Landlords Revenge

@ industry observer

Its hard to change solicitors when they have been appointed by the insurance company, and they are in truth representing the insurance company not the landlord. In truth, if I need to go through another hostile eviction, I will do it privately through a company such as Landlord Action already mentioned in this thread.

My tenants moved in 07/07/12 paid one months rent in advance and a deposit, then never paid a penny again, I put my claim through to my insurance provider on 07/09/12 they were finally evicted by a bailiff via a section 8 on 20/03/13. In total process from the first non-payment of rent on 07/08/12 to eviction took 8 months and cost me 8 months rent.

The solicitors appointed were at best disinterested, at worst incompetent. Hindsight is a wonderful thing, and had I known the full drawn out horror of the process I would have gone a different route. But, its a drip drip process, where days drag into weeks, weeks into months. I just look at it as an expensive and stressful learning experience.

Strangely, this is why I do not blame the tenants as much as some. They made it clear they were not paying the rent by mid 07/12, legally I can have them removed with 14 days notice from 07/09/12 - the fact they were allowed to stay in the property until 20/03/13 is totally the fault of the legal system and its participants.

Andrew Taylor;
Actually the govt does think that social housing LL should receive direct payments as they have accepted that Social housing LL may apply for direct payment as soon as 2 months of rent arrears have occurred and then recovery of the arrears will occur.
So social housing tenants will never be able to abuse the system apart from obtaining 2 months of rent money to spend; in the knowledge that it will only be recovered slowly from their UC.
Basically an interest free loan of 2 months rent from the DWP!
I can see many HB tenanting renting from HA etc using 2 months rent for other more 'important' things than paying the rent to the social housing provider!
So NOT an ideal situation for social housing providers; but as for PRS LL you are bang on; the DWP doesn't see anything wrong tenants not paying their HB to the LL.
Your experiences with these civil servants must confirm what every PRS LL has ever thought.
The govt has shown its true colours that it has nothing but contempt for the PRS.
So that informs the situation.What will PRS LL do to stick it to the govt.
Exiting the HB market would be the best way of shoving it to the govt.
Source only tenants on whom you can achieve RGI on.
I must admit I am very surprised that these civil servants showed their hand as to how they perceive the PRS.
I'm afraid the PRS will not be assisted by these contemptuous civil servants.
It does not augur well for the roll out of UC.
PRS LL can now see the writing on the wall and will further desert the HB market.
It won't be a good time to be a HB tenant.
There will be lots of property available at HB rates; just won't be available to HB claimants!
I just can't believe why this particular govt treats LL like they are a Labour govt!!?
I'd love to know what informs these civil servant attitudes you have experienced!?
Mind you Senior civil servant are divorced from reality.
They probably think of PRS LL as a load of Rigsby's and therefore to be given short shrift.
When these tenant find themselves homeless; I wonder whether their political masters will view these Civil servants in a very dim light.
The DWP is responsible for the 'successful' roll out of UC and yet they seem to disregard the fortunes of 1.5 million LL and 4.5 million tenants; some of whom are on HB.
I just don't get it.
Surely the PRS is part of the housing crisis solution.
The DWP is not exactly doing itself any favours with its hardly ingratiating attidudes!!.

IO; I accept what you say; but you know what I mean even though I don't say exactly as the RGI is obtained.
It is just shorthand for the facility that can be obtained.
I suppose I should be exact; just trying to cut down on the RSI!¬!

Andrew just use bestinsurance or Mark's offering via lettingsomething; Mark will provide a suitable link I'm sure!.I can't remember it.
My best insurance RGI policy paid out £10333; I submitted the claim on the 85 th day of the 90 day claim period.
Only did this as the tenant promised she would pay me; so I took it to the wire!!
The RGI solicitors did all the donkey work; I went to court once and tenant was evicted.
10 months in total and I didn't lost a a penny.
Mind you I had to redec after it had been done 12 months previously.

