ‘Usually the answer is a reputable letting agent, but they aren’t necessarily legal experts and the rising number of failed Section 21 applications implies that what landlords really need to invest in is good insurance. That way when the worst happens they can get the experts in rapidly and affordably.’[1]

‘It’s clear at the moment that both agents and landlords are getting it wrong. If you’re a landlord and you don’t have the sophisticated insurance you need, you’re leaving yourself wide open. There’s also the matter of the impact on the wider community. It only takes one family to ruin a street or village, and most landlords want to be able to take action, not just to protect their investment but on the community’s behalf. This situation could leave them powerless to help because they forgot to give those tenants a leaflet they probably wouldn’t have read anyway.’[1]

Concluding, Mr Jagota observed: ‘The saddest thing is that deposits are a relic of a bygone age. There is absolutely no need for landlords or letting agents to be using them at all when there are significantly more effective insurance-based solutions available.’[1]

[1] http://www.propertyreporter.co.uk/landlords/why-is-it-getting-harder-to-get-rid-of-nightmare-tenants.html

 

Put rogue tenant list in Housing and Planning Bill-AIIC

Published On: April 27, 2016 at 11:49 am

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The Association of Independent Inventory Clerks (AIIC) has called for amendments to the Housing and Planning Bill, to address the issue of problem tenants.

With the ‘Bill already including features to tackle rogue landlords and letting agents, the AIIC is now calling for measures aimed at rooting out rogue tenants to be included.

Alterations

Proposals already existing in the Bill include those to both ban and fine criminal landlords and letting agents. What’s more, there are also proposals to introduce rent repayments orders and create a database of blacklisted agents and landlords.

It has been mooted than this blacklist will be created and maintained by local authorities, with them also having to apply for offenders to be included on this register.

Currently at the report stage, the Bill will have to pass through a third reading and consideration of amendments before finally reaching Royal Assent and becoming law.

Put rogue tenant list in Housing and Planning Bill-AIIC

Put rogue tenant list in Housing and Planning Bill-AIIC

Work to be done

Despite welcoming the measures aimed at rooting out so called rogue landlords, the AIIC said there is much more to be done to underline the problem of rogue tenants.

Patricia Barber, chair of the AIIC, stated, ‘we’re well aware that there are criminal landlords and letting agents out there and blacklisting them and banning them from letting property is a necessary step. That said, the measures in the Housing Bill are very one-sided and suggest that it is only landlords and agents that cause problems during tenancies. We know from experience that this is not true and I personally have come across many horror stories in my time where tenants have trashed a landlord’s property or refused to pay rent for long periods of time.’[1]

‘It would only be fair if troublesome tenants who repeatedly offend could be blacklisted in the same way as landlords or agents. The threat of being blacklisted or a fine would hopefully discourage a minority of tenants from misbehaving and help to improve the relationship between landlords, agents and tenants.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/4/housing-bill-should-also-include-rogue-tenants-list-says-aiic

Evictions Specialist Calls for Rogue Tenant Blacklist

Published On: January 5, 2016 at 9:24 am

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The Housing and Planning Bill is returning to the House of Commons today to be debated by politicians, following a Government consultation titled Tackling rogue landlords and improving the private rental sector.

The bill proposes introducing a blacklist of persistent rogue landlords and letting agents. In response to the plans, Paul Shamplina, the Founder of evictions firm Landlord Action, is calling for a similar list of persistent rogue tenants and for this to be made public.

Evictions Specialist Calls for Rogue Tenant Blacklist

Evictions Specialist Calls for Rogue Tenant Blacklist

Some of the key points in the consultation were: Introducing banning orders and civil penalties of up to £5,000 for rogue landlords; speeding up the repossessions process for abandoned properties; and compiling a rogue landlord and agent blacklist.

At present, it is proposed that the blacklist of landlords and agents would be made available to local authorities and central Government, allowing officials to keep track of those that have committed offences.

Shamplina, who was part of the consultation, is urging the Government to show greater equality within the private rental sector.

He argues that if there is a blacklist of rogue landlords and agents, this should also include agents that have multiple money judgements against them by landlords for non-payment of rent. He also believes that all private rental sector associations and redress schemes should put their banned members on the list. In addition, he thinks the list should include rogue tenants and that all of the information should be made available to the public.

He explains his opinion: “We are constantly hearing about rogue landlords and agents. But to address issues in the private rental sector, we should also consider rogue tenants.

“Last year, there were 161,000 possession claims issued in England and Wales. At present, there is no central database where possession orders with money claims are registered, as the courts do not recognise possession claims with arrears as a County Court Judgement. If they did, this information would show up on tenant referencing.

“At present, a rogue tenant can move from property to property running up rent arrears and it does not show up on referencing unless the landlord goes to additional expense of trying to enforce the money order. If we are to protect landlords at pre-let stage, in the same way we wish to protect tenants, this should also be made available.”

Shamplina continues: “The Government is clearly committed to improving standards in the PRS. One of the greatest challenges is finding a balance between supporting good landlords and agents, whilst cracking down on criminal activity without burdening the sector with unnecessary, expensive regulation.

“I believe that one of the best ways to do this is by giving the consumer – landlords and tenants – access to information; allowing them to have freedom of choice about who they rent from.”

Of those that responded to the Government consultation, 92% agreed that there should be a blacklist of persistent rogue landlords and agents. Shamplina believes that making this information available to the wider public will support reputable landlords and letting agents, and act as a deterrent.