Way forward with tenancy

Mr_Falling_Star

Hi there

My sister and I rent out a house we inherited to a lady and have been doing so since 2016. During Covid a lot of arrears built up and they have been paid off in the last week or so. As soon as those were paid off we got a long list of maintenance that needs to be done. Also I have a disabled daughter that live with their Mother and at the same time their Mum is not well so I really need to sell the rented house and buy a bigger property so I have extra space to look after her. This has all happened in the last week. We have previously told the tenant we will renew their lease at the end of March but now I am not so sure?

Can anyone suggest a good way forward? I want to be fair to the tenant and give them the correct notice (even more so as I said I would renew) but really I just want the house gone. Looking at other places on the Internet she could contest any section 21 eviction notice as revenge? Have I got that right? Note: The tenancy is due for renewal on the 31st March

theartfullodger

First make plan to fix repairs, (realistic), document to tenant and agree then get on and fix things.  You have responsibilities to tenant, regardless of your personal circumstances or if they are paying rent or not. 

Go see a couple of mortgage brokers specialising in landlords band see what they can suggest 

It is entirely legal and possible to sell with tenant remaining, but price usually lower.

Done any training in how to be landlord or in landlord/tenant law please ?

Renewal IMHO almost always inadvisable for landlords.  Rolling monthly tenancy has no paperwork needed and more incentive for tenant to abide by tenancy (rent on time, place looked after etc).

Do you know if a section 21 notice would be valid (many - many - are not....)? Google " nearly legal section 21 " for checklist.

Mr_Falling_Star

Thank you very much for that reply, really useful. No I have had no training in being a landlord

_Penny_Dreadful

This is a link to the Nearly Legal Section 21 checker:

https://nearlylegal.co.uk/section-21-flowchart/ 

Go through it to ensure you can issue a valid Section 21.  I agree with @theartfullodger, regardless of what is going on in your own life or that the tenant has been in arrears you have a legal obligation when it comes to maintenance and repairs in the property.

There is no need to keep issuing new fixed term contracts, simply let the tenancy become periodic when the current fixed term ends.

RAS

Yes, go periodic, ensure that all legally required documents are in place, including any necessary repairs. 

That means you can sell if you need to, the tenant knows that if they don't pay rent on time, you can terminate the tenancy more easily. And it isn't revenge if you still need to sell up.

LegallyLandlord

I agree. Do the repairs. You’ll get a better price for the house if it is in good Nick. Don’t renew for another fixed period (letting agents can make it sound like you have to). 

When I sold my flat last year, I served s21 notice for the renters to leave, decorated it myself, and was able to sell it with vacant possession. Made a huge difference not being tenanted and the sale went through in 6 weeks. 

Here’s a list of your repairing obligations as a landlord: https://theindependentlandlord.com/landlord-responsible-repairs/

For anyone reading this who wants to become a landlord or who is a landlord, it is vital you get some training. The cheapest and best value in my view is the NRLA, the National Residential Landlords Association, and if you use my referral code UYN-702 you’ll get a £15 discount:
https://www.nrla.org.uk/join

ignorance of the law is no defence, so it’s a wise investment to educate yourself on landlord responsibilities. 

propertyrental

Address the repairs. If they are valid problems, you need to fix them. Apart from the tenancy obligations, they'll ultimately make your property more saleable and maybe at a higher price.

If you want/need to sell, and assuming you don't want/can't sell to another landlord (inevitably at a reduced price) then you'll need to serve a S21 Notice, wait till the tenants are gone, and then market/sell.

As others have said, there are many reasons a S21 may be invalid. see the checker below.

But one potential reason is if the T has reported repairing issues, the LL has taken no action to repair, and the T then applies to the council for an Improvement Order. See The Deregulation Act 2015 (S33) Any S21 would then fail.

S21 checklist (Is a S21 valid?)

Mr_Falling_Star

Thanks to everyone that has replied. You have all been really helpful

tealady

I would keep your tenant onside.
They may be able to afford your property so could save you EA fees.
Or if they cant they may be more flexible regarding move out dates.
Bear in mind if your tenant cannot afford to move it may take longer for them to leave.

macman

Mr_Falling_Star said:

Hi there

My sister and I rent out a house we inherited to a lady and have been doing so since 2016. During Covid a lot of arrears built up and they have been paid off in the last week or so. As soon as those were paid off we got a long list of maintenance that needs to be done. Also I have a disabled daughter that live with their Mother and at the same time their Mum is not well so I really need to sell the rented house and buy a bigger property so I have extra space to look after her. This has all happened in the last week. We have previously told the tenant we will renew their lease at the end of March but now I am not so sure?

Can anyone suggest a good way forward? I want to be fair to the tenant and give them the correct notice (even more so as I said I would renew) but really I just want the house gone. Looking at other places on the Internet she could contest any section 21 eviction notice as revenge? Have I got that right? Note: The tenancy is due for renewal on the 31st March

No it's not. When the fixed term ends, it becomes a periodic tenancy unless a new fixed term is mutually agreed. If it's not, the tenancy continues just as before. It does not end unless the tenant or a court ends it.