When you rent out your property, there’s always a small risk involved.
Even with thorough vetting, it’s possible that your tenant will start behaving badly.
You should try to stay calm and follow the necessary steps in this situation.
All is not lost, just yet!
Here’s a 9-step guide on how to deal with problem tenants in the UK.
1. Remind yourself of the contract in-place
Your first port of call should be to check any written contract. Usually, this is a tenancy agreement.
This document explains what is and isn’t allowed in your house. And you mustn’t deviate from this because it’s binding.
Double-check that your tenant’s problematic behaviour is against your agreement. Then get clarity on what the contract says you can do about this.
2. Speak to a solicitor
If you don’t have a written contract in place, you should speak to a solicitor.
They can advise you on common housing law in this scenario. Getting a contract written before you let out a house is always in your interest.
You should also contact a solicitor, when a contract exists. They can help you to look through it and identify the salient points.
Having this professional by your side will offer enormous peace of mind throughout the process.
3. Stay calm and professional
Don’t allow your emotions to get the better of you. No matter what happens, you must stay calm and professional.
You may need to justify anything you do in a court of law further down the line.
And if you’re respectful and follow the correct procedure, this can work in your favour.
A judge is more likely to view you positively. And the tenants could cooperate.
4. Keep a record of everything that occurs
You need to get as much as evidence as you can. Keep a record of conversations between you and your tenant.
And if damage is done to the house, take photos of it. This ensures that you aren’t relying on subjective opinions.
Any other documents that you can gather, will be helpful. This includes your tenancy agreement, or details about your tenant (including references).
Any financial transactions should be shown on printed bank statements.
If you suspect that your tenant may become problematic, then regular inspections could be a smart idea. This allows you to stay ‘on top’ of the situation before it gets out of control.
5. Create a financial plan for the foreseeable future
It’s difficult having awkward conversations with your tenant and encouraging them to behave correctly. But you also face a more pressing issue: financial survival.
You need to budget for the next few months. Your solicitor expects payment, especially if the eviction process goes to court.
And you’ll need to continue paying for your main property, even if your problematic tenant refuses to pay their rent.
A financial adviser can give you guidance at this point.
You may need to dip into your savings or find another way to increase your income. A short-term loan could work, although this has risks attached. Friends or family might also be able to help.
6. Don’t rush into court if you can avoid it
Taking your tenant to court shouldn’t be your first choice. As mentioned above, you need to be respectful.
And this includes trying to negotiate with your tenant, if possible. It may be worth bringing in a mediator.
Try to understand your tenant’s perspective. And then offer solutions that work for everyone involved.
It can save you money and time to do this. And your tenant is more likely to be amenable if you treat them respectfully.
7. Talk through all your options
Your solicitor or lawyer can advise you on your different options. There’s usually three that are on the table.
Allowing your tenant to continue living there
If you want your tenant to pay for damage, then it could involve taking them to court.
But if everything gets smoothed out, you might allow them to continue living there afterwards. It depends on whether the situation is untenable.
Filing for eviction
When there’s no hope of reaching an agreement with your tenant, you may opt for eviction. Just be wary of the costs and time involved.
You’ll need to pay your solicitor, for example. And gathering evidence may incur costs as well.
Selling the house with the tenant in situ
A cash buyer or auction company can sell your house with the tenant in situ. But the selling price will be dramatically lower.
A buy-to-let mortgage could be possible for investors as well. But this becomes difficult when your tenant behaves badly.
8. Initiate proceedings for an eviction (if necessary)
You should get a solicitor or lawyer to help you with this. You’ll need to complete paperwork and go through the court system. There’ll be a court date where you can present your case.
This can result in your tenant being forced to leave, if you’re successful. You’ll thus have control back over your home.
Talk through all your options and prepare for the costs associated with any route you take.
9. Learn your lesson for the future
Once the whole ordeal is over, your main goal should be to ensure that it never happens again.
Thorough screening for any future tenants is crucial. You could also ask for a larger up-front deposit, or more than one reference.
Holding regular inspections is another smart idea. Rather than doing it once a year, maybe do it every few months. Your tenancy contract could need to be amended to put this in writing.
