YOUhome Blog

Our Lettings business is very much seeing the trend towards monthly rents rising across Bournemouth and Poole. Whilst this is good news for landlords, it could mean that some tenants may become unable to meet their commitments. What if your tenant does not or cannot afford to pay the rent?

Should you encounter this situation, there are several steps you can take. Firstly, if you have a tenant who cannot afford to pay the rent, assess the situation carefully. Would you consider negotiating a lower rent to ensure you keep a good tenant? Further agent fees will be incurred if you need to find a new tenant. Would it not be more beneficial to reduce the rent by say, £30 per month, to resolve the situation quickly?

If you continue to have a tenant who cannot pay, keep the situation amicable. Show understanding and make arrangements with the tenant to move out, it is easier and less costly to remain approachable during this time. You do not want to create a difficult situation which could cause your tenant to stay within the property. At this point, you must make sure you issue the correct notices. 

Generally, the Section 8 route is used where there is some default on the part of the tenant. The most common type of default, during the term of the tenancy, will be non-payment of rent and you can initiate possession proceedings using this route. A court will require that the landlord, or his agent, is able to show evidence or proof of the default before it will order the tenant to move out. Keep in mind, there are certain grounds to meet in order to pursue this route. If the tenant has defaulted on rental payments, two full month's rent will need to be owed before you will be able to put this into effect. The tenant will then have two weeks to vacate.

It is recommended that you consult a letting agent for advice on issuing your Section 8 notices. A well-qualified ARLA agent will be able to advise you on all the correct steps to take. If your property is managed, your agent should be able to facilitate this on your behalf.

Remember that this is the worst case scenario: don't let it put you off letting a property. This happens in far fewer cases than current media coverage implies. Begin on a solid footing and make sure your letting agent obtains satisfactory references at the start of a tenancy. Make sure a good tenancy agreement is in place and fully executed. 

Finally, if you are relying on the income to meet mortgage payments, remember to take out rental guarantee insurance. The YOUhome Lettings team is always happy to offer advice on lettings issues. Do you have an issue you would like to chat over with us?  

Tags: letting agent, tenant, landlord, tenancy agreement