Tenants in default

This article from Lawpack's Residential Lettings Kit discusses the difficult problem of a tenant's default on rental payment, and how to be prepared for it.

Always remember that even the best tenants can fall on hard times and can default on their rent. This may result in you having to evict them, which will mean legal expenses and a period without rent (as tenants rarely pay rent if they are being evicted).

The likelihood of tenant default is far greater in lower-quality houses in multiple occupation (HMOs), but can occur in any type of property. Although tenant default is less likely in better quality lettings, when it does occur it will usually be more expensive - you are more likely to need a possession order and of course the rental you are losing is higher.

On the whole, most tenants are satisfactory. However, every landlord who lets for any period of time will have a bad tenant from time to time, and probably at least one tenant who will need evicting.

Remember that 'Murphy's law' applies to residential letting as it does to every other area of life, and you will probably have your bad experience (if you have one) at the worst possible time. Try to guard against this and keep a special fund to pay for expenses should this type of thing happen.

20 August 2008