WHAT IS A LANDLORD TO DO?
Whilst mortgage lending has slowed to first time buyers and the numbers of mortgages granted hit a record low last year the residential letting market has been increasing.
In 2011 it is expected that this market will again see strong growth and the possibility of new residential landlords coming to the market as interest rates remain low.
However, many landlords do not expect the issues they face when a tenant falls into serious arrears and they are forced to take the step of evicting a tenant because of non-payment of rent. Alexander Udé at Armitage Sykes highlights the issues.
On average, it takes 6-7 months for a landlord to regain possession of their property during which the tenant is permitted by law to remain in the property effectively rent free. I say rent free as there is no requirement or condition imposed on the tenant to pay rent during the time between serving notice to the tenant and the date the tenant is evicted.
Indeed many feel that when it comes to the Courts, tenants are favoured over the landlord when a landlord pursues an eviction.
There is a strong likelihood that further arrears in rent incurred during this time, will not be paid by the tenant. The landlord could embark on further legal proceedings, but needs to consider the risk that a favourable Court Judgment does not necessarily equate to payment from the tenant.
In all too frequent circumstances, the landlord must face the stark reality of having to cut his/her/its losses and abandon any further attempts to recover payment from the tenant.
The Government's proposed closure of 54 County Courts will result in the overburdening of the remaining Courts.
Without radical review of the process to include a more positive approach to the landlord's ability to obtain possession, landlords will continue to suffer.
So what is a landlord to do? Choosing the right tenant is now a must and if you do have problems act quickly.
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