Tenant damage during COVID times - Advice please

Jabei1

I have been renting out a property for over 10 years with no issues and around 5 sets of excellent tenants - until now. My current tenant moved in last October and soon afterwards my management company received a complaint about loud music and what sounded like dogs barking in the early hours. The agreement states no pets.
It's important and fair to note at this point that the tenant pays full rent (through a guarantor I think) each month with no issue.
The tenant said that his mother had become ill and he was looking after her dogs for her. My management company said there was nothing we could do, even with him breaking the pet terms of the agreement. We ended with agreeing that he would return the dogs as soon as his mother was better. There were no more complaints and no other news so I considered the case closed. 
In March he said he wanted to moved out at the end of his tenancy in April this year. As the time arrived, he said he hadn't been able to find anywhere else. Once again I was told that there was nothing we could do, couldn't evict him so we had to sign up for another 6 months. In the meantime, it was time for an inspection which had been delayed due to lockdown. This was finally completed in May and was pretty horrific.

It turns out there are actually 4 large dogs in the house (so noisy that the lady carrying out the inspection was scared to go into the lounge where they were being kept). They have ripped up the carpet in the hall, smashed 5 of the 8 stair bannisters. The house smells very much of dog and dog poo. Hopefully not connected, the toilet flush handle has been smashed, the shower ripped from the wall, the ceramic hob on the cooker is smashed & kitchen doors are hanging off. The lounge and garden weren't inspected but I have to assume there is damage & also extensive garden works required.

Obviously the inventory and move-in report will show that all of this damage is down to him. The issue I have is that the costs of new carpet, woodwork for stairway, cooker, toilet, shower, redecoration, kitchen furniture will nowhere near be covered by his deposit which was £950. I have never taken anyone to court before so find that a little daunting if it comes to it. The management company accept no responsibility and I have a fear (although I haven't checked yet) that my insurance won't cover what I consider malicious damage because it is mainly the result of a situation (dogs) that should've been nipped in the bud 6 months ago.

Apologies for the length of the post but I was wondering if anyone else was in a similar situation due to landlord COVID restrictions and how it panned out? I'm all for protection for tenants during these tough times but it doesn't seem too fair if the landlord has zero protection. I recognise this is bad luck with a bad tenant but surely the management company must bear some responsibility if they vet the tenant initially and charge me a relatively large percentage to "manage" the property yet remain totally powerless in case of flagrant breaking of the tenancy agreement,

pinkshoes

I assume after the inspection you didnt sign up for a other 6 months?!?!?!

Ultimately the property needs to be returned in the condition it was let, and until the tenant leaves the condition is irrelevant. 

How old are the carpets, hob etc... you can claim the cost but not for betterment so if the carpets were 8 years old then they were due to be replaced anyway.

Have you issued an eviction notice? I think an S21 is currently 6 months but issue this ASAP then reissue it if the government reduces the term of it.

Do you have an address for the guarantor? Do they have money? You might have to take the guarantor to court.

I would start by writing to the tenant and guarantor, listing the damage at the inspection, and politely reminding them that the property needs to be returned at the end of their tenancy in the same condition they let it in, and the cost if doing so is their responsibility. 

You did do a signed itemized inventory when they moved in with photos????

Jenni_D

I seem to recall reading that an S21 is now 4 months as of 1st June?

HampshireH

Jabei1 said:

I have been renting out a property for over 10 years with no issues and around 5 sets of excellent tenants - until now. My current tenant moved in last October and soon afterwards my management company received a complaint about loud music and what sounded like dogs barking in the early hours. The agreement states no pets.
It's important and fair to note at this point that the tenant pays full rent (through a guarantor I think) each month with no issue.
The tenant said that his mother had become ill and he was looking after her dogs for her. My management company said there was nothing we could do, even with him breaking the pet terms of the agreement. We ended with agreeing that he would return the dogs as soon as his mother was better. There were no more complaints and no other news so I considered the case closed. 
In March he said he wanted to moved out at the end of his tenancy in April this year. As the time arrived, he said he hadn't been able to find anywhere else. Once again I was told that there was nothing we could do, couldn't evict him so we had to sign up for another 6 months. In the meantime, it was time for an inspection which had been delayed due to lockdown. This was finally completed in May and was pretty horrific.

