*Updated*Council billed me £6500 for work I didnt ask for? Rental house

travelchick

BigAunty wrote: »

EDIT - are you going to seek half the cost of the central heating installation from your ex and enforce this through the small claims court (if that's appropriate for the financial limit of that type of court action, I don't know the level)? Not sure if you'd win or not but if the judgement goes in your favour, as he's in the Army, it should be easy enough to get an attachment of earnings if he tries to wriggle out of it. The armed forces takes a dim view of debt.

I never thought of that! I would certainly do that because he wont even put his hand in his pocket to cover any of the repairs and replacements I have already done for the house

travelchick

BigAunty wrote: »

Did you have permission from the lender to rent out the property?

Yes when we brought the house it was to be for us when he got out of the army, it was listed as our preferred place of residence, so the mortgage company where fine with it.
They also send our statements to our own home addresses not the property

travelchick

Gigervamp wrote: »

Ring the tenant and ask her if the letters arrived there!

still no reply from her?

Gigervamp

If you think she's trying to avoid talking to you, you could try ringing her from another number. Could you borrow someone elses mobile to make the call? I say a mobile, because there won't be an area code come up.

BigAunty

travelchick wrote: »

I dont wish to evict her, I will simply enforce that she now pay the rent as per her tenancy agreement.

What I am going to do it contact a few rental companies as ask them to take on the tenancy then if she refuses to pay the difference in the benefits and the rent I will look to evict her. but that really is a last resort.

I think you need expert advice as to how you should enforce the actual rent after letting her underpay for so long, how you formally notify her of her obligation when you had a verbal agreement that contradicted this.

Is your tenant in any form of employment or fully on benefits? Check the local council website to identify what the maximum LHA rate is for the size of property she is entitled to (this depends on the age/sex of her children). The rate is entirely independent from the rent you charge and the size of the actual property itself. The Local Housing Allowance rate is simply based on her need (i.e. actual size requirements) and the area and her actual HB will take into account any employment income she has.

What is this LHA rate for her entitlement? Some say there is no point in setting rents far higher than the LHA rate as it simply means the tenant will get into arrears. Others say that some social groups, such as lone parents with multiple children, are able to pay a top up themselves between the rent and their HB because of the level of benefits they receive (unlike single unemployed people without dependents who might only be on £55 to £75 a week JSA and have to contribute towards their council tax too).

LHA rates are calculated at the 30th percentile, meaning they are set at the bottom cheapest third of market rents so typically HB claimants can usually only afford the less desirable properties in the less nicer parts of town. (Note that many people dispute that the LHA even covers the cheapest third of local rental properties, that it is far far lower).

Tenants on HB who get into arrears (it might be 1 or 2 months worth of rental payments, check the local council website) can have their HB diverted directly to the landlord if the landlord requests this to the council.

BigAunty

travelchick wrote: »

I never thought of that! I would certainly do that because he wont even put his hand in his pocket to cover any of the repairs and replacements I have already done for the house

I don't know your chances. If you are still negotiating a settlement, this type of activity will scupper it.

If you can't afford to take on the mortgage in your sole name due to your low employment income, the main option is to sell it. Use the equity you get from it as a deposit towards a smaller place or stick into your pension.

What is the likely equity in the property after CGT and legal fees, the cost of the central heating installation, perhaps also allowing post-tenant expenses, such as decorating, repairs and possibly replacement kitchen/bathroom (allow up to 10k?).

See the Capital Gains tax information on the HMRC website to work out your liability there. See Zoopla to see what local similar properties have sold for (i.e. don't bother looking at asking prices on Rightmove, just actual sold prices)

travelchick

BigAunty wrote: »

I think you need expert advice as to how you should enforce the actual rent after letting her underpay for so long, how you formally notify her of her obligation when you had a verbal agreement that contradicted this.

Is your tenant in any form of employment or fully on benefits? Check the local council website to identify what the maximum LHA rate is for the size of property she is entitled to (this depends on the age/sex of her children). The rate is entirely independent from the rent you charge and the size of the actual property itself. The Local Housing Allowance rate is simply based on her need (i.e. actual size requirements) and the area and her actual HB will take into account any employment income she has.

