Rights as a landlord?

Diesel3390

Hi all. Looking for some much needed advice. 

First time landlord. Currently using estate agent on fully managed service. 

Have had lots of back luck:

- tenants reporting multiple things broken/not working
- trying my best to sort them out hands on
- estate agent super slow and not really helping much. I don't talk to tenants directly as it is meant to be fully managed service
- unlucky with fixes as tradesmen I am sending are not fixing the jobs properly or leaving things incomplete. Then I have to keep chasing up
- tenants not friendly to begin with, so incomplete or unresolved issues are giving them more ammo to put me under pressure

Trying my best but feeling a bit cornered. Tenants want early release which I think I'm going to have to give. 

Just wanted to understand - what are my rights?

?. Is it fair to demand rental payment until I find new tenant? 

? Am I able to ask compensation from estate agent for being too passive and not getting involved in driving the fixes? It's me doing all the chasing. Estate agents only passing messages between me and tenant

? If tenants leave early without paying future remaining rent, would I be covered under rental insurance typically? 

? If tenants leave early and house is vacant (not occupied) for a month or two does it put my ability to remortgage at risk? I am remortgaging in about 2 months.

Please advise as this has become stressful and flying a bit blind here. Tried my best but just been unlucky I think. 

Hoenir

No rights. You are running a business. Par for the course. There's good, bad and indifferent people in every walk of life. 

Diesel3390

Hoenir said:

No rights. You are running a business. Par for the course. There's good, bad and indifferent people in every walk of life. 

I get your general premise: deal with it. And overall I agree with it. That's what I am trying to do by allowing tenant to walk away from contract. 

I know landlords don't always get the sympathy, but behind this there's an honest landlord who has always tried to be fair and resolve things asap. 

With all due respect I was looking for a more nuanced answer. What are the pitfalls of doing an early release? Does that make me liable somewhere else, for example does it make it harder to get remortgage if house is unoccupied for a month or two? I am in the remortgage process and want to avoid a shock. 

Also, what other things do I need to think about is more of what I'm really asking so that I am aware of the consequences. 

First time so just really looking to be more aware of what the situation means from a bigger picture. 

Grateful if you have any more thoughts or if anyone else has experiences of pitfalls to share. Thank you. 

cjdew

The answer to most of your questions lies in the service level agreement you have with the estate agent. I.e within 3 days they will respond to their client (you the landlord) etc.

As for trades, are you being explicit as to what "done is" and withholding full payment until this is agreed. You shouldn't be left with "half a job".

Finally, i would have thought having no tenants or exiting tenants would affect your ability to remortgage as in affect you are telling providers that you are down on income. 

You need to keep evidence based written diary logs of date tenants complain re an item, you contacting estate agent, time to resolution etc.

You don't want tenants to stop paying due to claims of landlord maintenance neglect as you will never get them out then and could have up to a years no rent whilst you battle them. 

ThisIsWeird

I don't know the rules about what you ask, but it sounds as tho' you've been pretty unlucky - with your tetchy tenant, ManCo, and trades folks.
The fact that your tenants wish to leave soon suggests to me that your rental level is typical, and not a 'bargain'. They must feel they are confident of finding a (better) alternative quite easily? I know a couple of folk who rent out properties, and they both self-manage, but set their rent noticeably lower than equivalents; the tenants know they are doing well, so are usually very understanding if something genuinely goes wrong like a delayed repair (but they both also have a list of good trades folks too).
In essence, a happy and appreciative tenant is more than half the battle.
For what your ManCo is doing, could you do this part yourself? It sounds as tho' you are doing much if it in any case... If you then split their cut between you and the rent level, would it look more enticing for a new tenant?
Obviously this carries its risks, and you need to ensure you conform with all your requirements. And check references with a fine-toothed... 

anselld

To be blunt, it is not bad luck it is incompetence.  If you employ an incompetent agent and incompetent trades that reflects on you (were they recommended?).  You have to own these problems and get them fixed and if necessary talk directly to the Tenant if communication is part of the issue.  If you give in to early release the issue will just repeat itself.   

_Penny_Dreadful

Diesel3390 said:

Hi all. Looking for some much needed advice. 

First time landlord. Currently using estate agent on fully managed service. 

Have had lots of back luck:

- tenants reporting multiple things broken/not working
- trying my best to sort them out hands on
- estate agent super slow and not really helping much. I don't talk to tenants directly as it is meant to be fully managed service
- unlucky with fixes as tradesmen I am sending are not fixing the jobs properly or leaving things incomplete. Then I have to keep chasing up
- tenants not friendly to begin with, so incomplete or unresolved issues are giving them more ammo to put me under pressure

Trying my best but feeling a bit cornered. Tenants want early release which I think I'm going to have to give. 

Just wanted to understand - what are my rights?

?. Is it fair to demand rental payment until I find new tenant? 

? Am I able to ask compensation from estate agent for being too passive and not getting involved in driving the fixes? It's me doing all the chasing. Estate agents only passing messages between me and tenant

? If tenants leave early without paying future remaining rent, would I be covered under rental insurance typically? 

? If tenants leave early and house is vacant (not occupied) for a month or two does it put my ability to remortgage at risk? I am remortgaging in about 2 months.

Please advise as this has become stressful and flying a bit blind here. Tried my best but just been unlucky I think. 