It turns out there are actually 4 large dogs in the house (so noisy that the lady carrying out the inspection was scared to go into the lounge where they were being kept). They have ripped up the carpet in the hall, smashed 5 of the 8 stair bannisters. The house smells very much of dog and dog poo. Hopefully not connected, the toilet flush handle has been smashed, the shower ripped from the wall, the ceramic hob on the cooker is smashed & kitchen doors are hanging off. The lounge and garden weren't inspected but I have to assume there is damage & also extensive garden works required.

Obviously the inventory and move-in report will show that all of this damage is down to him. The issue I have is that the costs of new carpet, woodwork for stairway, cooker, toilet, shower, redecoration, kitchen furniture will nowhere near be covered by his deposit which was £950. I have never taken anyone to court before so find that a little daunting if it comes to it. The management company accept no responsibility and I have a fear (although I haven't checked yet) that my insurance won't cover what I consider malicious damage because it is mainly the result of a situation (dogs) that should've been nipped in the bud 6 months ago.

Apologies for the length of the post but I was wondering if anyone else was in a similar situation due to landlord COVID restrictions and how it panned out? I'm all for protection for tenants during these tough times but it doesn't seem too fair if the landlord has zero protection. I recognise this is bad luck with a bad tenant but surely the management company must bear some responsibility if they vet the tenant initially and charge me a relatively large percentage to "manage" the property yet remain totally powerless in case of flagrant breaking of the tenancy agreement,

Of course you didn't have to sign him up for another 6months.

You could have served notice and you could have left the tenancy continue beyond the initial 6 months as it was.

The fact you have presumably issued a new contract resets your time you can serve notice. You now need to wait 4 months when you could have been at the end of the notice period by now. Or at the worst coming to the end of it.

What is your management agents contract in regards of complaint management? Should they have done a visit/inspection at the time if here were suddenly dogs and complaints?

The tenant is clearly out of line. You would need to recover costs via court.

However are you agent doing what you have paid them to do? Seems not if they are stating you had to issue a new tenancy?
Did they vet the tenant? Have you seen the references from former landlord?

For me the fact the rent has been paid by a guarentor since day one is an odd one - usually guarentors are approached when the rent isnt paid by the tenant. Though it's great it's been paid with no issues.

Note - unless I have missed a Covid rule stating new tenancies must be issued🤔

newsgroupmonkey_

Jenni_D said:

I seem to recall reading that an S21 is now 4 months as of 1st June?

It is indeed.

OP, why did you think you had to sign up for another 6 months? did your management company tell you this?

I'd ditch them. They're lying to you. There's nothing to stop you putting the tenant on an SPT (standard periodic tenancy) which goes month-to-month. Problem for the management company is that they can't sting you for a fee.

Sounds like they're fairly useless anyway. Your tenant broke the terms of the agreement (no pets). They should have been given their notice at that point.

AdrianC

Jabei1 said:

It's important and fair to note at this point that the tenant pays full rent (through a guarantor I think) each month with no issue.

Umm, that's not how guarantors work.

The tenant pays his rent and you reclaim damages from him.
If the tenant can't/won't cover his bill at the end of the entire process, THEN you go after the guarantor for anything left over. That may require court. It may be thrown out if the guarantee paperwork is not all correct.

The tenant said that his mother had become ill and he was looking after her dogs for her. My management company said there was nothing we could do, even with him breaking the pet terms of the agreement. We ended with agreeing that he would return the dogs as soon as his mother was better. There were no more complaints and no other news so I considered the case closed.

Tacit acceptance of the dogs.

In March he said he wanted to moved out at the end of his tenancy in April this year. As the time arrived, he said he hadn't been able to find anywhere else. Once again I was told that there was nothing we could do, couldn't evict him so we had to sign up for another 6 months.

