Are private landlords (in time) due for a nasty shock? Or tenants?

[geared 319]

Most likely you'll see a glut of homes requiring refurbishment enter the market.

 

Stuff like needing double glazing, new doors and a new boiler.

[PeteMorris 10]

The shock will come as benefit cuts bring-about a reduction in inflated rents.

 

All it will mean is that people on benefits won't be able to get private rental accomodation

[Jeffrey Shaw 90]

All it will mean is that people on benefits won't be able to get private rental accomodation

No- a property owner wishing to let needs a tenant, or else the property generates no income at all.

[PeteMorris 10]

No- a property owner wishing to let needs a tenant, or else the property generates no income at all.

 

Even if it doesn't cover his mortgage?

[lucymamba 10]

The tennants will have to move, but it's unlikely they'll be out of pocket because it's a complete nightmare evicting someone and they can easily stay for a couple of months rent free if their landlord tries to do them over.

 

I ended up £750 out of pocket... My landlord defaulted on her mortgage, then went bankrupt. First we knew was a letter giving us our notice (2 months I think?) from whoever was managing the bankruptcy.

 

In our last month at the property I rang the tenancy deposit scheme to reclaim the deposit only to find she had given me a false reference, never paid it in. Stupidly I have left this until after we had let the final month's rent direct debit go out.

 

No hope of recovering the £750 deposit really. Was advised we could go through small claims but her list of debts was HUGE and we were one of the smallest so unlikely ever to see it. William H Brown didn't even give me time on the phone to advise, they washed their hands of it despite them telling me the deposit was in scheme and giving me the fake reference number.

 

Lessons learned the hard way. But tenants can suffer when landlords can't keep up with finances! Luckily my current landlord is a gem.

[PeteMorris 10]

This is also good news.

 

Landlords will be forced to refurbish hundreds of thousands of the UK's most draughty and energy-inefficient homes or find themselves blocked from renting them out, under proposals unveiled on Tuesday.

 

That article was dates June 2011....Is it happening yet?

[geared 319]

Lessons learned the hard way. But tenants can suffer when landlords can't keep up with finances! Luckily my current landlord is a gem.

 

Pity that.

trick there would be to just stop paying rent 2 months prior, chances are slim she'd go after you being as she's already knee deep in the proverbial.

[L00b 441]

Even if it doesn't cover his mortgage?

Most rental properties I was familiar with in Dublin at the height of the boom (2007) had rents that did not even cover the mortgage payment. It was all about "get that (rental) property bought ASAP" and worry about the financials later or you'll "miss the boat and never be able to buy, ever again".

 

In the estate we were living (Rathfarnham, South West, leafy/midle class), we had the lowest rent (€1200), by nearly half for the exact same house as the other rented ones: our landlord had bought it new when it was built in the early 80s, and was not greedy in the least, preferring a stable long-term never-defaulting tenant who looked after the place. He never put the rent up in nearly 4 years.

 

All the other rental houses had been bought much more recently by play-at-it landlords, minimum rent for these starting at @ €2200. With 95+% mortgage for a €700+k property. You do the maths

 

We still have friends on that estate today and keep in touch: old Liam still owns the one we rented, mortgage must be paid up by now as well. At least 3 of the other rented properties have since been repo'd.

 

I wouldn't be surprised in the least to see a great many play-at-it landlords trying to build up portfolios as fast as possible at this moment in time, and not full weighing up prolonged vacancies, shrinking incomes and benefits, increasing interest rates and whatever other surprises the Gvt might have in store for the sector.

Edited March 7, 2013 by L00b

[PeteMorris 10]

Pity that.

trick there would be to just stop paying rent 2 months prior, chances are slim she'd go after you being as she's already knee deep in the proverbial.

 

I've had a landlord refuse to repay a bond. It was held in the deposit scheme, but he wanted it all. Problem is, you both have to agree on who gets what...so it ended up, being left in there as far as I know to this day. There was no way I was going to agree to him having it. It wasn't justified.

[lucymamba 10]

Pity that.

trick there would be to just stop paying rent 2 months prior, chances are slim she'd go after you being as she's already knee deep in the proverbial.

 

Yep. Had I checked a month earlier that the deposit wasn't a sham I'd have known to withhold the final month's rent, but being far too trusting it never occurred 'til it was too late.

[PeteMorris 10]

Yep. Had I checked a month earlier that the deposit wasn't a sham I'd have known to withhold the final month's rent, but being far too trusting it never occurred 'til it was too late.

 

In retrospect I should have withheld the rent. I did think about it, but I'm too flippin' trusting.

[Jeffrey Shaw 90]

I've had a landlord refuse to repay a bond. It was held in the deposit scheme, but he wanted it all. Problem is, you both have to agree on who gets what...so it ended up, being left in there as far as I know to this day. There was no way I was going to agree to him having it. It wasn't justified.

 

Yep. Had I checked a month earlier that the deposit wasn't a sham I'd have known to withhold the final month's rent, but being far too trusting it never occurred 'til it was too late.

That's why the Housing Act 2004 imposed Deposit Protection on all AST landlords.

As usual, the good ones are inconvenienced because of trying to stop the bad ones.