Rental - asking tenants to leave

Kinhh

Hi All
We rented a property to a family friend 5 years ago (had disaster written all over it!) & gave her a massive discount.

Anyway, she wont pay an increase in rent (now 5 years on), tax is too high to make it worth it for me, repair costs are too high etc.

Anyway, we want her to leave. We will probably sell the property. I want to give her a good amount of notice and want to ensure I'm doing things above board. Can I simply send her a letter saying that the tenancy will end in May 2024? Do I have to do anything else? 
Many thanks, Katie

propertyrental

No. You will struggle to get her to leave (unless perhaps you pay her?)

You will need to serve her a valid S21 Notice. But it is unlike;y to be valid unless you originally gave her

* a gas report (if there's gas)

* an EPC

* an electrical report

* the gov leaflet

etc

Did you take a deposit? If so, is it registered?

Now follow the flow chart to see if a S21 notice will be valid

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

You may be able to increase the rent by serving a S 13 Notice. If valid, and if she does not pay, then once rent arrears are > 2 months you could evict via a S8 Notice

The above assumes this is England.

Was there any written agreement? Fixed term agreed?

For the avoidance of doubt, in England a tenancy cannot be ended by a landlord. Only the tenant, or a court (eg following a S21 or S8) can end a tenancy.

theartfullodger

Your letter will have no legal effect, will not end tenancy nor compel tenant to leave.

Do what propertyrental wisely suggests.

Yet ANOTHER example of why not to rent to friends or family:

Did you do any training in how to be a landlord??

Been declaring ALL rental income to HMRC??

Got all relevant records for when CGT becomes due??

"Repair costs too high"??  Do you mean there are repairs required that you've not done??  If so, a perfect way to ensure judge is on tenant's side at any eviction hearing....

Kinhh

Thanks all,

Yes, I agree. It was my mum who wanted to do her a favour - I knew it wouldn't work out. 
Have all certificates, gas, electrical reports, smoke alarms etc.
Tax: yes, 100% paid and declared.

I'll look into the 21, thank you, Katie

Kinhh

My mum was the person who rented the property out, and was in charge of all admin. To be honest, she wasn't equipped to deal with any of it. I took over helping her with certificates etc, but had never read about the deposit protection - so on this basis, I can't ask the tenant to leave? Also, she has a dog (as seen on facebook), no pets are allowed in the property as per agreement. 

Failing asking her to leave, surely I can increase the rent? She pays 950 (current market value is 1500). I suggested an increase of £50 per month starting in March, reaching 1150 - I think this is more than reasonable. She doesn't want to work so said she can't pay the increase.

Thanks for your time. 

doodling

Hi,

If you haven't protected the deposit then you must return it before issuing the S21.  That will sort out the deposit as an obstacle (but won't stop your tenant successfuly suing you for non protection of the deposit).

If you are going to increase the rent then I would go throught the formal S13 process and increase the rent to a market rate (assuming that the tenancy agreement permits this).  There is no point in gradually upping the rent - that could take decades.  The tenant is free to go to a tribunal to object so make sure you can support the figure you select.

The dog has no bearing on whether a court will decide in your favour if you have to go to court after issuing the S21.

Sea_Shell

Who is "we" and who owns the property.

You and your mum?   Do you own 50/50?

Tucosalamanca

Unless tenancy agreement says otherwise, I would be inclined to increase rent to what the market rate is (in your opinion).
You can always suggest that they ask for a rent tribunal to establish what is fair.

You might not ever receive any additional rent if they want to be difficult, but it will almost certainly focus their attention and perhaps prompt them to move on?

Good luck with it...

Albermarle

You might not ever receive any additional rent if they want to be difficult, but it will almost certainly focus their attention and perhaps prompt them to move on?

On the other hand realising how much they would have to pay for another rental if they left this one, may make them want to stay put even more!

Kinhh

Thanks all. If she paid the current rental rate, then all the hassle from this tenant would be worth it.

Not that its relevant, but she wanted me to send out a painter and decorator last week because she scuffed the skirting board! 

I now have some steps to move forward with, many thanks for everyone's time.

propertyrental

* To increase the rent you must use a S13 Notice. A letter (as with eviction) will have no legal meaning.

* no point increasing rent gradually. Do research (in case she goes to Tribunal) and increase to just below what the local market is. Have evidence. The Tribunal will simply assess if the proposed rent is in line with the market or not

* T will either pay the new, market rent (hooray!) or not and go into arrears (S8 eviction - hooray!)

* have you followed the flow chart to ensure everything else (other than the deposit) will validate a S21 Notice?

* even if you return the deposit in full (to allow for a valid S21) you can still be sued for the penalty

* dog is irrelevant

* scuffed skirting board? By all means get it painted - at her cost as she damaged it. I suggest you get a quote and request cash in advance.......!