No, you didn't - he could have simply gone onto a periodic tenancy.

The management company accept no responsibility

Is there any reason why they should?

and I have a fear (although I haven't checked yet) that my insurance won't cover what I consider malicious damage because it is mainly the result of a situation (dogs) that should've been nipped in the bud 6 months ago.

You knew the dogs were there in October/November.
You renewed his tenancy for another six-month period in April in full knowledge of the dogs.

I recognise this is bad luck with a bad tenant but surely the management company must bear some responsibility if they vet the tenant initially and charge me a relatively large percentage to "manage" the property yet remain totally powerless in case of flagrant breaking of the tenancy agreement,

You're the one that makes the decisions...
Your agent acts on your behalf, but you are ultimately the one responsible for all the decisions taken in the running of your lettings business.

They made you aware of the dogs and noise complaints. You reviewed the situation and accepted it - then, later, issued a new tenancy.

Even if you wanted a fixed period, not periodic, the time for the inspection was before issuing the new tenancy, not afterwards.

You are bound by that tenancy until October, but notice periods mean that's academic anyway.
You need to issue 6mo s21 now, which will expire in December. Hindsight is a wonderful thing, but you should have done this in October, and DEFINITELY after the pre-renewal inspection...
If the s21 period comes back down to two months by August, you can issue 2mo s21 at that point, not to expire before the end of the fixed period.
Fingers crossed all the ducks are in a row for the s21 to be valid, eh?

 You may also wish to issue s8 g12/g13/g15 notice, but they're discretionary grounds and may not be well received by a court if it comes to it, given the tacit acceptance back in October/November last year and subsequent renewal.

 If the tenant does not move out at the expiry of the tenancy, then life gets interesting as you join the queue for a possession hearing.
 When the tenant does finally move out, THEN you determine the extent he owes you - not just for any damage above and beyond the deposit, with remaining life of the carpets etc taken into account, but also any possession costs and rent owed.
If that's <£10k, small claim is straightforward.
 But, even if a court awards in your favour, the fun comes in enforcing the judgement...

Jabei1

Thanks for the replies. I mis-spoke. We are currently on a rolling monthly rental not a fixed 6 month. So I have in no way "accepted" the current set up. I've made it clear, I want him out ASAP. The issue has been that we can't enforce an eviction from what I can tell. There were no inspections for the last 6 months due to COVID so the level of damage wasn't known..and still isn't as there was a room the lady was too scared to enter!!! I think I may have an issue with the letting company as I made a big deal of the dogs and said I wouldn't re-sign without confirmation the dogs were gone. They said they couldn't confirm as inspections and visits were on hold due to COVID. 
With regard to carpets, they are indeed over 8 years old but deep cleaned in between tenancies and in very good nick. I wasn't thinking of replacing them but obviously will now. Are you suggesting that due to their age the fact that they have been ripped up by dogs that shouldn't be there means the insurance likely wouldn't pay out?

HampshireH

Jabei1 said:

Thanks for the replies. I mis-spoke. We are currently on a rolling monthly rental not a fixed 6 month.
Big difference, as new tenancy implied acceptance  so why wasn't notice served?

I have in no way "accepted" the current set up. I've made it clear, I want him out ASAP.
So notice has been served?

The issue has been that we can't enforce an eviction from what I can tell.
Yes you can providing a valid Notice has been served, you have complied with you landlord obligations and take it to court - it's just lengthier than it used to be.

There were no inspections for the last 6 months due to COVID so the level of damage wasn't known..and still isn't as there was a room the lady was too scared to enter!!!

Not good enough imo. She should have asked for the animals to be moved rooms to facilitate the inspection. I hope you have photos of the rest. 

I think I may have an issue with the letting company as I made a big deal of the dogs and said I wouldn't re-sign without confirmation the dogs were gone. They said they couldn't confirm as inspections and visits were on hold due to COVID. 
With regard to carpets, they are indeed over 8 years old but deep cleaned in between tenancies and in very good nick.
You are unlikely to get anything back for this. About 5-7 years is a reasonable timescale in a rental for carpets (of course they can last much longer but hold no value as such)

I wasn't thinking of replacing them but obviously will now. Are you suggesting that due to their age the fact that they have been ripped up by dogs that shouldn't be there means the insurance likely wouldn't pay out?

