Is it getting harder to evict rogue tenants?
A property boss had warned that small administrative errors could see landlords stuck with nightmare tenants.
The majority of landlords and letting agents use Section 21 of the Housing Act 1998 to end tenancies in the event of damage to a property or other grounds.
Powerless
However, Ajay Jagota, director of sales and lettings firm KIS, feels that changes in the law-amended in the Deregulation Act 2015, could see property owners powerless to evict rogue tenants.
It is feared that possession claims are unlikely to fall should agents not put tenants’ deposits in authorised deposit schemes, within 30 days.
In addition, Jagota notes the importance of providing tenants with the prescribed information relating to their deposit within this allotted time-frame.
Mr Jagota noted: ‘I know people tend to start playing the world’s smallest violin when they hear about problems being faced by landlords, but these rules could see someone’s much-loved family home or pension jeopardised by tiny administrative errors.’[1]
‘Changes in the legal and taxation system mean that if you have any sort of investment in property, protecting that assets is a priority-not something you can do on the hoof,’ he continued.[1]
Reputable
Jagota went on to say: ‘Usually the answer is a reputable letting agent, but they aren’t necessarily legal experts and the rising number of failed Section 21 applications implies that what landlords really need to invest in is good insurance. That way when the worst happens they can get the experts in rapidly and affordably.’[1]
‘It’s clear at the moment that both agents and landlords are getting it wrong. If you’re a landlord and you don’t have the sophisticated insurance you need, you’re leaving yourself wide open. There’s also the matter of the impact on the wider community. It only takes one family to ruin a street or village, and most landlords want to be able to take action, not just to protect their investment but on the community’s behalf. This situation could leave them powerless to help because they forgot to give those tenants a leaflet they probably wouldn’t have read anyway.’[1]
Concluding, Mr Jagota observed: ‘The saddest thing is that deposits are a relic of a bygone age. There is absolutely no need for landlords or letting agents to be using them at all when there are significantly more effective insurance-based solutions available.’[1]
[1] http://www.propertyreporter.co.uk/landlords/why-is-it-getting-harder-to-get-rid-of-nightmare-tenants.html