Ok, this isn't going to be pleasant reading for many of you Clear Property Investment clients - and potential investors - out there.
But it has to be said - bad tenants DO exist and are the bane of many a property investor's life.
By 'bad' the staff here at Clear Property Investment mean tenants who don't pay their rent on time and repeatedly ask for extensions citing a multitude of improbable excuses ie I had to pay a big tax bill this month so can I double-up and pay you next week instead?/I'm freelance and didn't get much work this month/I had a huge vet's bill to cover...you really can do without this and, much as you're a nice person and understand 'life' does get in the way sometimes, YOU have to pay the mortgage on time. And you always do. But that's because you prioritise. Problems arise when your tenant doesn’t see you as his priority.
Problems don't just stop at unpaid rent, of course. There's the tenant who fails to take care of your property - he's allowed the grass to grow waist-high, there's a broken window and he hasn’t told you or the electricity has just been cut-off because he didn’t pay on time. Maybe he's made enemies with ALL the neighbours? Whatever. Issues are arising and you've had enough. You want to get rid of him, move him on and get the next tenant in. So how do you go about it?
Well, to be honest, it doesn't make good reading. It's not just a case of going round and asking him to leave. There are various steps you must take if you want this to be legal so it doesn't result in the tenant taking YOU to court.
Myra Blaik, Operations Manager, Clear Group Scotland Ltd, said: "Don't, by any manner of means, go charging round to your property and order the tenant to leave right there and then. This really will get you into difficulties.
"First off, you have to understand the law. Take the time to do this, it's well worth it. Write your tenant a legal notice. If he fails to acknowledge this then, unfortunately, you're looking at court proceedings. As a last resort it's a case of calling in the bailiffs.
"But really, it makes sense to get things right in the first place. That means drawing up a water-tight lease which outlines both your rights and those of the tenants’ - in clear and undisputed terms. It goes without saying, get this checked over by a lawyer. "
Moira advises your first step should be to visit the tenant and tell him he's breaking the terms of your lease. Specify those terms. Then make the whole thing official by putting it down in writing via a letter - obviously retaining a copy for yourself.
Still no joy? Then don't take any chances and look for legal representation. A lawyer will send official documentation threatening eviction. If this fails to have the desired effect and the tenant continues with their unwanted behaviour then it’s on to court proceedings. This can be costly and you're looking at a matter of months rather than weeks. On the other hand, there are a number of specialist eviction services which can do all this for you. In terms of your time and saving you sleepless nights, this can actually be a good option.
"An alternative is to buy out the tenant’s lease," added Moira. "This really will hit your pocket but at least you won’t antagonize them meaning any damage to your property should be minimal. Remember your tenant is in possession of your assets. To be on the safe side you could get a court order insisting any damage they inflict must be paid for."
So what's the moral of the story here?
Leasing a property should be profitable, easy and worry-free - but it's not guaranteed. ALWAYS do your homework. After all, there's a lot more at stake here than just being Top of the Class!
Ends
But it has to be said - bad tenants DO exist and are the bane of many a property investor's life.
By 'bad' the staff here at Clear Property Investment mean tenants who don't pay their rent on time and repeatedly ask for extensions citing a multitude of improbable excuses ie I had to pay a big tax bill this month so can I double-up and pay you next week instead?/I'm freelance and didn't get much work this month/I had a huge vet's bill to cover...you really can do without this and, much as you're a nice person and understand 'life' does get in the way sometimes, YOU have to pay the mortgage on time. And you always do. But that's because you prioritise. Problems arise when your tenant doesn’t see you as his priority.
Problems don't just stop at unpaid rent, of course. There's the tenant who fails to take care of your property - he's allowed the grass to grow waist-high, there's a broken window and he hasn’t told you or the electricity has just been cut-off because he didn’t pay on time. Maybe he's made enemies with ALL the neighbours? Whatever. Issues are arising and you've had enough. You want to get rid of him, move him on and get the next tenant in. So how do you go about it?
Well, to be honest, it doesn't make good reading. It's not just a case of going round and asking him to leave. There are various steps you must take if you want this to be legal so it doesn't result in the tenant taking YOU to court.
Myra Blaik, Operations Manager, Clear Group Scotland Ltd, said: "Don't, by any manner of means, go charging round to your property and order the tenant to leave right there and then. This really will get you into difficulties.
"First off, you have to understand the law. Take the time to do this, it's well worth it. Write your tenant a legal notice. If he fails to acknowledge this then, unfortunately, you're looking at court proceedings. As a last resort it's a case of calling in the bailiffs.
"But really, it makes sense to get things right in the first place. That means drawing up a water-tight lease which outlines both your rights and those of the tenants’ - in clear and undisputed terms. It goes without saying, get this checked over by a lawyer. "
Moira advises your first step should be to visit the tenant and tell him he's breaking the terms of your lease. Specify those terms. Then make the whole thing official by putting it down in writing via a letter - obviously retaining a copy for yourself.
Still no joy? Then don't take any chances and look for legal representation. A lawyer will send official documentation threatening eviction. If this fails to have the desired effect and the tenant continues with their unwanted behaviour then it’s on to court proceedings. This can be costly and you're looking at a matter of months rather than weeks. On the other hand, there are a number of specialist eviction services which can do all this for you. In terms of your time and saving you sleepless nights, this can actually be a good option.
"An alternative is to buy out the tenant’s lease," added Moira. "This really will hit your pocket but at least you won’t antagonize them meaning any damage to your property should be minimal. Remember your tenant is in possession of your assets. To be on the safe side you could get a court order insisting any damage they inflict must be paid for."
So what's the moral of the story here?
- Get the right tenant in the first place
- Always do your research
- Listen to your 'gut' feeling
- Check your legal rights
Leasing a property should be profitable, easy and worry-free - but it's not guaranteed. ALWAYS do your homework. After all, there's a lot more at stake here than just being Top of the Class!
Ends
Company registration number: SC344923
272 Bath Street, Glasgow, G2 4JR