What is this LHA rate for her entitlement? Some say there is no point in setting rents far higher than the LHA rate as it simply means the tenant will get into arrears. Others say that some social groups, such as lone parents with multiple children, are able to pay a top up themselves between the rent and their HB because of the level of benefits they receive (unlike single unemployed people without dependents who might only be on £55 to £75 a week JSA and have to contribute towards their council tax too).

LHA rates are calculated at the 30th percentile, meaning they are set at the bottom cheapest third of market rents so typically HB claimants can usually only afford the less desirable properties in the less nicer parts of town. (Note that many people dispute that the LHA even covers the cheapest third of local rental properties, that it is far far lower).

Tenants on HB who get into arrears (it might be 1 or 2 months worth of rental payments, check the local council website) can have their HB diverted directly to the landlord if the landlord requests this to the council.

Thank you so much lots of things for me to think about here ill looking into it a bit more deeply I really appreciate you taking the time to write it all for me.

BigAunty

travelchick wrote: »

still no reply from her?

Just accept that contact with the council was probably initiated by her and she's not prepared to discuss the issue with you.

Note that a professional landlord (experienced, with knowledge of housing law) would keep all contact on a formal basis, by letter.

That way, it avoids the risk of getting into an argument and harassing a tenant (a criminal offence). See the Shelter website to understand the serious consequences of harassing a tenant.

You sound like a very inexperienced and unprofessional landlord who has fallen for a sob story and hasn't managed the letting to a proper standard (granted your tenant may have taken advantage of this).

You didn't ask for a deposit, you never enforced the actual rent, I assume you haven't drawn up an inventory nor checked the condition of the property on a regular basis so it actually could be quite squalid by now.

You now need to be more business like - manage it properly (perhaps via an agent), get a tenant that pays market rent or sell it.

So just stop ringing the tenant and put your energy into getting the tenancy managed professionally or sold with the consent of your ex, and and getting expert legal advice on whether you could successfully challenge the council charge if they did not follow proper procedures.

I think as it's clear the relationship has broken down with the tenant, and she's likely to resent a substantial increase in rent, you should consider stopping all personal contact with the tenant and getting a solicitor or Landlord Action to evict her, start with a fresh tenant who can afford the rent, who you don't know and who has been credit checked with previous landlord references taken up, etc.

of course, she may go off to the press to say 'my evil landlord who let me live in a freezing property and ignored a court order to improve the property has now evicted me' or she may go off to the council homelessness service and get a shiny new social housing property, thus being rewarded for not communicating tenancy issues with you.

Suggest you step back from speaking with the tenant and keep everything formal and business like. You are clearly an amateur landlord and without knowledge of your obligations and tenants rights, you can end up with a bigger mess (illegal eviction, tenant harassment, civil compensation claims and so forth).

travelchick

I know your right I've been very blasie about it all I guess it's been problem free for so long I just left it as is and now I've created a mess for myself to clean up.
I'm going to appeal on the councils desision because they did not follow the correct procedure in informing me there was a problem.
The cost for the central heating is only £4000 the rest is loads of charges fees and fines that they had to do it and find me and serve me serve me ect, I think it's unfair considering they have my address on file and served legal documents to the wrong address, I also think billing me for a land registry search is very wrong because someone was to lazy to see they already had my details.
Ill find out tomorrow why they installed central heating as its not a legal or inforcible item for a landlord to provide.
And will argue it all the way but I think it's all the extras I've been billed that's bothering me.

missbiggles1

travelchick wrote: »

I haven't as yet as the council letter arrived yesterday, I don't want to speak to my tenant as my current feeling is instead of coming to me and saying there's a problem, she's gone straight off and got the council to do this which has upset me because we have had good communication in the past, she clearly was aware this work was being done and didn't once contact me to say "just so you know"
If I'm wrong I don't want to go in there all accusations and upset without being armed with the true facts.

I live 4 hours drive from the house so I can't even pop in.
I'm at the place where I will inform her the rent has now gone upto £650 and she will be required to cover the difference or move out.
The rent she is currently owing (the bit between her benefits and her tenancy is approx £7000) so I do have the right to evict her as I can prove she's never paid it.

It's not a route I want to go down but she's been living in my 4 bed house for free for 6 odd years and has done this on the sly.

Is this the same property you posted about 5 years ago which had been empty for some time or do you have more than one BTL?

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