Selling property, tenant can’t afford to move

CrowdFunded

Hi all,

I am in the opposite situation, to the poster in this post below - https://forums.moneysavingexpert.com/discussion/6433037/landlord-selling-property-can-t-afford-to-move

My current situation dictates that I have to sell my property. My tenant has been served a Section 21 notice (S21).  Which has made my previously good tenant, into a bad one, that has no intention of paying further rent payments, or moving out until forced.

I got a letting agent to serve the S21, to make sure it was done correctly.  So what do I do when the notice date expires?

What would you say is the best course of action, any advice would be appreciated?

user1977

Offer them cash? 

PRAISETHESUN

If the tenant stops paying rent and starts to build up arrears, you can issue S8 as well.

Short of that, not much you can do to force them to leave. You might be able to negotiate them out by paying them off, otherwise you need to go through the court process to get a possession order, and then likely bailiffs to force their removal.

See here:

Post 4: Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

https://www.gov.uk/evicting-tenants/section-21-and-section-8-notices

knightstyle

I wonder if the tenant wants the local authority to house them when they leave?  If so they need to have a court authorise the eviction before they get any help.

ArbitraryRandom

You can't do much until it expires (and be careful about what you do, in case you give your tenant grounds to claim harassment). If I were you I would be asking my tenant if there was anything I could do to help them move and see what they come up with. 

But really it depends on how quickly you need the property and what the actual problem is for the tenant.

It could be that offering them a month or two rent/agreeing to return the deposit without deductions will help them be able to afford to move. Or they might need some time to arrange a move (2 months really isn't very long).

Or it could be that what they're hoping for is being rehoused by the council, at which point they have to sit and wait; so in that case your next step would be an application to the court, and it would be in their best interests for the process to go smoothly to avoid additional costs and stress. 

Another option is to try selling the property with a sitting tenant. 

Oh, and just because you have had a LA serve a s21 doesn't mean there's not a problem with it. 

theartfullodger

Simply sell with tenant.  Entirely legal.  I bought a house with 4 tenants - still being rented out, 16 years later.

Is your s21 valid?  Many are not.  Google Nearly legal section 21.

Making people homeless using Thatcher's iron handbag if section 21 I'd unlikely to make they happy, surely you knew this,

Keep us informed if progress (either forwards or backwards)

user1977

theartfullodger said:

Simply sell with tenant.  Entirely legal.

Though not very attractive if it's a tenant who has stopped paying rent!

GDB2222

knightstyle said:

I wonder if the tenant wants the local authority to house them when they leave?  If so they need to have a court authorise the eviction before they get any help.

If they don’t pay rent, they are classified as intentionally homeless, and the LA may have no obligation to help them. I am not sure how that works if there are children, though?

diystarter7

Hi OP

Selling with a T in it is an option but not in your case becuse of what they are up to now.

You have done the right thing via LA. Even then be aware things may not go to plan.

Anyone reading this thread and I'm not having a go at you OP, please, please, please, get a propery, binding AST, use good LA's, get legal cover at the very least and consider non rental payment insurance as well, These are often no needed but it happens and if it does, the LA will take over depending on the srvice contract you have agreed with your LA's

Personally, I would never reward a T like that with giving them "cash" as some have suggested. However, only you can decide to remove stress ASAP.

The LA you used, give them a quick call and see what the process is and inda of costs etc.

I can understand some T's have to sit it out for eviction to get a coucil place/etc, but to stop paying rent on purpose is not good at all.

Good luck, I sincerely feel for you

Btw, then chase them for every penny of unpaid rent, etc, etc  - hopefully that will open their eyes when they pay costs onn top as I am safely assuming they can pay but dont want to.

Good luck!

propertyrental

CrowdFunded said:

.....
I got a letting agent to serve the S21, to make sure it was done correctly.  So what do I do when the notice date expires?

What would you say is the best course of action, any advice would be appreciated?

You cannot assume that. Agents often get it wrong. Check here:

S21 checklist (Is a S21 valid?)

Assuming the S21 is valid, you wait for the (2 months) expiry date and then apply to court for possession.

If there are arrears, you can issue a S8 G10 now, though possession is at the court's discretion, and unlikely to succeed.

Or wait till arrears are 2 months (ie the day after the 2nd month's rent is missed) and serve a S8 G8. The court has no discretion and must evict unless the tenant pays down the rent before the court date.

See
Schedule 2 (17 S8 Grounds a LL can use)

Alternatives are to sell to a landlord (with arrears owed- not likely) to bribe them to leave.

diystarter7

user1977 said:

theartfullodger said:

Simply sell with tenant.  Entirely legal.

Though not very attractive if it's a tenant who has stopped paying rent!

Agreed. If the T kept on paying then imo a good chance a sale may get a better price as its income from day one