My tenants’ solicitor is demanding costs!

I don't understand why you would be asked to pay your tenant's legal fees when they have clearly not paid their rent and refused to leave. In any other legal case, if you win, the losing side pays your fees. I am guessing this is the same even if they are claiming legal aid.

Every time I read horror stories like this, I am reminded on how important landlord legal insurance is.

Good luck with everything.

Good point by PP. Do you have insurance cover on your own property and do the insurers offer legal advice in the cover.
Law society on internet states that op lawyers cannot send an invoice as they can’t charge op for VAT and only send a note of costs.
You should request a complete breakdown of costs stating that you are not agreeing to pay but taking legal advice.

Thanks for your responses.

The tenants have been paying rent. They are not in arrears. They just refuse to leave the property.

The costs are the Solicitors hours for working on their case which was the cancelled due to the deposit issue. I have received a breakdown of the work, it seems excessive for completing a court defence form.

I'm wondering whether we would be better off allowing the court to assess costs, rather than paying more for a costs solicitor.

I'm not especially au fait with how it works, but I do know if the tenant is on legal aid, you will have to pay their costs - but only if you lose. At this point their solicitor appears to be making an assumption of winning!

Dear Aislinn
Just a thought - have you asked the tenants if they wish to buy the property from you? If they're that keen to stay, that might be an option. If they can't afford it, you could offer them a purchase lease option to allow them time to build up the deposit which can be added to the rent and put in a separate secure account. Of course, if you need the money now, then this won't work.

Not an expert here but you might well be liable for the tenants' wasted costs (from the defective S21)- you withdrawing the case equals a lose. BUT was the deposit taken before the requirements to protect it were brought in (and was your solicitor aware of this important nicety)?
You need specialist legal advice from someone whose bread and butter is tenancy disputes, probably not the solicitor who did your conveyancing once upon a time

Reply to the comment left by Small Portfolio Landlord at 12/03/2024 - 11:16
Yes, we asked if they would like to buy it over a year ago when we told them we were selling. They can't afford it. We also need the money ASAP. The property has been under offer since March 2023.
They asked us to sell to another Landlord. We accepted a lower offer from a Landlord and he agreed to let them stay at a rent only £100 more than they are paying currently. They did not respond or accept.
Their only communication has been informing me they will not leave and I will have to go through the legal process to remove them.
I honestly feel they are staying out of spite now rather than a desire to remain in the property.

Reply to the comment left by Oldbutnotdead at 12/03/2024 - 11:19
I believe we are liable, but the costs are excessive for the work that would have been required.

Our solicitor is supposedly a Landlord and Tenant specialist. We have paid over £4,000 for two section 21's and two accelerated possession proceedings. We are no further along than we were a year ago.

Our solicitor has recommended we appoint a costs solicitor to negotiate on our behalf. Yet more cost!

If the tenants solicitor sends the costs to a court to assess, it could cost us more or the court may decide the costs are excessive.

We have just submitted accelerated possession proceedings again. If a hearing is required, both us and the tenants will incur further costs, however, this time we will win and go after them for costs.

I'm thinking I could agree to pay the solicitor costs now on the agreement that the tenants vacate the property within 6 weeks and don't drag it through court. If they refuse, then we will go down the court route and we will then go after them for costs. It's just tit for tat.

When I read postings like this it makes me wonder why people are continuing to rent out properties on Assured Tenancies. It seems obvious to me that the risk/reward ratio is all wrong. One bad tenant can wipe out several years profits.Besides the financial loss, the emotional strain suffered must be considerable. All my properties apart from one are gone. IMO far safer to invest in the stock market preferably as much as possible via ISA's soon to be increased to £25,000 per annum. There are risks - I lost about £8,000 when Debenhams went bust but was I bovvered? not really, you win some and you lose some. You can never lose more than 100% of your investment. Most of my investment choices have worked out reasonably well or very good. My £2,430 investment in Diageo in 2005 is now worth £34,900 and my £750 investment in Experian in 2006 is now worth £10,750. (of course as well the dividends have increased over the years) Even my shares like Legal and General and Lloyds Bank whilst showing very little capital growth are producing good tax free dividends. We are currently withdrawing all our tax free dividends and giving them away to family to avoid IHT. It must be surplus income to qualify and you must keep careful records of what you are spending and what you are giving away. You are NOT allowed to use capital to maintain your standard of living.

Think you will find they are entitled to reasonable costs, they have carried out legal work and you moved the goal post so to speak.