Help! A landlord with a problem property!

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    Help! A landlord with a problem property!

    Hi all, I have a large 4 bed flat which is located above a social club. As a result of the noise (and smoke!....) from the club below, it only attracts a "certain" type of renter! Invariably, these renters are quite transient, normally staying only a couple of months, due to the late night karaoke and fumes from downstairs!
    My question is, if I rent to somebody without the cost of producing a legal tenancy agreement, or take a deposit, does the tenant have ANY legal rights should I ask them to leave??

    #2
    They have the same legal rights as any other tenant that you let to.

    I assume that by - "if I rent to somebody without the cost of producing a legal tenancy agreement" - you mean not having a written TA?

    Just because a tenancy agreement is verbal and not writen down does not make it any less legal.
    You still have to do right to rent checks, issue the correct documents etc.

    The deposit is neither here or there, apart from the fact that if you do take one then you have to protect it and issue the prescribed information in accordance with the law.

    I'm further assuming that you are not the owner the social club, you are not the licencee, or living there yourself?
    If you are any of those then the answer may be different, eg. you might be able to licence it with the council as a guest house / B&B, so people could start or leave as you or they want.
    But of course that comes with a whole other raft of regulations and legislation.
    http://www.bandbowner.com/public/359.cfm

    Comment


      #3
      Why did you purchase this undesirable property for a Rental?
      Can you not sell it to the Social Club owner?

      Comment


        #4
        Seriously? Of course they do!

        Comment


          #5
          Thank you for all your answers, and sorry for the delay in responding!

          Comment


            #6
            I have now been approached by a company who wishes to take on the tenancy. They say they sub-let to workers in the local area (Amazon, Sainsbury's ETC..).
            My concern here is that the company name will be on the TA, and therefore responsible for paying the rent. What happens however, if one of the sub- tenants decides not to pay their rent, or falls into arrears? If I have to terminate the tenancy, how do I evict the actual people living in the property, when their name(s) aren't on the TA??

            Any help would be much appreciated.

            Comment


              #7
              Also, forgot to say that my letting agents found these new prospective tenants.

              Comment


                #8
                As tenant will be a company it cannot be (may not be, legally impossible to be..) an AST. So no s8, no s21. Amazon workers are apparently notorious underpaid ...Unless you are in Scotland I would avoid such a deal, unless with a personal guarantee from a credit-checked, property-owning director & using a tenancy agreement you supply (no company, not agent..).

                If the company's tenant/worker doesn;t pay rent that's not your problem - unless the company doesn't pay you & you have no other way of getting the money (see suggestion of guarantor)
                I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                Comment


                  #9
                  Why not offer to sell it to them?

                  Comment


                    #10
                    I did explain to the company directors that I would require them (the company) to be credit checked, so that I could obtain a rent protection insurance to guarantee the rent should things go wrong.
                    The (the directors) said they were happy with that, but now am wondering whether I should credit check the company or the directors personally??

                    Comment


                      #11
                      Selling to them is not an option, as I own the whole building, which includes the social club downstairs.

                      Comment


                        #12
                        'umbly suggest forget credit checking company, credit check a property owning director & get a guarantee from him
                        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                        Comment


                          #13
                          Originally posted by Grafton123 View Post
                          I have now been approached by a company who wishes to take on the tenancy. They say they sub-let to workers in the local area (Amazon, Sainsbury's ETC..).
                          My concern here is that the company name will be on the TA, and therefore responsible for paying the rent. What happens however, if one of the sub- tenants decides not to pay their rent, or falls into arrears? If I have to terminate the tenancy, how do I evict the actual people living in the property, when their name(s) aren't on the TA??

                          Any help would be much appreciated.
                          These always open a nice debate over council tax liability in these sorts of cases - are the people living in the property going to be there as their 'sole or main residence' ('sole or main residence' is often wrongly ignored in these cases - including in many of the on-line 'guides' )? Is the contract to the company going to be for more than 6 months in term and what happens at the end of the term ?
                          Previously served 10 years as a council tax advisor with a local authority but now self-employed with my own council tax consultancy.

                          If your local authority disagrees with any aspects of your council tax claim, as they are free to do so, a Valuation Tribunal appeal may be required.

                          Comment


                            #14
                            Originally posted by Grafton123 View Post
                            I did explain to the company directors that I would require them (the company) to be credit checked, so that I could obtain a rent protection insurance to guarantee the rent should things go wrong.
                            You'd best try and source that before you do anything else.
                            I'd have thought the risk would be very expensive to insure against.

                            Closing down a company is an extremely easy way to avoid paying it's debts.
                            Credit checking a company is extremely risky - the available data is always out of date.

                            Don't ever rent to a company - would be my tip.
                            If the "company" want to sublet and you're OK with it, rent to the directors personally (and you'll still want to check out the insurance position).

                            It's also going to be an HMO - which has all kinds of other issues.
                            And an HMO over a commercial premises...
                            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                            Comment


                              #15
                              Originally posted by Grafton123 View Post
                              .... so that I could obtain a rent protection insurance to guarantee the rent should things go wrong........
                              Doubt very much you will get rent protection insurance if renting to a company: Let us know if you find such a company.

                              I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

                              Comment

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