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News Article

"In May, you MUST give your Tenants the Renters Rights Information Sheet or

YOU RISK  - £7,000 FINE  PER TENANT PER PROPERTY."READ MORE

‘Career Rent Criminals’ Hijack Coronavirus Laws To Their Own Ends

20th Sep 2021

A lettings agent has branded an ever increasing band of tenants, as 'professional crooks’ who are using the pandemic’s law changes to get away with not paying their rent.

Image credit: Unsplash

The director of a leading agent, Marc von Grundherr says: “The situation for landlords throughout the pandemic has been shocking and while eviction notice periods have now been reduced to four months, many continue to lose thousands in rental income every month due to rogue tenants and the long delays suffered while trying to evict them.

“We’re talking about professional crooks who have taken severe advantage of legislation designed to support those who are actually suffering financially and are in need of support.

“We had one particular case where a tenant moved into a new property at [London’s] Television Centre in October 2019 and only ever paid the first month's rent and nothing thereafter.

“The eviction hearing was on March 30 this year and we couldn’t get a bailiff appointment until August 25. The poor owner suffered a loss of over £50,000 plus to add salt to the wounds the tenant stole all the landlord's furniture.

“We have another property we are yet to repossess as the tenant has claimed on three separate occasions when the bailiff has been scheduled that both her and her partner have COVID-19. Therefore the eviction can’t take place adding a further two or three weeks for a new bailiff appointment in the process.

“These guys are utilising every trick in the book and so the reality is that many evictions are stretching on far longer than a year.”

The agents has estimated that when the government first introduced the six month period before eviction notices could be issued in the first throes of the pandemic, the UK average monthly rent was around £985. Those unlucky landlords who unknowingly housed rogue tenants would have lost £11,280 rental income over twelve months.

The agent also says rogue tenants’ financial impact of rental arrears is not the only loss that landlords could have to suffer as there are also other costs incurred by their actions.

‘Career rent criminal’ tenants are likely to cause major damage to properties with landlords having to pay out many thousands of pounds to refurbish and refit kitchens and bathrooms, as well as possibly having to replace windows and to redecorate; to rectify issues the cost to landlords are in the region of £20,000+.

There are of course further legal costs of an average of £3,000 to either reclaim damages or to ‘force through’ evictions. The agency calculates that the average cost for a landlord to kick out a rogue tenant could be as much as £35,558.

He also says that for London landlords the cost to evict rogue tenants because of higher rental values could be on average £43,574.

von Grundherr adds: “Rogue tenants are a landlord’s worst nightmare and unfortunately this nightmare rarely ends when they are finally evicted. More often than not, the property is in severe disrepair when it is finally repossessed and this is sometimes done out of spite, or simply to strip the property of materials they can then sell on.

“What’s more, the landlord will have usually suffered arrears prior to starting the eviction process and is still required to make mortgage payments out of their own pocket during a period where their property is generating no income.

“Unfortunately, legislative changes in recent years and particularly during the pandemic have focussed solely on the wellbeing of tenants and so the backbone of the UK rental market has been further weakened as landlords are left high and dry to pick up the pieces.”

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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/