Jennifer Posted March 9, 2007 Report Share Posted March 9, 2007 Husband & I newbie landlords so I often read the forum to keeps our wits about, but never saw this one coming. Brought a new build 2 bed ground floor end flat in North East Nov2005. Nicely fitted our own laminate to the open plan kitchen/living area, had rest of place carpeted and opted to fully furnish it to a modern clean image, as most of similar in area all unfurnished. Went via letting agents Introduction service to get our 1st tenants in March06 & decided to manage it ourselves (dispite living & working over 200 miles away, parents in area so happy to assist). All was well until 1 of the 2 tenants lost job so can't pay rent (2mths). When their 6moths AST came to end we offer them options to end contract or only continue if renew another new 6mths AST because let them spread their arrears over 6months on top of their rent. Fine till tenant B done a runner in Oct06, told tenant "A" breached their contracts so need to leave asap, but wanted 2 stay so found tenant "C" to continue, which we made them sign a revised contract to reflect change of names. (meanwhile can't contact "B") End Jan07 noticed "C" haven't paid rent so contacted them, reply was decided to leave as fallen out with "A". Advised they must give us notice as contract is until end Feb07. Arranged to all meet up but never shown, then "A" tells us "C" returned few days beforehand & moved out all her stuff & never left keys. Again asked "A" as contract ends soon does she want to renew & cover whole rent or leave end of FEB, which opted for the latter. Hubby does the management, I do any paperwork. As he's away when "A" leaves I'm having to see to it & met Tenant for 1st time & seen the flat since brand new. Aware not tidy but since they're ok for viewings in evening for new tenants just let it pass. Not until the handover during daylight (they kept postponing so got partner to go through stuff with me) did i see extent of the "untidiness" and wear & tear to the flat. Got challanged wot did i expect when it's being lived in. hmm! made them clear out rubbish (2 bags full) before going through Inventory. There was no power - checked fused nothing wrong asked for copied of bills to make transfer etc, got story how "B" owed "A" money so arrangement was "B" continued to pay electricity etc (funny as we can't get in touch with "B" over rent arrears !) . But still don't explain why power is cut, unless not paid. Just wanted the place back so told them that "A" can discuss further with Hubby when he returns in couple days time & got a key back (not full set). Upon investigation, power was cut due to non payment of bills from day 1, our own stupid fault to never followed through change of name or question the amount due to us prior to letting. So bills & warnings have been going to property addressed to us which obviously the tenant(s) must had received & disposed of. Checked letter box relatively empty so story that "A" don't have key for box since "C" left is a bit unbelievable. Next day "A" contacted us to ask if found our wot happened to the power, gaved them chance again to get their story straight - said it's all dealt by "B" and never had any bills etc via the post, which I told them can't be correct. I said no more & advised we'll be back in touch. We've now changed locks cos can't secure property as no power to alarm, can't get reconnection until fortnight's time. Can't clean or refurbish for viewings or new tenants cos all run on electricity. Cant really take anymore time off work so have to work around 400+ miles round trip during weekends until it's fit for rental again. Just sick to the bone sorting this out & finding advice how to chase up each tenant on their arrears & costs. Thinking of going to small claims court but I believe we still need to prove we given chance for each tenant to repond & resolve their monies, so gonna be long drawn process but have drafted letters to last known addresses & will try mobile no's again, but doubtful will get any replies. Must sleep but grateful if anyone has words of wisdom - apart from it's a very expensive lesson being learnt (trust no-one). Link to comment Share on other sites More sharing options...
Trenners Posted March 9, 2007 Report Share Posted March 9, 2007 Hi Jennifer, This must have been an expensive lesson. My advice, for the future, is to choose a good, local, letting agent that you trust to manage the property for you on an on-going basis. You might have saved yourself a few pounds initially by using the "find a tenant service" and travelling 200 miles to manage the property - but actually you have cost yourself thousands and thousands of pounds. Most of the problems that you have documented have been caused by your kind-heartedness as well as your failure to manage the tenants and the tenancy on a day-by-day basis. I would hope that a good letting agent would have prevented some of the problems from occuring (although we often read nightmare stories about incompetent letting agents as well <grin>). Good luck, Mark Link to comment Share on other sites More sharing options...
odecar Posted March 9, 2007 Report Share Posted March 9, 2007 I'd agree with Mark and say go with local agent. As you said your parents live in local area so get them to ask who is reputable. Bad News is that if names not changed relating to Utilities then its your responsibility. Link to comment Share on other sites More sharing options...
andyask Posted March 20, 2007 Report Share Posted March 20, 2007 "All was well until 1 of the 2 tenants lost job so can't pay rent (2mths). When their 6moths AST came to end we offer them options to end contract or only continue if renew another new 6mths AST because let them spread their arrears over 6months on top of their rent. " This was the mistake - The tenant clearly could not pay his rent yet you still offered him a chance to stay there and effectively supplied an interest-free loan in the form of arrears repayments over the next few months. I do wonder how you thought he was going to pay the rent. Link to comment Share on other sites More sharing options...
Jennifer Posted March 20, 2007 Author Report Share Posted March 20, 2007 Thanks all for your advice, guess I'll mention that we only allowed the renewal to take place because tenant "B" got new job & 1st pay was when the "new" rent was due - which we did get reference & copy of job contract from the company too before signing the next 6 mths - if anything we did get 2 months pay without further issues until they done a runner, so caught us out that way. Don't believe we been completely naive from the start as had done tonnes of research & seeked advice from colleagues/friends who are/have been landlords, bit I do believe our just lack of experience to recognise problems & pitfalls when they occur may have nipped it in the bud better, ain't helped that we have personal problems of our own at the end of the year so yes attention wasn't fully focused on the flat - always easy to say in hindsight. The decision now is if we should go with a letting company as in area most have now closed or changed to "introduction service" only, & few taking on "management" service are the big national agents which have very high fees. Had considered selling but thats a struggle too as sudden influx of similar "new" properties. so it's a loose loose situation. What have people done in similar situation and what helped you make this decision ??????????? Link to comment Share on other sites More sharing options...
Melboy Posted March 21, 2007 Report Share Posted March 21, 2007 Good question Jennifer......................... I got so pi$$ed off with a property I had rented out........3 lots of bad Tenants on the trot over 2 years so I sold the place in a fit of temper and bought another property somewhere else.....problem solved....well to me it was Funny enough I have never had any problems since! Link to comment Share on other sites More sharing options...
Trenners Posted March 21, 2007 Report Share Posted March 21, 2007 Hi Jennifer, Well my advice is to either sell the property or use a letting agent offering a fully managed service. I understand, from your posting, that there are only a few national agents in the area offering this service and I appreciate your comments regarding the high fees that these agencies charge. However, firstly remember how much money you have recently lost by trying to run the tenancy yourself, secondly remember that your biggest expense is going to be having the property empty, tenantless and earning no rent at all and thirdly, learn from your mistakes. If you decide to re-let then pay the national agent to manage the property for you otherwise you seriously run the risk of getting into a similar situation with problem tenants and mis-management in the future. Good luck and let us know what you decide to do ..... Mark Link to comment Share on other sites More sharing options...
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