Yes - what would you pay for 8 year old carpets? You can always try an see what happens. Sounds like there are bigger issues though to focus on.

See my comments.  Go and inspect the place yourself. It's time to take ownership of he situation here and then deal with your useless agents.

Also in relation to insurance. What insurance do you hold? Carpets would come under contents insurance normally I think? Was it furnished and insured as such? Most building insurances don't cover carpets or internal cosmetic damage caused via wear and tear or ignorant tenants.

AdrianC

Jabei1 said:

Thanks for the replies. I mis-spoke. We are currently on a rolling monthly rental not a fixed 6 month.
...
I think I may have an issue with the letting company as I made a big deal of the dogs and said I wouldn't re-sign without confirmation the dogs were gone.

Do you really not even know whether you signed a new tenancy a month and a bit ago or not?

With regard to carpets, they are indeed over 8 years old but deep cleaned in between tenancies and in very good nick. I wasn't thinking of replacing them but obviously will now. Are you suggesting that due to their age the fact that they have been ripped up by dogs that shouldn't be there means the insurance likely wouldn't pay out?

If the expected life of a carpet is 10yrs, and they're 8yo, then the most you are due is 2yrs life - 20% of their value.

This is all basic stuff relating to the business you've been running for north of a decade. Don't tell us... "accidental", right?

Grumpy_chap

This is not a particularly COVID issue - the only part that is COVID related is time to serve notice (4 months as of 1st June) and the capacity of the courts to facilitate hearings.

Jabei1 said:

I have been renting out a property for over 10 years with no issues and around 5 sets of excellent tenants 

That's good.  10 years of good times during which you were setting money aside to cover the eventuality of a bad tenant.

Jabei1 said:

the tenant pays full rent (through a guarantor I think) each month with no issue.

That's good.

Jabei1 said:

The tenant said that his mother had become ill and he was looking after her dogs for her. My management company said there was nothing we could do, even with him breaking the pet terms of the agreement. We ended with agreeing that he would return the dogs as soon as his mother was better. There were no more complaints and no other news so I considered the case closed. 

Ignore the dogs - nothing you can do about it (even with the "no pets" clause).  The dogs are now tacitly accepted.  Move on.

Jabei1 said:

In March he said he wanted to moved out at the end of his tenancy in April this year. 

That's good - better a bad tenant that wants to move on than one that wants to stay at any cost.

Jabei1 said:

As the time arrived, he said he hadn't been able to find anywhere else. Once again I was told that there was nothing we could do, couldn't evict him so we had to sign up for another 6 months. 

Jabei1 said:

Thanks for the replies. I mis-spoke. We are currently on a rolling monthly rental not a fixed 6 month. So I have in no way "accepted" the current set up. 

I think I may have an issue with the letting company as I made a big deal of the dogs and said I wouldn't re-sign without confirmation the dogs were gone. 

As others said, rolling tenancy is the default.  Thank you for clarifying.
BUT did you, or did you not re-sign for 6-months tenancy?  If the AST fixed-term expired and you did nothing, then the agreement goes to a rolling tenancy.  Nothing to sign.  If you signed for 6-months, then you signed....

Jabei1 said:

it was time for an inspection which had been delayed due to lockdown. This was finally completed in May and was pretty horrific.
It turns out there are actually 4 large dogs in the house (so noisy that the lady carrying out the inspection was scared to go into the lounge where they were being kept). 
 The lounge and garden weren't inspected but I have to assume there is damage & also extensive garden works required.

Jabei1 said:

There were no inspections for the last 6 months due to COVID so the level of damage wasn't known..and still isn't as there was a room the lady was too scared to enter!!! I think I may have an issue with the letting company as I made a big deal of the dogs and said I wouldn't re-sign without confirmation the dogs were gone. They said they couldn't confirm as inspections and visits were on hold due to COVID. 

