UK Landlord Forum / Life

Hi
I got to the end of my initial period as a landlord or 6 months end of December (It's now almost December) when it either starts to roll on as I am sure its a 'standard' tenancy agreement drawn up by a local estate agents.
Because the tenants had no willing guarantor and failed referencing they were willing to put up 6 months rent which sounded ok and I took that option.
But now is there a risk in that I no longer have cover in the event of failure to pay rent...I was under the impression that estate agents were going to draw up a new agreement around november where I got busy and kept forgetting. Not good I know and they now say they will do another agreement but I just wanted to ask what is the norm that seems to make people happy.
I understand the tenants have requested to go on a periodic roll over but I think now they might be able to give notice and leave at any point. I don't really understand the wording so much in the  contract. So at this stage what can be typical and where might I be at greatest risk. I was thinking of offering 2 months rent to be due in advance or even the 6 again.
I want to be fair (and it has nothing to do with trust) but I can't afford to take a risk.

Thanks for your thoughts.

Standard scenario would be to allow the tenancy to go periodic, as it will if you don't do anything or if they don't sign anything.  As you haven't issued a section 21 yet you still have to give them 2 months notice if you are to request they leave.  A periodic tenancy gives me (you) the landlord more flexibility to get the tenants out if needs be. 

You seem risk adverse, is letting the right game for you?

Worried about the tenant leaving...they can leave at any time, even in a  fixed term, owe outstanding rent for the period they should have been there and you would have to leave the property empty, go to court (£££) to recover the money etc etc.  A more pragmatic and cheaper route would be to realise life changes, tenants leave, new tenants arrive and the new rent comes in.

You 'offer' to have them pay 6 months advance with less than 30 days notice doesn't seem reasonable and no tenants that I've had would have such a slush fund.  You say 6 months or out, you still have to give them 2 months notice if they say no and don't leave voluntarily on the expiry of their fixed term contract, if they don't leave after the section 21 expires then it's off to court for a possession order.

Trying to keep Tenants 6 months in advance with rental payments forever seems a little punitive. At some point you're going to have to accept that they're back on track, as in personally, and take the same risks that we all do. It certainly can go wrong. If you can't handle the lack of rental income then possibly consider some form of proper rental guarantee insurance - or even double-check that your existing Landlord Insurance Policy does not provide said same (it might be in there as a value-add). If you balk at any extra insurance, then consider raising the rent, modestly, to offset that cost.

Thank you both. Yes I am risk adverse in my current cash strapped scenario. And I prefer not to be here of course I am trying to hold onto my property is why I am here. That being said I can't get rent cover insurance because they failed referencing.
If it goes periodic and they stopped paying rent how long could they stay in the worst case? 2 months more after  the date of non payment?
The have a relative who could have decided to be a guarantor but didnt want to (I assume) so if the relative doesn't want the risk of their own kin not sure why I should accept all the risk.
I can handle very limited rent arrears but not court fees. In fact I can get insurance for those but not the rent recovery. That might be wise.. I didn't take it out before because they paid the full agreement up front.

Quote from: Web Designer on November 29, 2017, 10:33:37 AM
If it goes periodic and they stopped paying rent how long could they stay in the worst case? 2 months more after  the date of non payment?

Worst case is way way longer, like go to court, get a possession order, book bailiffs to evict them longer, I don't know the time scale and don't want to worry you unnecessarily by making one up.

So... the other choice would be to end the tenancy and get new - better, improved - Tenants but the truth of the matter seems to be that these Tenants have not done anything wrong and, in fact, have done all you asked of them. What most Landlords want to avoid is The Void. You're right that there's no reason to get any kind of cover when the whole thing is paid up-front... it's just that it's hard for normal people to find 6 months of rent up-front and that's kinda what you're contemplating the ask is here, on a kind of rolling basis. How long could they stay? Many months I'm afraid.

You say you're trying to hold onto your property... but have you given serious consideration to letting go? Are you in negative equity or something? If you aren't then a nice boost to your finances may allow you to breathe easier, have that reset and take stock - without all these complications. I ask this, and suggest this, because my own strong view is that the property business is for people who have the liquid funds to play in this space... when it's a struggle I think it can drive negative behaviours towards Tenants and create monster Landlords (deliberately left generalised).

http://www.evictionaid.co.uk/timescales/

But RIPTIDE you said
"As you haven't issued a section 21 yet you still have to give them 2 months notice if you are to request they leave.  A periodic tenancy gives me (you) the landlord more flexibility to get the tenants out if needs be. 
"

so periodic doesnt mean that either party can give 2 months notice then...I see..I think. Yes selling up could be the best thing.

But it sounds like there is nothing I can do now anyway...and I do have a lot of trust in them though I am always advised not to place any decision on that (unlike the relative who wouldnt give them a guarantor) so that is on my side.

Quote from: Web Designer on November 29, 2017, 11:19:45 AM
But RIPTIDE you said
"As you haven't issued a section 21 yet you still have to give them 2 months notice if you are to request they leave.  A periodic tenancy gives me (you) the landlord more flexibility to get the tenants out if needs be. 
"

so periodic doesnt mean that either party can give 2 months notice then...I see..I think. Yes selling up could be the best thing.

Periodic means tenant can give 1 month, you have to give 2 months notice.  It sounds like a notice from a tenant would be the worst possible news to receive, relax, there are other tenants out there.

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