Paul,

The meeting with reps from DWP was in 2010 (around then anyway) so things may have moved on. But what was clear was their entrenched Whitehall view on this issue. The department had (and I expect still has)
no sympathy for landlords not passed on LHA by their tenants.

So yes, their advise would seem to be that tenants in receipt of LHA can keep as much of that benefit as the law will allow them. It is not theft in any way as it is their money which they are entitled to. It is up to us as landlords to enforce private contracts me may enter into with a tenant for the provision housing.

This is why I do not do LHA!

Paul

If the Govt is so keen why pay any rent direct to tenants?

I don't want to make it rain on any LLs parade but how much a week/month do you all think is going to be clawed back from ongoing HB payments to pay off the first two months arrears? You all surely don't think it is the full rent, do you?

My guess is it will be like the Court cases I see while awaiting my turn as they deal with the HB cases - about £5 a week unless you have a really good brief and a very sympathetic Judge

@ Andrew

If it was an insurance claim, and if it was with a half decent policy, how come you lost the 8 months rent? If you are prepared to pay a proper premium underwritten by a quality source you can get up to £4000 a month for a year plus 2 months at 50% refurbishment costs.

That is for a premium of about 3% of the rent

RGI is now a standard policy on all our new tenancies.

As I think you have mentioned else where, I send all the relevant documentation to the insurance company and get in writing this is sufficient to make a claim.

its not the just the lost rent, but also the removing of the drip by drip increasing stress and feeling of professional failure when you are continually asked "are they STILL not paying you any rent".

IO

I have a landlords portfolio insurance product provided by Amlin. Its not particularly cheap, and I am on it because it was apparently the best product not the cheapest.

I am covered for legal costs an rent recovery. Have I been happy with this service - No. Would I recommend to another landlord - No. Will I renew with them - No.

You never know how good an insurance product is until you make a claim, and in this case I have been very disappointed. But, we live and learn!

Andrew;
Mate; I have been asked that question repeatedly by my parents!
The look of disappointment on their faces when I confirm they still haven't paid any rent!!
As though I'm the one to blame!
Well I suppose I was for the 1st 3 evictions.
I got RGI for the 4th wrongun tenant
We learn eventually!!
I would query though your RGI methodology.
All I have to do is get the tenant to phone the broker; pay £10 and then the broker calls me back about 45 mins; ans yes or no.
It is a certified check and I am NOT required to carry out ANY other referencing for the policy qualification!
Clearly it makes sense to do other referencing; like LRS, but I don't have to!
It is the lazy LL way to guarantee RGI on a tenant or guarantor.
Now I know that is NOT the professional way; but sometimes you're rushing around and this way does it.
You have a month to take the policy out from the RGI check date.
I have heard and it nearly happened to me; when the RGI company tried it on; that these RGI companies will try and quote other things you should have or should have done and as you haven't the policy is invalid!!
I can see why LL would be cynical about such RGI policies.
Are you absolutely sure what you would have to provide in the event you needed to make a claim.
That is when most LL fail as these stupid RGI companies start producing all sorts of things they suggest you knew about and should have!!
Mine tried it but I soon stopped their silly little games courtesy of best insurance.

It comes to mind that when UC comes in this may well benefit the banking sector alot more than anyone has noticed....
HowSo, you ask !
Well, what happens to any payment made to a bank when the customer is in debt/over the overdraft limit?.....
After adding extortionate fees onto your bank account, to make you WELL over your limit, it then grabs the cash, and pays itself the fees it added on and refuses to let you use any of it for food, bills or rent.
Who suffers? firstly the LL, but of course the poor HB tenant who then gets a bad name for not paying the rent, and ends up in rent arrears...
Who Gains? The bank, clawing back some money from it's customers!
They must be rubbing their hands together in glee, waiting for this to come in nationwide!!!
....Moral of the story: People in Government making up rules so that they, and their banking friends can take even more money from us, making them richer and us poorer.

PS. I'm not really defending HB tenants !