Are tenants likely to refuse to leave if they cannot pay the rent anymore?

AdrianC

There's a difference between tenants can't pay the rent, and tenants won't pay the rent.

Can't - where are they going to go to? They'll have to wait for the court to grant possession before the local authority will do anything to provide alternate housing. And, at the moment, that means six months notice plus whatever wait for the courts once they start accepting claims.

Won't - they've proven they're mickey-taking chancers, so all bets are off.

MaryNB

vietnamica said:

MaryNB said:

You have a lot of reading up to do first.
https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

Unless they can find somewhere cheaper, or move in with family, it can take a lot of time and effort to get tenants to leave.
They may wait until after you issue a notice to end the tenancy. They may hold out longer and you'll have to go to court to get an eviction notice if they cannot afford to move elsewhere. This will take several months. 

If they cannot afford to rent privately they may require council housing. If they leave of their own free will, even if it's after you serve notice to end the tenancy, the council will deem them to have made themselves intentionally homeless and won't help them. Even if they feel bad about occupying your property without paying rent, it is entirely against their own interest to leave before the council issues an eviction notice and the bailiffs turn up at their door. 
In this scenario it can take several months to get rid on tenants after you issue a notice to end the tenancy.

Thank you so much. Your info is very helpful. I'm scared and have to think further.

So it seems that for those requiring council housing, they may even find a trick here: Unable to pay but refusing to leave, the tenants may hope to have a council house.

I think that's unfair if the tenants have found themselves on hard times and genuinely require council housing. If someone's circumstances change (get made redundant, can not longer work due to illness etc.) and they cannot afford to pay rent, they won't get any help from the council if they leave before the court issues an eviction notice and the bailiffs turn up. I know you will find it frustrating as a landlord but it's not their fault that they need to stay on. It's the council's policy and they're at the mercy of it.

Messiah9

Thanks for the insights. Sounds to me that it is very important to do a strong background check on someone before accepting them as a tenant, especially to understand how easily they can afford to pay the rent.
When I moved in as a private tenant, I believe I was just asked about my profession and what I do.

vietnamica

MaryNB said:

vietnamica said:

MaryNB said:

You have a lot of reading up to do first.
https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

Unless they can find somewhere cheaper, or move in with family, it can take a lot of time and effort to get tenants to leave.
They may wait until after you issue a notice to end the tenancy. They may hold out longer and you'll have to go to court to get an eviction notice if they cannot afford to move elsewhere. This will take several months. 

If they cannot afford to rent privately they may require council housing. If they leave of their own free will, even if it's after you serve notice to end the tenancy, the council will deem them to have made themselves intentionally homeless and won't help them. Even if they feel bad about occupying your property without paying rent, it is entirely against their own interest to leave before the council issues an eviction notice and the bailiffs turn up at their door. 
In this scenario it can take several months to get rid on tenants after you issue a notice to end the tenancy.

Thank you so much. Your info is very helpful. I'm scared and have to think further.

So it seems that for those requiring council housing, they may even find a trick here: Unable to pay but refusing to leave, the tenants may hope to have a council house.

I think that's unfair if the tenants have found themselves on hard times and genuinely require council housing. If someone's circumstances change (get made redundant, can not longer work due to illness etc.) and they cannot afford to pay rent, they won't get any help from the council if they leave before the court issues an eviction notice and the bailiffs turn up. I know you will find it frustrating as a landlord but it's not their fault that they need to stay on. It's the council's policy and they're at the mercy of it.

Thank you again. So do you think landlords should definitely buy an insurance policy for this scenario. Will it really protect us?

Iamdebtfree

vietnamica said:

This will be the first time we rent out our house, so my question is very basic.

In England, what is the chance of tenants refusing to leave when they cannot pay the rent anymore? I imagine decent people would leave anyway. Is that true? Or is it common that tenants will just stay in your house even when they cannot pay the rent anymore?

Thank you

Leave..to go where, exactly?

Are we talking chancers who'll do anything to get out of paying what's due or people who truly are destitute?

Teens who have spent a few months playing grown -ups and realised it wasn't all that cool after all?

Pensioners who have nothing but state pittance to their name?

There are so many different scenarios applicable here.

MaryNB

vietnamica said:

MaryNB said:

vietnamica said:

MaryNB said:

You have a lot of reading up to do first.
https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

Unless they can find somewhere cheaper, or move in with family, it can take a lot of time and effort to get tenants to leave.
They may wait until after you issue a notice to end the tenancy. They may hold out longer and you'll have to go to court to get an eviction notice if they cannot afford to move elsewhere. This will take several months. 

If they cannot afford to rent privately they may require council housing. If they leave of their own free will, even if it's after you serve notice to end the tenancy, the council will deem them to have made themselves intentionally homeless and won't help them. Even if they feel bad about occupying your property without paying rent, it is entirely against their own interest to leave before the council issues an eviction notice and the bailiffs turn up at their door. 
In this scenario it can take several months to get rid on tenants after you issue a notice to end the tenancy.

Thank you so much. Your info is very helpful. I'm scared and have to think further.

So it seems that for those requiring council housing, they may even find a trick here: Unable to pay but refusing to leave, the tenants may hope to have a council house.

I think that's unfair if the tenants have found themselves on hard times and genuinely require council housing. If someone's circumstances change (get made redundant, can not longer work due to illness etc.) and they cannot afford to pay rent, they won't get any help from the council if they leave before the court issues an eviction notice and the bailiffs turn up. I know you will find it frustrating as a landlord but it's not their fault that they need to stay on. It's the council's policy and they're at the mercy of it.

Thank you again. So do you think landlords should definitely buy an insurance policy for this scenario. Will it really protect us?

I'm a tenant, not a landlord so cannot help you with insurance policies for landlords.

As a tenant I will say you need to do a serious amount of research before you even get to the point of considering insurance. It's unfair on future tenants for you to become a landlord without fully understanding what you are getting into. You have a huge influence on their living situation and can make it very stressful for them if you become a landlord without doing your due diligence. 

greatcrested

Have you now read all the links I provided earlier?

Before asking further questions, take the time to learn as much as possible about letting property.

And join a specialist website like Landlordzone.

And join a landlord's association like RNLA.

vietnamica

greatcrested said:

Have you now read all the links I provided earlier?

Before asking further questions, take the time to learn as much as possible about letting property.

And join a specialist website like Landlordzone.

And join a landlord's association like RNLA.

Thank you so much. The info you provided is comprehensive. I am thinking about joing the RNLA.

Thrugelmir

Messiah9 said:

Thanks for the insights. Sounds to me that it is very important to do a strong background check on someone before accepting them as a tenant, especially to understand how easily they can afford to pay the rent.
When I moved in as a private tenant, I believe I was just asked about my profession and what I do.

Unfortunately in business you have to be prepared for the worst. Appearances can be very deceptive. 

AnotherJoe

vietnamica said:

This will be the first time we rent out our house, so my question is very basic.

In England, what is the chance of tenants refusing to leave when they cannot pay the rent anymore? I imagine decent people would leave anyway. Is that true? Or is it common that tenants will just stay in your house even when they cannot pay the rent anymore?

Thank you

Simple answer is absolutely. They are pretty much forced to if they want to get council accommodation.

More complex answer is "why are you letting your house out"? Is this temporary whilst you are away a year or two, or a business venture? If the latter, IMNSHO the "letting out properties for easy profit"  ship sailed years ago.