Amateur Landlords At The Highest Levels Ever

Amateur Landlords At The Highest Levels Ever.

It has been reported this week by the National Landlords Association that 70% of the Private Rental Sector is now made up of amateur landlords. They on average have 4 properties each and generate an average £31k in income.

I can well believe this. The amateur landlords as defined above are looking to build a portfolio. In my experience this is usually to try and gain financial security. This will enable them to be able to break away from their full time employment and have an easier life.But spare a thought for the other type of amateur landlord. the landlord by default.

I have noticed a huge increase in instructions for evictions over the last five years from the landlords that only have one property and have run in to financial problems, because of non-paying tenants. We are talking about landlords, that have moved out of the property and did not plan to rent it out but circumstances led them to find a tenant, so that they can pay the mortgage. In a lot of cases they do not have a buy to let mortgage and the lender has not been informed of the rental, which can be a breach of mortgage terms.

In a lot of scenarios where we have been instructed, we ask the landlord how they referenced the tenant. The all too common answer is that the referencing was not carried out property. Vital information like bank statements/ financials, employment or previous landlords references are missing. The landlords rush through the rental, because they fear void periods. This causes problems with a non-paying tenant further down the line.

We are instructed frequently, when a landlord wants to evict the tenant under Section 21. This is typically because the landlord wants to sell the property, historically the market has risen and they want to cash in their chips, or pay off debts.  At the moment I would say we know of over ten cases, where the landlord is in arrears with his mortgage and the bank are carrying out mortgage repossession proceedings. It’s often a race against time for us to gain possession before they do, so the landlord can sell, rather than taking a massive hit with the bank selling at a significantly reduced rate.We also have cases, where the landlord will say, ” I’ve had enough of being a landlord, it’s too much grief, and I want to sell. ” Because they have experienced the tenant from hell, been a victim of the housing benefit caps, or their LHA tenant has kept the rent and not passed it on. Often simply there has been too much regulation.

My advice for the landlords I’ve talked about in this blog. If you are a landlord, understand your responsibilities. Make sure you fully reference the tenant via a tenant reference company and do not rush your decision. Get rental insurance and instruct a managing agent to let and manage the property. This is vital because a lot of the time landlords do not simply have time to deal with issues during a let, which can cause arguments with the tenant.

Precise Treatment Reduces Pain

Detail needs experts. Expert time is worth it when it saves you a costly mistake. Main objective: Get the property back. Best action: Very precise treatment.

Serving a notice is actually the most important part of the possession process.

It isn’t complicated but one tiny error can cause dreadful problems.

That’s why we say, don’t DIY and don’t use internet amateurs. It’s not worth it.

1. Compliance Errors
If the tenant doesn’t leave at Step1, the notice had better be valid. Because then it has to go to court. Any little error can get a case thrown out. And you have to start all over again.

2. Attempting Short-Cuts.
In an effort to be quick, some internet services aimed at landlords are using short-cuts around the process. But if the tenant doesn’t leave (50%) these practices can backfire at court and the case thrown out.

3. Trying to Save Pennies.
Internet services have mushroomed and landlords can expect to get what they pay for. To get the process done PROPERLY it takes a certain amount of time for an expert to look over a file and be accurate. Our fees cover that expert time.

Chasing courts for dates, arranging advocates and preparing court papers is time consuming. Especially if you’ve never done it before.

Some landlord and agents have served notices themselves. They believed they were saving a few pounds but it often ended up costing them more.

If you lose a claim, the court can order you to pay the tenant’s defence cost, which can run to hundreds or thousands of pounds.

Our in-house Solicitors are there to get your property back as fast as they can. And we protect landlords and agents from themselves.

As experts, we know that in the rush to get things done, errors can happen. And those errors can can come back later to mess up your case – and the whole process has to start again.

You can speed things up – give us accurate information quickly. Help us to help you.

There are services on the web who will prepare papers BUT they get you to pay the court-fee separately and get you to sign the court papers – so in fact they don’t represent you!

If your notice (at Step1) wasn’t drafted or served correctly you risk wasting your court fees and losing a whole lot of time because of a small error.

We won’t let your case anywhere near a court until we have checked every little detail. To make sure you don’t waste time or money, at Step-2 we first only charge part of the fee.

If your notice is fine, then you just pay the balance of the fee and we issue the claim. If there is a problem with your notice or paperwork, we will advise you what to do next.

Courts take the view that possession proceedings can make someone homeless. So they are very careful. If there’s any error in the notice, they throw the case out. It’s the process. Get it right or lose.

If the notice is invalid, you have to start all over again. The weeks or months you’ve waited are wasted. If there were rent arrears, there are now more.

If there weren’t rent arrears, they might now start. More fees. More lost rent. And still no possession. Tenants can be alerted to making a counter-claim.

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