Best Excuses.

[Carryon Regardless]

I've had all the excusues as to why T's are having issues with paying the rent. Some are so ill thought out they don't get more than a sly smile.

Recently a new one, to me anyway. The T's company (a Stock Broker) are under investigation by the FBI so he is in limbo as he hasn't lost his job but he isn't working and getting paid.

Who can top that one?

 

[Melboy]

Why does it take so long to evict a non paying tenant is what I would like to know?

A friend of mine has lost £7,000 in rental income going back to last August. The tenant's had no intention of paying any more rent and there was not any reason for them to not pay either.  The cost of evicting them means a total of nearly £10,000 lost when added up.

The property was let through an LA as well so all the correct details relating to the landlord/tenant law were in force before and after they took occupation.

[Richlist]

Melboy......in my opinion that's the wrong question.

I prefer to approach the problem from a different direction. 

My Question....

Why don't landlords hope for the best but assume the worst and take rent guarantee insurance or a home owning guarantor ?

[Grampa]

I think one of the problems is some landlords choose to self manage which isn't a problem in itself if they have a certain level of knowledge to cover the basics. But when rent issues and excuses start flying about they get overly involved with the tenants problems and listen to and believe all the excuses given. 

I have seen it load of times with clients coming to me to sort their (self managing) tenancies out and 90% of the evictions on "cant pay we're take it away" appear to be self managed landlords and the arrears amount to the many thousands. 

It doesn't cost to serve a s8/s21 at the first or second sign of trouble if done yourself and then to have the time to resolve the problem before you need to act on it. 

It seems many landlords take/believe  excuse after excuse before serving notices and then find they are 4-6 months up the road without rent before serving s8/s21 which then means another 4-6 months before getting possession.

There is a good argument for RGI for some landlords especially one property self managing ones who cant afford to have a break in the rent payments but too many see it and agent fees as a waste of money.

[Carryon Regardless]

Grampa I see you as being conscientious and up to date with the ever changing legislation. Many A's aren't and many of the larger ones will employ less able front line staff that don't really help situations. When things go wrong the owner is still as exposed as if they had managed themselves. An example i remember was with the deposit legislation, where A's screwed up the owner still suffered the penalty.

I don't use RGI but do look for the HOG, the 'G'uarantor has saved my situation a few times.

As for excuses, I don't care. I'm in business and whilst there is 'sometimes' room for compassion I don't see myself as thier banker, social worker or any other type of support they like to fall back on. I do see that there can be benefit to having some involvement with T's, in that understanding their situation and personality is a useful tool to making my decisions. It's also good to learn from each about the antics of another.

No sympathy toward the FBI T's, they abused from day 1 by having undeclared dogs that specifically require permission. If the rent faulters this month (the 20th) I serve the S21 and write to the HOG.

Another has changed employment and has faultered a little, this month he needs to bring his account up to date or the same for him.

It's not always intelligent to act swiftly, each is a judgement call.

 

"I'm in Cornwall so I don't know what has happened with the rent payment, I'll look into it when I get back."

2 weeks later, "I've an appointment with HB, I'll get this sorted and back dated." I knew the flat to be already mt, and when she had departed but I left it for 3 months anyway. The HOG paid up over the next 9 months, with or without T assistance wasn't my concern. It's often easier to be paid for an mt property.

 

 

[Melboy]

2 hours ago, Richlist said:

Melboy......in my opinion that's the wrong question.

I prefer to approach the problem from a different direction. 

My Question....

Why don't landlords hope for the best but assume the worst and take rent guarantee insurance or a home owning guarantor ?

My friends had RGI with Direct Line but DL refused to pay out due to the fact the LA had cocked up all the paperwork and had actually permitted DSS tenants to occupy the property without full and proper checks. The tenants basically lied but of course no action can be taken against them other then a CCJ which will look good to match their other 2 they have which are not related to rental/housing.

They are now in a council funded 4 bed house. You can't get any money back from non paying tenants if there is no money.

[Carryon Regardless]

That's the greatest problem with insurance, you'll never know if it will provide the expected cover until you attempt to claim. They are increasingly wrigling out of making payment and often with the poorest of excuses.

I attempted to claim for broken skis and goggles from RBS travel insurance, used them for many, many years as associated to a premium account. They refused as I hadn't reported the incident. To whom they couldn't specify, the policy doesn't detail the requirement. The legal route would be more costly then the skis so they win.

[Richlist]

43 minutes ago, Melboy said:

My friends had RGI with Direct Line but DL refused to pay out due to the fact the LA had cocked up all the paperwork and had actually permitted DSS tenants to occupy the property without full and proper checks. The tenants basically lied but of course no action can be taken against them other then a CCJ which will look good to match their other 2 they have which are not related to rental/housing.

They are now in a council funded 4 bed house. You can't get any money back from non paying tenants if there is no money.

Nothing but nothing is 100% foolproof.

What's really important is that you don't allow this one example of RGI not paying out to colour your opinion of RGI. It's a very, very useful tool that should be in every landlords tool kit.

[Richlist]

35 minutes ago, Carryon Regardless said:

That's the greatest problem with insurance, you'll never know if it will provide the expected cover until you attempt to claim. They are increasingly wrigling out of making payment and often with the poorestof excuses.

I attempted to claim for broken skis and goggles from RBS travel insurance, used them for many, many years as associated to a premium account. They refused as I hadn't reported the incident. To whom they couldn't specify, the policy doesn't detail the requirement. The legal route would be more costly then the skis so they win.

But I suspect that you still buy travel insurance when travelling abroad. You probably just take more care to check the insurance small print.

[Richlist]

1 hour ago, Carryon Regardless said:

Grampa I see you as being conscientious and up to date with the ever changing legislation. Many A's aren't and many of the larger ones will employ less able front line staff that don't really help situations. When things go wrong the owner is still as exposed as if they had managed themselves. An example i remember was with the deposit legislation, where A's screwed up the owner still suffered the penalty.

I don't use RGI but do look for the HOG, the 'G'uarantor has saved my situation a few times.

As for excuses, I don't care. I'm in business and whilst there is 'sometimes' room for compassion I don'r see myself as thier banker, social worker or any other type of support thye like to fall back on. I do see that there can be benefit to having some involvement with T's, in that understanding their situation and personality is a useful tool to making my decisions. It's also good to learn from each about the antics of another.

No sympathy toward the FBI T's, they abused from day 1 by having undeclared dogs that specifically require permission. If the rent faulters this month (the 20th) I serve the S21 and write to the HOG.

Another has changed employment and has faultered a little, this month he needs to bring his account up to date or the same for him.

It's not always intelligent to act swiftly, each is a judgement call.

 

"I'm in Cornwall so I don't know what has happened with the rent payment, I'll look into it when I get back."

2 weeks later, "I've an appointment with HB, I'll get this sorted and back dated." I knew the flat to be already mt, and when she had departed but left it for 3 months anyway. The HOG paid up over the next 9 months, with or without T assistance wasn't my concern. It's often easier to be paid for an mt property.

 

 

What an excellent post CoR.

Agree 100%