Most tenants are likely to be decent people with whom you can maintain a good relationship, however, on occasion you may have to deal with difficult tenants who test your patience.
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This can be stressful, tiring and even costly if something goes seriously wrong, especially if you’re inexperienced.
How to avoid difficult tenants
Before taking on any new tenants, complete a tenant screening process to weed out those who might cause problems in future. Check various aspects of their background to get a full picture such as their credit history, employment status and references. If they’ve been evicted in the past or had issues paying the rent on time, this is an immediate red flag.
In addition, check that they can legally rent a UK property by going to the government website and following the relevant procedures.
Should difficult tenants slip through the net, one or more issues may arise and it’s important to deal with them professionally and legally.
Rent arrears
If your tenants are continually late paying the rent and arrears accumulate, first ask them why, as there may be a genuine reason. Maybe they’ve lost their job, or they’re involved in a maintenance dispute, leading to cashflow problems. This may be a temporary situation, so ask them to make partial payments for now, while keeping you informed of any changes in their situation.
When they can’t afford to pay a lump sum to clear arrears in one go, make a monthly repayment arrangement to chip them away gradually. However, if they don’t make any effort to pay the rent, it may be necessary to ask them to leave voluntarily. When all else fails, instigate eviction proceedings as a last resort.
Damage to your property
An important part of property management is understanding landlords’ rights and drawing up a tenancy agreement outlining who’s responsible for what. For example, if you rent out a furnished property and the tenants complain your landlord furniture needs replacing, it’s your responsibility if it has deteriorated through age.
However, if they’ve broken an item through their negligence, such as by having a party, it’s down to your tenants to pay for the damage.
Anti-social behaviour
If you receive a complaint from your tenants’ neighbours or the environmental health department of anti-social behaviour, such as noise nuisance, try and resolve it amicably.
Ask your tenants to speak to their neighbours to come to an agreement. Have a clause in the tenancy agreement relating to anti-social behaviour and refer to this if your tenant refuses to resolve matters.
When the neighbours end up calling the police, this can lead to more serious consequences, such as an anti-social behaviour order being issued by the courts, eventually necessitating eviction. It’s better to try and deal with it early, rather than letting it reach this stage.
Tenants are subletting
It’s perfectly acceptable for your tenants to invite a friend to stay for a short period, or to have a family member look after the property if they go on holiday. However, when you suspect tenants may be subletting part of the property without your knowledge, ask them what’s happening.
A tenancy agreement should include a section outlawing subletting. While you’ve screened tenants, you have no idea about the person they are subletting to.
Behave professionally
Always be professional when dealing with tenants, conducting yourself in a friendly manner, while following the law.
Keep good channels of communication open and never lapse in terms of your conduct, even when they’re not behaving in the same manner. This is the best way of dealing with a dispute quickly.
The tenancy agreement is a legal document, and tenants are obliged to adhere to its requirements, but it’s best to enforce the rules in a conciliatory manner, rather than through disputes.
Be aware of issues
Regular property checks to look out for maintenance issues are important, normally every three to six months.
When you wish to visit the property, give the tenant at least 24 hours’ notice. It may seem a hassle carrying out frequent checks, but it’s preferable to the alternative, when you may find you need an expensive repair.
Keep a written record
Document everything in writing including rent payments, arrears agreements, emails from the tenants, a synopsis of phone calls with the date and all maintenance issues.
If a problem isn’t resolved and you must take further action, there’s a detailed record of your actions to try and solve the issue.
Take out insurance
Always have the right landlord insurance policy for your rental properties before taking on tenants. If they cause any damage in future and won’t pay, or if they don’t pay the rent, the relevant insurance can save you from an expensive disaster.
Maintain good relationships
Have a relationship of mutual respect with your tenants and if they advise repairs are needed, listen to them and fix the problem in a timely manner.
Ensure jobs are carried out by a professional tradesperson, as a shoddy repair can cause disagreements afterwards. The tenancy agreement should advise on the repairs procedure so both parties can follow it.
Understand the law
Have a thorough knowledge of landlords’ legal rights and responsibilities to avoid misunderstandings.
Most rental properties are covered by an Assured Shorthold Tenancy under the Housing Act 1988. It agrees a fixed-term tenancy, normally of six or 12 months, although you can negotiate a longer period if you wish.
At the end of each fixed period, the tenancy will continue running automatically, unless you choose to take steps to terminate it.
The government website has plenty of up-to-date information on renting out a property and should be used as a landlords’ guideline.
Eviction notice
Sadly, some problems, especially with difficult tenants, are impossible to resolve. If you’ve done your best to be flexible, but efforts have ultimately failed, an eviction notice is your last resort. Under Section 21 of the Housing Act 1988, a landlord is entitled to regain possession of the property at the end of a fixed period by giving two months’ notice.
You should specify a date when the tenants must vacate the property. If they fail to do so, you can apply for a warrant for eviction or a possession order through the courts. The eviction process can be long, drawn out and complex, not to mention expensive if it goes to court, so this should always be a last resort when all else has failed.
Obtain legal advice specific to your situation from a solicitor before going ahead. You can also contact the National Landlords’ Association for advice. This is why keeping a written record of everything is important, as your case is more likely to succeed in court if you have records of all the problems.
Ideally, keeping your property in good shape and having ongoing communications with tenants will prevent a situation from ever reaching the eviction stage.