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When deciding to rent out your property it can be easy to imagine that your future tenants will be noble custodians, diligently looking after the space, paying rent on time and being respectful to neighbours and the environment.
Thankfully this is more or less the case with most tenants, but sadly there are times when things don’t quite go so smoothly. The team at law firm Slater Heelis discuss what to do in the event that disputes arise between residential landlords and tenants.
Firstly, Avoid Disputes
Certainly, the best way to avoid a dispute is to anticipate the potential causes of one. Prevention is better than cure, and notably, cheaper. Thankfully, many have come before you and we can learn from their experience.
So, what are some of the common causes of disputes?
- Late or missed rent payments
- Noise or nuisance complaints and antisocial behaviour
- Disagreements about who is responsible for repairs and maintenance
- Damaged property
For most landlords, avoiding these disputes can be achieved by having a robust tenancy agreement in place that details the responsibilities of both the landlord and tenant, financial obligations such as how and when rent will be paid and what remedies you are entitled to seek in the event of a breach of the agreement amongst other things.
As a landlord, being upfront and transparent about the extent of your responsibilities can go a long way towards preventing disagreements further down the line. Be sure to detail how you will meet your obligations to ensure the property is safe and inhabitable.
If Tenants Breach the Tenancy Agreement
With a well-structured and clearly written tenancy agreement, it becomes easier to identify when a breach occurs and to then take appropriate action.
Sometimes the situation is cut and dry; a rent payment was missed, or something broken, with fixed costs for repairs and receipts to back it up. In other circumstances, it isn’t so simple. Often a tenant can neglect their responsibilities, allowing the property to fall into a state of disrepair, failing to maintain a minimum standard of cleanliness or causing disruption to neighbours. These situations can lead to complex and costly disputes, so it is important to prevent this where possible.
Communication is Key
One of the most effective ways to prevent these issues from becoming a problem is to keep in regular contact with tenants. Property inspections at regular intervals can alert you to any potential issues as they develop. So too, can maintaining an open line of communication with tenants, such as a WhatsApp group, for any concerns about the property or to communicate any developments, such as providing notice of an inspection or the arrival day and time of a contractor.
Please note, however, that formal notices and warnings for issues like noise complaints, unacceptable behaviour or unhygienic conditions should be communicated in writing. Written evidence of these incidents and notices should be kept on record in case the tenant disputes this at a later date or the situation needs to be escalated further.
Deposit Deductions
For an assured shorthold tenancy, landlords must keep their tenant’s deposit in a government-approved tenancy deposit scheme (TDS). In certain circumstances, a landlord may make deductions from the deposit, however only in the event that a breach of the tenancy agreement has resulted in financial losses for the landlord, such as the cost of repairs or recovering unpaid rent, and any deductions must be of a reasonable amount.
It is vital you include within the tenancy agreement a deposit use clause that outlines the circumstances in which money can be deducted from the deposit. Failure to do so could mean that any related dispute from the tenant is likely to be upheld by the TDS adjudicator in the absence of a deposit use clause.
Managed Payments
In the event that a tenant owes rent and is in receipt of Universal Credit or Housing Benefit, landlords can apply for managed payments, where the rent is paid directly, either through the Department for Work and Pensions for tenants receiving Universal Credit or through your local council for tenants receiving Housing Benefits. This can often be favourable to proceeding with the eviction process.
Eviction
Whilst eviction of tenants is an option for some landlords, often it is worth avoiding such drastic action where necessary. Instead, professional dispute resolution methods could be utilised to come to a mutual agreement on amicable terms.
Eviction is the final resort if all other dispute resolution attempts are unsuccessful. There are two types of eviction notice; Section 8 and Section 21. The process can become complex, especially if tenants wish to dispute the eviction notice, or if they ignore it.
At this stage, we would highly recommend seeking experienced professional legal assistance so that you are able to reclaim your property when you wish.
A Section 21 notice can be served to any tenant without reason, with a few exceptions. This notice informs the tenants that they must vacate the property after a certain date, which is either the end of their agreed tenancy or a period of time no sooner than 2 months.
In the event of a breach of the tenancy agreement, you can submit a Section 8 notice by filling in a ‘Notice of intention to begin proceedings for possession of a property in England let on an assured tenancy or an assured agricultural occupancy’ form, which states the terms of the agreement the tenant has broken. A Section 8 notice must also give the tenant 2 months’ notice before the eviction date, although this can be reduced to as short as 2 weeks in certain circumstances, such as serious rent arrears.
If in Doubt, Seek Help!
Hopefully, this has provided you with the information you may need to effectively handle disputes with tenants, and ideally prevent them from occurring in the first place. Sadly, the process can be complicated at any stage by many factors. Investing in experienced legal professionals can save you a headache further down the line. An experienced solicitor can assist you with drawing up a solid tenancy agreement, advise on the correct way to communicate with tenants and if necessary, provide support during the eviction process.
