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  • Legal FAQs

    I'm in a legal Jam

    movieman

    Yes the issue that causes LL so many devastating losses is the eviction one

    The County Court service is overwhelmed with eviction cases

    If you don't have RGI then you are on the hook if ever you have to evict

    Remember RGI only works in cases of rent arrears

    Therefore for RGI to work you would need to increase the rent so that they default due to unafforbility

    There are many nuances that may pertain to your exact situation

    Which is why we are all referring you to Landlord Action!!!

    S 8 only works when the tenant is 2 months in arrears

    That means 1 month and 1 day because if rent is due monthly in advance then on after 1 month and 1 day the tenant is in arrears by 2 rent payments

    If the tenant paid rent in arrears you would have to wait for 2 months before you could issue a S 8

    Personally I wouldn't bother trying to sort this out yourself

    Use LL Action and get rid of this tenant ASAP!!

    Try and source a tenant who can qualify for RGI or a guarantor than can

    If you can't afford to pay a mortgage etc for about 9 months then you need RGI

    This naturally limits the tenant types you can take on

    Perhaps you didn't consider this factor when originally investing

    Too few LL understand how vulnerable they are to the eviction laws

    I used to be one of them!!!!

    I soon learnt!!

    RGI saves you having to waste your contingency funds on one tenancy

    Of course if they are used then you will need some more for the next tenant who might turn out to be a wrongun!!??

    Only you can determine the level of business risk you wish to take on

    Last year over 150000 LL had to evict tenants

    380000 LL lost their properties mostly caused by evictions taking so long and the LL NOT having funds to pay thre mortgage; so were repossesed

    This LL is NOT as easy as they make out

    Your whole financial situation is based on whether a stranger will pay you rent and won't need to be evicted

    Even with the best referencing you can still end up with a wrongun

    Could you afford or would you wish to afford the costs of a wrongun tenant!!??

    Only you can make that decision

    It is your business after all!!!

    Good luck with making your future business decisions!!


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    movieman

    There is NO such thing as a 6 month tenancy with a 4 month break clause

    A tenancy can be for as long or as little as you wish

    HOWEVER you many ONLY seek to give notice to a tenant after 4 months of a tenancy have elapsed via a S 21 process

    To be able to use the S 21 process you need to protect the month rent you are holding

    I suggest you protect the 2 months rent as a deposit and accept 1 months rent in advance as per your AST

    But this time protect in mydeposits where YOU hold the money

    Get is out of DPS ASAP if using a custodial scheme


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    movieman

    There is NO such thing as a 6 month tenancy with a 4 month break clause

    A tenancy can be for as long or as little as you wish

    HOWEVER you many ONLY seek to give notice to a tenant after 4 months of a tenancy have elapsed via a S 21 process

    To be able to use the S 21 process you need to protect the month rent you are holding

    I suggest you protect the 2 months rent as a deposit and accept 1 months rent in advance as per your AST

    But this time protect in mydeposits where YOU hold the money

    Get is out of DPS ASAP if using a custodial scheme


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    I do admit to going in to this a little bit blind and thinking that people pay their rent as a priority. Also I wasn't aware of the difficulties of eviction.


    The s21 route is a blessing for landlords. I've done a little research and the s8 route appears to be weak. Example tenant can claim disrepair at the 11th hour and throw the case out of court.

    I've pencilled in approx £7k cash loss and £6.3k of lost profit on this one. Alas a deeply painful and expensive lesson.


    RGI

    Is my understanding correct. The references come back satisfactory then RGI is purchased then if the tenant falls behind in the rent I can claim. Or is it only after the issue of a section 8 does RGI pay out. I'm assuming there is some level of protection for the RGI company to stop people making up RGI claims?

    Landlord action

    Thanks for the recommendation. I've contacted paul and will be using them to evict if the situation arises the idea of going alone is what has got me in this mess in the first place. So by using their service at least I can get it right first time.


    Sourcing better tenants

    Totally agree, going forward I'm going to be much more selective.


    Apologies if I wasn't clear it's a 6 month fixed term with 4 month break clause


    At the moment the DPS is holding 1 month Deposit and I have received 1 month in advance. Tenancy started at the beginning of Feb 16. Unfortunately the only way to get the cash out of the custodial scheme is for it to be repaid to the tenant then tenant has to pay it to you. If he receives the deposit refund it certainly won't be coming back to me lol.


    Thankfully I've managed to serve all the relevant documents as I went round to the house with a friend and was about to post them through the letter box and then he opened the door. Everything served and managed to get him to sign a ‎checklist to say he received them so that has talen a huge weight off my mind.

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