Dealing with nightmare tenants – A guide on how to handle common tenancy issues as a London landlord

Being a landlord in London is one of the best ways to generate passive income, as the stats speak for themselves. At the end of last year, average rents in the capital hovered around £2,627 per month, meaning a typical landlord made over £31,500 in a calendar year. However, being a landlord is not always as easy as it may seem, especially if you choose to do everything yourself. While most tenants are law-abiding citizens and honour the legal terms mentioned in the tenancy agreement, there is always the possibility of encountering anomalies.

If you’ve been a landlord long enough or have multiple properties rented out, the chances of tackling such tenant troubles may come knocking at some stage if they haven’t already. From late payments and property damage to more severe issues of criminal activity and illegal subletting, we’ll help you deal with such nightmare tenants through this blog.

Payment lapses

The most common tenancy problems are related to non-paying tenants who delay paying the rent, which may be due to genuine financial difficulties or sheer negligence. In any case, the main objective of landlords is to earn consistent income from their assets, which defaulters can hamper if not dealt with promptly and tactfully. Thankfully, the UK has transparent and fair laws for collecting rental arrears and non-payments.

Property damage

While your property is someone’s temporary home, it is your permanent asset. Careless tenants who make unauthorised physical alterations or fail to maintain the property as agreed can cause a lot of stress for landlords, especially if there are council fines to be paid or expensive renovations needed.

Unlawful activity

Although a rare occurrence, thanks to multiple reference checks before renting, it is still possible that your tenant could be involved in criminal activity. Whether it is the sale and production of narcotic substances or any other unlawful activity, if you have reason to believe there is something illegal happening at your property, immediate action is recommended.

Subletting to strangers

As a landlord, you are entitled to, and it is expected of you to know who is living on your property. If your agreement prohibits subletting to a third party, your tenant cannot welcome strangers to stay or conduct any other unauthorised commercial activity at the premises. This can expose you and your property to several risks.

Nuisance to neighbours

Complaints from other residents in the neighbourhood about a noisy or uncivil tenant at your property may need you to personally look into the matter, which can be challenging if you are an overseas or remote landlord.

While the list goes on about the grief a nightmare tenant can cause, these were some of the most common tenant-related problems landlords have to deal with. We will also share some practical and effective solutions to help you avoid such situations and address them correctly if they do occur.

Thorough tenant referencing

This is the most important step before you allow anyone to use your residential property in London. Hiring the services of a dedicated tenant referencing company is essential, as they can verify the authenticity of documents provided by potential tenants. If discrepancies are spotted and flagged early on, it averts the possibility of future problems arising from unlawful activity or payment issues caused by fake income and employment proofs. As a professional and experienced lettings agent, we work with top referencing agencies to get our landlords the best tenants.

Getting it right with the lease

If you are like the majority of private landlords in London with rental income less than £100,000 a year, it is most likely your tenancy agreement is subject to the rules of the Assured Shorthold Tenancy (AST). As per the rules of this agreement, landlords are allowed to collect rent in advance on a monthly or quarterly basis, avoiding a situation of late payments and defaults. At Benham & Reeves, we manage timely rent and deposit collection and disbursements, removing any payment hassle for landlords.

Speaking to your tenant

There are no problems that cannot be resolved through honest and open dialogue. Whether it is a late payment, a complaint from the neighbour or any other issue, try communicating with your tenant and understanding the situation before you choose the appropriate course of action. It could be a late pay check or a minor disagreement that can be sorted out easily. However, if your tenant is unresponsive and unwilling to communicate, you may have to consider the legal route as per the lease terms. As your lettings agent, we visit your property and communicate with the tenant to provide regular updates.

Eviction – The last option

After having tried all of the above suggestions without any positive outcome, the only option a landlord has is to proceed with the legal eviction process. Although you may feel like asking the tenant to vacate immediately, there are laws protecting tenants from illegal or forced eviction if landlords do not follow the set process. Depending on what grounds, whether it’s a ‘no-fault’ notice or a breach of agreement terms, you can serve your tenants with either Section 21 or Section 8 notices. If your tenant fails to acknowledge or respond to the notices you send, you can appeal to the courts for further legal intervention.

As your dedicated lettings partner, we provide a range of services to our landlord clients and assure them of a smooth lettings process where things don’t get so out of hand that you need to knock on the court’s door. With 21 branches across London and 15 overseas offices, we are well-connected with tenants and their overseas landlords to mediate and run things seamlessly. From pre-tenancy preparations to post-tenancy checkouts and all the legal, logistical and admin work in between, we support landlords through the entire process. If you are a London landlord looking to avoid such nightmare tenants, get in touch with us today.