Section 21 Received. Self employed & not sure how to rent somewhere else

derobe

Hi all,

I have received a Section 21 notice from the landlord. They have given no reason but my understanding is they don't have to.

I have until 14th June to move out (or they'll go through court proceedings which doesn't sound good for either of us).

My current situation has changed as I left employment in July '22 and became self employed/company director. At the moment I only pay myself between £1000-£2000 per month to cover my expenses which fluctuates.

I am looking for somewhere else but not sure how to pass referencing and I'm looking for some advice. can I show what I've been paying myself out of the company? Can I show I've been paying my rent for the last 18 months without issue? Or do they need PAYE slips, as I do not have those currently (I haven't made myself an employee of the company on payroll) and their isn't an employer to give me a reference.

 I am in a position to be able to transfer up to 6 months in advance of rent if that will get me around referencing.

Thanks for reading and I appreciate any advice offered. 

theartfullodger

derobe said:

Hi all,

I have received a Section 21 notice from the landlord. They have given no reason but my understanding is they don't have to.

I have until 14th June to move out (or they'll go through court proceedings which doesn't sound good for either of us).

....

Thatcher (I'm no fan) brought in section 21 as being a "no fault", no reason required way of eviction... so landlord need provide (nor have) any reason.  I'll go on more below but ...

No you don't have to move out by 14th June.  A Section 21 , even if valid (many many are not) does not end a tenancy nor compel tenant to leave.  They might start court proceedings - or not. 

Suggest you check out if you think s21 notice is valid: Check them with...
https://england.shelter.org.uk/housing_advice/eviction/section_21_eviction/how_to_check_a_section_21_notice_is_valid
&
https://nearlylegal.co.uk/section-21-flowchart/

- if they appear invalid DON'T TELL Landlord (or agent) immediately: That will just bring earlier when the go get the s21 right.  To buy more time wait until court write to you then defend the action with your evidence, buy yourself some more time

If you are able to find somewhere else landlord/agent will - if they are sensible - likely to be very flexible with leave date (fast or slow...) & a good reference.  But sadly being sensible is not required to be a landlord.

Was it landlord or agent who served s21 please?

What is required to rent somewhere new depends on the landlord or agent.  Nothing really needed other than "right to rent".  My best ever tenants had recently arrived in UK, no history or "normal" references.  Their reference was a neighbour of mine who said "Mr Artful, they very nice people" - and they were.

Good luck!

Artful: Landlord since 2000

topgearfan08

Hi, I am a private landlord and would be on the more understanding side, and as long as all other references checked out, I would 'take the risk' as everyone has to start somewhere, and the timings just unfortunate.

I would say forget any agencies, they won't be understanding or care, you won't pass their referencing criteria.   Any landlords whom use RGI (rental guarantee insurance) also won't be able to accept you, as they wouldn't be able to insure the rent.,

You will struggle with a lot of landlords with 6 months up front, as this can alter the type/period of tenancy, and by offering this could raise red flags, as it is often a front for cannabis growers who want to keep the landlord away.

I would say unfortunately your choice of properties is going to likely be reduced dramatically.

I must admit, it's strange to be issued a S21 if you have been a good tenant, without the courtesy of an explanation, even if it's informal.   Very bad form on the landlord.    Would be good to understand the reason.   If it's simply to get more rent, then could be worth doing a deal on that.   It's likely due to their increased costs as mortgages have skyrocketed, and it's unaffordable, or too little return for their money.

If anyone advises you dont go until they evict you through the courts, dont listen to them.  The costs you will end up paying, and CCJ's etc, and bad referencing will scupper you for good.   You may have to spend 6 months in something thats not really what you're after whilst you still look for something better, if you are able to secure anything.

Dont lose faith, widen your net, and target those private landlords whom you can deal with directly, and be upfront and honest to them.   It goes a long way.

topgearfan08

Forgot to add, if you are able to offer a guarantor, (not everyone can) this may swing it in your favour.   Could be worth offering one, even if not asked, to try bump you up the queue.

Demand is high, supply is low... Landlords can choose to be picky, to reduce the risk to their investment the best they can.    Having a suitable guarantor is a favourable way to spread risk, as if you default, the guarantor becomes liable.

DE_612183

When you say you are "paying yourself" - if you don't go through PAYE you should still be declaring income to HMRC - you should then get a end of year statement on income and tax paid - this you can use as proof of income.

topgearfan08

DE_612183 said:

When you say you are "paying yourself" - if you don't go through PAYE you should still be declaring income to HMRC - you should then get a end of year statement on income and tax paid - this you can use as proof of income.

yes but if he only started in June 2022, his first filing likely hasn't been done yet.   Even if it has been done, it will be a partial amount for the year which will skew his affordability, plus most landlords require 2 years self employed returns minimum.

derobe

Thank you for your response.

It is technically the agent serving the notice "the landlord requires the possesion of the property", however, the landlord is the owner of the estate agency! 

That is useful information with the section 21 notice and I have come across this before - I wouldn't mind leaving now in fairness and moving location anyway. So I'm just trying to figure out how to go about this to pass referencing. But good to know I have more wiggle room.

I would ideally pay the rent out of my company, as I work for home anyway - but a friend has mentioned most companies fail referencing/credit checks as they don't build credit much, especially with us being only registered on companies house since November 21' (first years accounts aren't due until August).

topgearfan08

You cant pay residential rent out of your company.   You will need to pay it yourself out of your drawings, and claim back the appropriate allowance on your self assessment for the use of your home as a workplace.

derobe

topgearfan08 said:

Hi, I am a private landlord and would be on the more understanding side, and as long as all other references checked out, I would 'take the risk' as everyone has to start somewhere, and the timings just unfortunate.

I would say forget any agencies, they won't be understanding or care, you won't pass their referencing criteria.   Any landlords whom use RGI (rental guarantee insurance) also won't be able to accept you, as they wouldn't be able to insure the rent.,

You will struggle with a lot of landlords with 6 months up front, as this can alter the type/period of tenancy, and by offering this could raise red flags, as it is often a front for cannabis growers who want to keep the landlord away.

I would say unfortunately your choice of properties is going to likely be reduced dramatically.

I must admit, it's strange to be issued a S21 if you have been a good tenant, without the courtesy of an explanation, even if it's informal.   Very bad form on the landlord.    Would be good to understand the reason.   If it's simply to get more rent, then could be worth doing a deal on that.   It's likely due to their increased costs as mortgages have skyrocketed, and it's unaffordable, or too little return for their money.

If anyone advises you dont go until they evict you through the courts, dont listen to them.  The costs you will end up paying, and CCJ's etc, and bad referencing will scupper you for good.   You may have to spend 6 months in something thats not really what you're after whilst you still look for something better, if you are able to secure anything.

Dont lose faith, widen your net, and target those private landlords whom you can deal with directly, and be upfront and honest to them.   It goes a long way.

Thank you this is a great help. I will look to use openrent and the like and include a covering letter as such on my applications.

All I really do is work, single, no smoking or pets and I have a cleaner in my rental properties every fortnight. Hopefully this will swing things in my favour with someone. 

derobe

To anyone who may be in a similar situation I resolved this with my landlord in the end.

He was looking for an additional 12 month commitment and £50 increase in rent which I can only assume he thought I was not going to agree to hence submitting the Sect. 21.

Zoe02

derobe said:

To anyone who may be in a similar situation I resolved this with my landlord in the end.

He was looking for an additional 12 month commitment and £50 increase in rent which I can only assume he thought I was not going to agree to hence submitting the Sect. 21.

Shows the importance of communication.

Good all sorted.

Personally will accept someone who is honest, passes reference checks and affordability.