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What's your idea of a rental nightmare? How about the first-time landlady who unwittingly let her home to a convicted criminal? Or the individual who leased an east London property to a Chinese couple, who then used it as a cannabis farm? Or, most recently, the case of Janice Gledhill, whose tenant destroyed her £250,000 house with a 14-ton digger after a dispute over rent? These may sound like fantasy horror stories, but they are just some of the real-life tales making the news or forming part of a new television programme, Tenants from Hell, to be broadcast on ITV1 at 9pm on Thursday, July 6. As falling share prices lead to a lack of confidence in investing in the stockmarket, many people are putting their money into properties instead. The Council of Mortgage Lenders says that between 2000 and 2005, the number of buy-to-let mortgages rose by 483 per cent. But while the figures look rosy on paper, it is not always easy being a landlord once tenants move in. Take Nathalie Souter, a 33-year-old sales manager, keen to save money for her wedding and new house with fiancé Mark Hasted, a 33-year-old IT consultant. The couple thought it wise to rent out both their flats to generate income for the start of their life together. ‘I shared my two-bedroom flat in Streatham, South London, for a year-and-a-half with Cynda, who I found on a rental website. She gave me a month's rent up front,’ explains Nathalie. Things ran smoothly until Nathalie moved with Mark into a small Victorian two-bedroom house in Berkhamsted, Hertfordhire. She decided to let out her room in the Streatham flat to an actor friend of Cynda's called Karl, while Mark rented out his two-bedroom flat in nearby Tring. Karl agreed to pay £500 a month, including all bills except telephone calls. ‘He had stayed with us in the flat a few times before and seemed fine. He even produced evidence of an acting job, so I knew he would have pay cheques coming in,’ Nathalie said. She admits she should have been suspicious when Karl refused to sign a contract and the first week's rent did not arrive. ‘He said it would take a while for the bank to set up a standing order. The second week was the same and the third week brought a different excuse. It went on, with the excuses getting ever more wild.’ After two months, Nathalie contacted independent advice agency Landlord Action. The company served a notice costing £99 plus VAT saying that if Karl did not pay by a certain date, action would be taken to evict him. He left the property owing £1,500 in rent, money Nathalie believes she will never see. ‘As well as losing three months' rent, Karl also cost me £300 in bank charges for delayed mortgage payments. I could try to get my money back - £2,000 is a lot to me - but I don't think it is worth trying to trace him,’ she says. Nathalie's advice to new buy-to-let landlords is: get a month's deposit upfront, make sure the tenant signs a contract before they move in and always remain professional. ‘Do not be swayed by personal feelings when someone tries to soft-soap you,’ she says. Nathalie now has a new tenant with a deposit and signed contract in hand. Paul Shamplina of Landlord Action, says: ‘We are like the Samaritans for landlords. The problem is that nearly everyone is a landlord these days, which means lower rents. So landlords cut corners to find tenants and get bitten.’ The understaffed court system in Britain means repossession cases can take five months, leading to ‘landlord rage’. Mr Shamplina thinks buy-to-let comes down to ‘a number-crunching game and the sooner landlords cam get the bad tenant out and recoup some of their money, the better’. Six months ago, 39-year old nurse Juliet Hunt rented her £117,000 two-bedroom terrace house in Watford, Herts, to a young woman on housing benefit. The tenant paid the first month's rent of £800 and one month's deposit upfront, but Juliet was dismayed when the agent who found the tenant took his cut straight away. ‘My tenant didn't pay any rent for months and left the place in a total mess when we finally got her out,’ says Juliet. ‘I am owed £5,000 in rent and had to spend £2,000 to redecorate the place. It cost £250 just to have the rubbish removed.’ Juliet paid Landlord Action £570 to serve a notice and take action against the tenant. She has decided to get out of buy-to-let and is selling the house. ‘This shouldn't happen to anybody,’ she said. ‘The government should change the law. At the moment, everything seems to be stacked in favour of the tenant.’ So how landlords escape from the tenant from hell? A good agent, who will vet prospective tenants and protect your interests if things turn sour, in an excellent starting point. Tim Hyatt, head of lettings at agent Knight Frank, advises you to ensure any agent you use is registered with the Association of Residential Lettings Agents (ARLA) or the National Association of Estate Agents (NAEA). Members of both adhere to strict codes of best practice. ‘Tell tale signs of a bad tenant include a reluctance to provide references and the bank saying it has no knowledge of this person,’ Hyatt says. ‘Use a credit agency to dig deeper if you aren't satisfied with their references, or you can even ask for six months' or a year's rent upfront,’ he suggests. Hyatt adds that it is best to meet your prospective tenant ‘and go with your gut reaction’.
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