What to do about tenants?

theartfullodger

Grotbagssister said:

What to do about tenants?

We have a property which is rented out on a 12 month contract which comes to an end in June. The agents served notice to the tenants a few weeks ago to inform them the tenancy will not be renewed and they need to leave on or before the end of tenancy.

No, tenants do not need to move out just because fixed term ends.  It continues, forever, as periodic unless tenant chooses to go or landlord& court&bailiffs evict - that usually 5-6 months.

Currently no evictions through court for 3 months.  But can see no reason s21 and/or s8 notices can be served.

But s21 and s8 do not end a tenancy nor compel a tenant to leave.

I would not trust an agent to get service & notice correct.

Artful: Landlord since 2000

Grotbagssister

Thanks for all your comments. 

The tenants can not afford to buy the house, even at a knock down price. 

We have a buyer lined up but they do not want to be a landlord so we need the tenants to leave at the end of the 12 month tenancy agreement. 

We are on a very sad timeline which is pushing us to get things moving ASAP, we need a home that is suitable for our family and our changing needs. 

Our understanding was that evictions cannot take place due to non payment of rent at this time due to Corona. As this is not the issue here we hoped that if they did refuse to move out we would still be able to proceed? 

I have asked the agency to send me the documents so I can check them, I know that getting this right is crucial. 

We already rent the house over £150 a month less than market value to them as they seemed nice and trustworthy. A young couple starting out. 

Renting this house was not a money making exercise for us so it would smart to have to financially incentivise them to follow what they signed up to do but it is something we will consider. 

Thanks for the comments and ideas. 

Grotbagssister

@artfulodgertheartfullodger said:

Grotbagssister said:

What to do about tenants?

We have a property which is rented out on a 12 month contract which comes to an end in June. The agents served notice to the tenants a few weeks ago to inform them the tenancy will not be renewed and they need to leave on or before the end of tenancy.

No, tenants do not need to move out just because fixed term ends.  It continues, forever, as periodic unless tenant chooses to go or landlord& court&bailiffs evict - that usually 5-6 months.

Currently no evictions through court for 3 months.  But can see no reason s21 and/or s8 notices can be served.

But s21 and s8 do not end a tenancy nor compel a tenant to leave.

I would not trust an agent to get service & notice correct.

Artful: Landlord since 2000

Hi Artful, 
do you mean you can’t see a reason why the S21 and S8 CANT be served at this time? I am a little confused. I appreciate your knowledge so I want to be sure. Thanks 

AdrianC

Grotbagssister said:

Our understanding was that evictions cannot take place due to non payment of rent at this time due to Corona. As this is not the issue here we hoped that if they did refuse to move out we would still be able to proceed? 

No, it's wider than that. NO possession proceedings will be accepted by the courts, under any circumstances. That's initially for three months from Friday - but may well be renewed, depending on circumstances at the time.

Sure, you can issue notice for them to vacate at the end of the fixed term of their tenancy, June. But if they don't... then you can't start proceedings against them until that restriction is lifted. Even then, it will be several months before you can guarantee getting possession, even in normal circumstances. And then you have to consider whether work will be needed on the property before the sale can progress. Always assuming your "lined-up" buyer is happy to proceed.

Slithery

Grotbagssister said:

The agents served notice to the tenants a few weeks ago to inform them the tenancy will not be renewed and they need to leave on or before the end of tenancy. 

That's not how tenancies work.

You or your agents have no legal right to end the tenancy, until either the tenants wish to leave or a court orders their eviction the tenancy continues indefinitely.

In usual times this can take around 6 months from the date that you issue them with an S21 but due to Covid the government has stopped all courts from granting evictions for at least the next 3 months.

Long story short, if you want them out before the end of the year you're going to have to pay them whatever they ask for to quit the tenancy early.

greatcrested

Grotbagssister said:

@artfulodgertheartfullodger said:

Grotbagssister said:

What to do about tenants?

We have a property which is rented out on a 12 month contract which comes to an end in June. The agents served notice to the tenants a few weeks ago to inform them the tenancy will not be renewed and they need to leave on or before the end of tenancy.

No, tenants do not need to move out just because fixed term ends.  It continues, forever, as periodic unless tenant chooses to go or landlord& court&bailiffs evict - that usually 5-6 months.

Currently no evictions through court for 3 months.  But can see no reason s21 and/or s8 notices can be served.

But s21 and s8 do not end a tenancy nor compel a tenant to leave.

I would not trust an agent to get service & notice correct.

Artful: Landlord since 2000

Hi Artful, 
do you mean you can’t see a reason why the S21 and S8 CANT be served at this time? I am a little confused. I appreciate your knowledge so I want to be sure. Thanks 

Yes that's what artful meant!

You can serve a S21 with an expiry date 2 months later (provided that's on or after the end of the fixed term), but if the tenants stay then you need to go to court. But as explained,the courts won't evict for the next 3 months

You can serve a S8 with an expiry date 2 weeks later provided you use one of the 17 'grounds', eg G8 rent arrears, or at a pinch G1.....

But again, the courts won't do anything now for 3 months.

We already rent the house over £150 a month less than market value to them as they seemed nice and trustworthy.

Well there's an option then! If they stay, and move to a periodic tenancy, you immediately serve a S13 Notice to increase the rent by £150 (or £200) pm. They can appeal, but the Tribunal will allow the increase (of £150) if you are right about market rents.

So either you get an increased income (which surely will help your situation somewhat, even if not resolve it), or maybe that will be the trigger for them to move especially if combined with an incentive payment.

silvercar

Serving S21 at least tells your tenants that you are serious about them moving out. Even if you cannot go to court to evict, it tells them that sooner or later they will have to move, so may encourage them to at least look for their next property. With a bit of luck, they may find somewhere and move on.

Grotbagssister

Thank you all for taking the time to reply and send references and ideas. It is hugely appreciated. I will update as we go. Thank you once again.