Not visiting for inspections during some parts of the COVID period - lockdowns - is understandable.  However, it sounds like  the Letting Agent did not do a very good inspection when the visit was carried out.  Should have managed access to the lounge and the garden - why didn't the LA simply ask the tenant to move the dogs around?

Jabei1 said:

They have ripped up the carpet in the hall, smashed 5 of the 8 stair bannisters. The house smells very much of dog and dog poo. Hopefully not connected, the toilet flush handle has been smashed, the shower ripped from the wall, the ceramic hob on the cooker is smashed & kitchen doors are hanging off. 

Obviously the inventory and move-in report will show that all of this damage is down to him. The issue I have is that the costs of new carpet, woodwork for stairway, cooker, toilet, shower, redecoration, kitchen furniture will nowhere near be covered by his deposit which was £950. 

Jabei1 said:

With regard to carpets, they are indeed over 8 years old but deep cleaned in between tenancies and in very good nick. I wasn't thinking of replacing them but obviously will now. Are you suggesting that due to their age the fact that they have been ripped up by dogs that shouldn't be there means the insurance likely wouldn't pay out?

The carpets are at "end-of-life" and have NIL residual value.  Deposit protection scheme will not allow for deductions against these.  Replacing the carpets is at your cost.
Similar age / betterment assessment will apply to the hob.
Regardless, the damage to toilet, shower and kitchen doors may be sufficient that you can justify retaining all of the £950 at the end of the tenancy.  That does mean that if the tenant does any further damage, you have no additional redress.  Again, how old and what condition were the kitchen cupboards before the tenant moved in?  If it is just a couple of hinges, the cost to repair might be low value.

Jabei1 said:

I have never taken anyone to court before so find that a little daunting if it comes to it.
I have a fear (although I haven't checked yet) that my insurance won't cover what I consider malicious damage because it is mainly the result of a situation (dogs) that should've been nipped in the bud 6 months ago.

What value are you taking the tenant to court for?  Bearing in mind the "betterment" comments above and by others.
Does the tenant, or their guarantor, have sufficient assets to make court action worthwhile?
What insurance do you have that you think will cover this?

It rather sounds as though you have had ten years of good fortune and now need to ride the bumpy road.  The tenant may be careless but not fundamentally "bad" - at least the rent is being paid.  Work with the tenant and keep the tenant on side so that they continue to pay the rent - don't tell the tenant that you are planning to withhold their deposit when they leave as then the tenant has no reason not to totally trash the place.  Start putting some rent aside to pay for repairs at the end of the tenancy. 

The costs may not be as bad as you first imagine:

• The carpets are due renewal anyway.  
• Some of the "damage" is likely superficial - dog smell will go with the old carpets and a day with the windows open
• Damaged kitchen units, hob.  How old is the kitchen?  Is it time to replacement and make the property more attractive to the next tenant?
• Damaged toilet flush seems an easy and cheap fix.  Maybe also the shower.  Again, is it time for a bathroom refit?
• It is probably appropriate to repaint through the property between tenancies and do a through clean any way.  I always do and it makes the property easily marketable at good rent for the area.
• What "extensive garden works" do you envisage (given the garden was not even looked at)?  Surely a day with a mower and trimmer will get the garden tidy?
• That leaves the broken bannisters...

In fact, I am even coming to the view that the level of damage (value) attributable to the tenant which the deposit scheme allows to be retained may not even reach £950.
This is a property that has given you a good return for ten years and now needs a spruce-up right the way through to make it good for the next ten years.

Hope you can see through the passion on this and prepare for a good next ten years.

Jabei1

Thanks all.
I think I am victim to an overreaction due to seeing pictures of my house trashed after 10 years of no issues whatsoever and seemingly no way to address the situation due to COVID.
A lot of the stuff may well be very basic knowledge but again, due to good luck, I've never had to do anything other than pay for certificates & the odd repair.