If the tenants have been reporting repair issues from the start of their tenancy then it sounds like you've been letting a shitbox.  You should have ensured the property was in good condition before starting a tenancy with someone.

I'm not surprised the tenants are being unfriendly if there are multiple issues with the property that are still unresolved.  How would you feel in their shoes?  Moving costs money so things must be bad enough that the tenants want to go to the hassle and expense of moving so soon rather than wait for you to sort things.  Rather than simply agreeing to surrender the tenancy early you appear to want to continue charging the tenants rent until you find new tenants.  To me (and I am a landlord) this sounds unreasonable.  Either the tenants are going to remain on the hook for rent until you have fixed everything and found new tenants or you are planning on letting your shitbox to some new unsuspecting tenants.  Neither sounds like a good option to me.

The tenants could go to the council if you don't get things sorted soon and it sounds like the relationship has irrevocably broken down.  Agree to surrender the tenancy and do not try to wangle any more rent out the tenants.  Then focus on getting the property up to a good standard before re-letting.

The letting agent sounds useless.  I too have encountered letting agents whose idea of fully managed is just passing messages back and forth between me and the tenant rather than actually managing the let.  You don't say where the rental property is located but I'm guessing it is in England.  Letting agents in England must be signed up to a redress scheme.  Once the tenants have vacated I would write a formal complaint to the letting agent and if unsatisfied with their answer escalate your complaint to the redress scheme.

Where did you find the tradespeople?  Recommended by the letting agent by any chance?

Join NRLA, maybe even take some of their courses.  If you continue to fly blind instead of educating yourself you will continue to lose money hand over fist.

ThisIsWeird

Diesel, could you list some of the issues in you property that needs fixing? And, do you know decent trades folks who could sort them, so you don't have to rely on your ManCo?
If the situation is truly as you say, and the management has been pants and the main cause of the dispute, then perhaps the best option is to contact your tenant directly, apologise for what's gone on, and state you will take personal control of the situation, and get it sorted (you don't have to 'blame' the ManCo - it'll be obvious by implication).
If you manage to do this, then you might feel inclined to continue with self-management. 

gwynlas

It was up to you to ensure property was suitable for letting and  choosing an agent who did an adequate inventory. There might be minor genuine problems that occur but a good agent should have trades ready to deal with these. Let these tenants go and rethink whether you want to be a landlord, whether you wish agency to just find and reference tenants or get agents who provide a professional service so that you can be hans off.

tacpot12

While I agree with the thrust of the previous comments, no-one has answered the questions you have asked, so I will try. (I'm a landlord BTW). 

? Is it fair to demand rental payment until I find new tenant? 

Under the circumstances, No, it's probably not fair. This is a tough outcome, but running a business is tough. 

? Am I able to ask compensation from estate agent for being too passive and not getting involved in driving the fixes? It's me doing all the chasing. Estate agents only passing messages between me and tenant.

Any compensation would be dictated by the contract you have. I would recommend meeting with them, and asking them if they can provide the service you want. Hopefully, if they can't provide a fully-managed service where things are solved promptly and where they take responsibility for the standard of workmanship of traders they use, they will say so and you can mutually agree to end the service. If you give them another chance, I would require them to amend the contract so that you are entitled to compensation if they don't deliver. It's quite simple to decide if compensation is due - if the tenant calls you about anything, you get compensated - you can always waive the compensation if you were happy to be called. 

? If tenants leave early without paying future remaining rent, would I be covered under rental insurance typically? 

No, the rental insurance contract would normally require you to take legal steps to recover the rent owe to you. If you agree to the tenants leaving without paying rent, then that is not covered as it is a private agreement between you and the tenants - there is nothing you can legally do to recover the rent if you have agreed that the tenants don't have to pay it.  

? If tenants leave early and house is vacant (not occupied) for a month or two does it put my ability to remortgage at risk? I am remortgaging in about 2 months.

Sorry, I don't know about this, but I would expect that it would not change your ability to remortgage. In reality, the property might be relet before you start your search for a new mortgage. 


Here are my suggestions:

Meet with the tenants, and apologise. Offer to take over the management of the repairs while you take to the Estate Agent about their service (only do this if you are able to supervise the repair or have someone you can entrust this with), and ask the tenants if they are prepared to give it another try.

It is always easier to get stuff fixed properly when the property is empty so if the tenants don't want to give you another chance, allow them to leave and then take over responsibility for getting the property ready to be re-let. If you haven't been through the property and done a risk assessment using the Housing Health and Safety Rating System (HHSRS), do so as soon as the current tenants leave. Get all the jobs that need attending to properly, paying particular attention to ventilation, plumbing and damp issues. 

Meet with the Estate Agent as suggested above to see if they can guarantee (i.e. backed up by compensation) the service you actually want. Walk away if they can't do it, won't guarantee it with compensation or if they just leave you feeling that they don't agree that their service has been sub-standard. If they think they have done the right thing, you would be better moving to another estate agent, but ask to speak to an existing client so you can ask whether the client is getting calls that they should not be because the estate agent isn't providing the service. 
 

Albermarle

From the stories you read in the media, it should not be difficult to relet as there is a shortage of rental properties in many areas.
So maybe best to let current tenants go, and as suggested do what work is needed whilst the house is empty and start afresh with new tenants.