Landlord 1 – Shelter Nil

Landlord 1 – Shelter Nil

10:50 AM, 24th May 2022, About 3 years ago 37

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I had a very large and aggressive tenant who was in rent arrears. For the 11 years of his occupation, he was regularly behind with the top-up to his housing benefit and I would periodically have to ask for back payments.

When he told me he couldn’t afford to pay for 6 months to pay for his holiday, I gave up and began Section 8 Possession in 2020 for circa £2k o/s rent.

The tenant went to Shelter with a list of complaints of disrepair, some he had caused the damage himself, some he hadn’t reported to me and others that I’d made efforts to rectify despite being excluded from entering the property for a year.

There was a counterclaim for disrepair and notional damages up to the amount of £ 15k claimed against me! Plus the risk of considerable legal costs should I lose the case.

I sought the assistance of Chris from Possession Friend. He worked with me from mid-2020 through to the 2-day court hearing culminating this month. My statement of evidence was massively enhanced and Chris spent a great deal of time throughout the very emotional and time-consuming process, advising and supporting me, including attending court.

The case was presented for the tenant by a barrister on legal aid, sourced by Shelter (at an unknown but significant cost to the taxpayer).
I represented myself with advice and support from Chris.

After considering the substantial evidence I submitted, the judge said he didn’t believe the tenant’s version and awarded me outstanding rent and possession.

Landlord 1 – Shelter Nil

As a result of my experience, I will be selling the property so there’ll be one less rental property in a market of high demand. Going forward, I will not rent to a tenant in receipt of benefit without references and a cast-iron guarantor.


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Kate Mellor

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16:13 PM, 25th May 2022, About 3 years ago

Reply to the comment left by Beaver at 25/05/2022 - 11:25
A tenancy can be any length, but there exists a statutory minimum of 6 months that a tenant has the right to. You cannot evict a tenant before six months unless there is a significant breach of the terms of their tenancy agreement. That is why most standard tenancy agreements give a 6 month fixed term; and that the service of a section 21 notice cannot take place before the end of month 4 of a tenancy, thereby following the two month notice period a tenant will have had his 6 months.

I don't really see the advantage of offering a four month fixed term though. You still have to give two months notice if you want the tenant out and it can't be served any earlier than the beginning of the fifth month. But assuming you didn't want the tenant out you might end up with them deciding to leave after their four months anyway.

Kate Mellor

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16:28 PM, 25th May 2022, About 3 years ago

Reply to the comment left by Beaver at 25/05/2022 - 11:25
You asked whether the risk is greater with an AST or periodic. Firstly there are two types of 'periodic' tenancy; a contractual or a statutory periodic tenancy.

The wording of your AST will determine which type your tenancy will roll into at the end of the fixed term assuming a new AST isn't signed. If your AST is silent on what happens at the end of the fixed term, your tenancy will become a statutory periodic tenancy. This constitutes a new tenancy rather than a continuation of the previous tenancy. This new tenancy is under the same terms as the preceding AST and the period is determined by the rent payment intervals. Most are monthly.

If your AST states that following the fixed term the tenancy will become a contractual periodic tenancy, then it is counted as a continuation of the original tenancy by contract and not a new tenancy.

As to the differences, if you have a guarantor you need to be careful to ensure that you make provision for a contractual periodic tenancy following your fixed term, otherwise you could find that your guarantor is only liable for the initial fixed term, depending on the quality of the guarantor agreement you use.
I believe there are also advantages regarding council tax liability if you have a contractual rather than a statutory periodic tenancy.

Beaver

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16:48 PM, 25th May 2022, About 3 years ago

Reply to the comment left by Kate Mellor at 25/05/2022 - 16:28
Thanks Kate, that's helpful :-).

Chris @ Possession Friend

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16:56 PM, 25th May 2022, About 3 years ago

Reply to the comment left by Kate Mellor at 25/05/2022 - 16:28Yes Kate, under a Contractual Tenancy, the tenant is liable for Council tax for the whole period of the tenancy including a notice period.
Also as you point out, it removes the separate tenancy of a 'new' statutory periodic tenancy following on after the fixed term has ended.
A lot of professional tenancy agreements have for some years, been stipulating that the tenancy will continue as a contractual tenancy after the fixed term ends.

K Anon

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17:28 PM, 25th May 2022, About 3 years ago

Reply to the comment left by Kate Mellor at 25/05/2022 - 16:13
maybe the benefit of 4 months is to avoid getting stuck, i.e outside of the AST term you can use S21, inside (so lets say you had 1 year AST and was repossession after 7 months) you have to use S8.
S8 = high counter claim risk with state funded benefit tenant getting legal aid vs you with your savings.
that is a real issue which is why (to me not everyone I am sure) abolishing S21 is such a disaster to the genuine tenants.

Blodwyn

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8:16 AM, 28th May 2022, About 3 years ago

I am a retired solicitor. It’s horses for courses. Your local conveyancer may not be a L&T lawyer. Always use a specialist.

Badger

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11:32 AM, 7th June 2022, About 3 years ago

Reply to the comment left by Chris @ Possession Friend at 25/05/2022 - 16:56
"A lot of professional tenancy agreements have ... been stipulating that the tenancy will continue as a contractual tenancy"

And a lot haven't as well.

It is well worth explicitly checking for this.

(Worst case you will find that the organisation concerned is ignorant of the difference. In which case simply move on elsewhere, of course...)

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