Inherited property with tenant in situ

nurse1980

Hi

I’ve recently inherited a property. The house has a tenant in it and she’s been there for at least 15 years. 

Unfortunately my dad died very suddenly so I’m clueless into the arrangements be had with the tenant but it seems very casual. I have found a tenancy agreement but it isn’t dated and there us nothing written in the deposit space (just blank). Housing benefit pays all the rent (the rent hasn’t increased since she moved in).  Unfortunately the tenant has a serious drug problem and may be difficult to evict. 

I have sorted the gas safety check and the EICR. The house is in disrepair and the plan is to serve a section 21 in the next year or so, so that it can be renovated. 

I have rang a local solicitor today to obtain a cost of drawing up a new tenancy agreement, he said he would also ensure that everything was above board with that so it will be covered when it comes to issuing a section 21. The charge was £500. 

Is this something I need to pay or is it easy to DIY? We have had the worst 12 months as a family and I’m worn down with everything at the minute so just want an easy (ish) life. 

Thanks 

user1977

Has the tenant told you they'll sign a new agreement? Depending on what their current tenancy actually is, it may be a daft thing for them to sign away their rights.

MaryNB

If the tenant is on housing benefit and hasn't paid an rent increase in 15 years she may struggle to find another private rental. Where I live anyway the rental market is so bad that people are using airbnbs, cost of renting is soaring and landlords are being very fussy about tenants. If you're in an expensive area she may be forced to look at council housing. If so you may have to go to court after the S21 expires because she won't be able to leave until the bailiffs remove her, often that's the only way a council will give her accommodation.

GoogleMeNow

You say that the tenant has been there for at least 15 years.  Is it possible that it is a protected (or regulated) tenancy?  The tenant would have a protected tenancy if the tenancy agreement had started before 15th January 1989.  If so, it will be very difficult to evict her.

Ms_Chocaholic

What are your plans for the property in the long-term.

Pixie5740

nurse1980 said:

Hi

I’ve recently inherited a property. The house has a tenant in it and she’s been there for at least 15 years. 

Unfortunately my dad died very suddenly so I’m clueless into the arrangements be had with the tenant but it seems very casual. I have found a tenancy agreement but it isn’t dated and there us nothing written in the deposit space (just blank). Housing benefit pays all the rent (the rent hasn’t increased since she moved in).  Unfortunately the tenant has a serious drug problem and may be difficult to evict. 

I have sorted the gas safety check and the EICR. The house is in disrepair and the plan is to serve a section 21 in the next year or so, so that it can be renovated. 

I have rang a local solicitor today to obtain a cost of drawing up a new tenancy agreement, he said he would also ensure that everything was above board with that so it will be covered when it comes to issuing a section 21. The charge was £500. 

Is this something I need to pay or is it easy to DIY? We have had the worst 12 months as a family and I’m worn down with everything at the minute so just want an easy (ish) life. 

Thanks 

What I’m about to write assumes the property is in England. Even if nothing is written down there is a tenancy in place. It will be a contractual periodic assured shorthold tenancy (AST). There is no benefit to trying to get the tenant to sign another agreement in fact it could make things worse* and even if it’s something you want to do the tenant is under no obligation to sign it. 

*A new AST would be worse if your father hadn’t been doing annual gas safety checks because this would invalidate a Section 21 notice. However, this is not the case for tenancies that started before the Deregulation. Act came into force (1st October 2015). Same goes for the “How to Rent” book that is unlikely to have been issued to the tenant. 

You can check yourself what would make a Section 21 notice invalid using the link below. My advice would be to not get a new tenancy agreement signed and start the eviction process asap because it’s going to take ages.  The eviction process is something you can do yourself but if you do use a solicitor run a mile from one who suggests getting a new AST signed. 

https://england.shelter.org.uk/housing_advice/eviction/section_21_eviction/how_to_check_a_section_21_notice_is_valid

nurse1980

Thank you for the replies. 

The council have given me a tenancy agreement that was signed in 2008 for 12 months. An AST agreement? It goes on to say that it will carry on month to month. 

It was the solicitor that suggested I ask her to sign a new tenancy agreement to
ensure that the good rent guide etc is done. 

Do I not need to do that? 

The plan is that when she has left (I appreciate that this probably won’t be any time soon) is to fully renovate the house and let it. 

nurse1980

My father did do the annual gas safely checks. 

Pixie5740

nurse1980 said:

Thank you for the replies. 

The council have given me a tenancy agreement that was signed in 2008 for 12 months. An AST agreement? It goes on to say that it will carry on month to month. 

It was the solicitor that suggested I ask her to sign a new tenancy agreement to
ensure that the good rent guide etc is done. 

Do I not need to do that? 

The plan is that when she has left (I appreciate that this probably won’t be any time soon) is to fully renovate the house and let it. 

I don’t see how signing a new tenancy agreement, assuming the tenant agrees to this, makes things any easier when there is a perfectly valid tenancy in place that pre-dates the Deregulation Act. Suggest you DIY or find a new solicitor. 

Norman_Castle

nurse1980 said:

The plan is that when she has left (I appreciate that this probably won’t be any time soon) is to fully renovate the house and let it. 

If the tenant is happy with the property and not causing you problems why not continue with them?

chanz4

Make sure register for self assessment, also gave you told hmrc about the rent