FT reports that Local Authority tenant repossessions soaring
According to this recent article in the FT which in turn sources it’s data elsewhere there has been a big increase in the number of rent arrears possession claims and orders against Local Authority tenants this year. As you will note on reading the article there were some 17,000 evictions overall in the first quarter of 2010.
These situations are frankly a nightmare for Landlords. Many unwary landlords believe that if they have a local authority tenant, somehow the Council are responsible for paying the rent. This is not true. The contract is between landlord and tenant not the Landlord and the Local Authority.
In many of these situations the tenants stop paying and it will then take the landlord a minimum of 8 weeks to get an order. It can then take a further 4 weeks or more to obtain vacant possession by sending in bailiffs if the tenants still do not leave. During this period it will be highly unlikely the tenants will pay any rent, and it is far from uncommon for a landlord to lose 6 months rent or morein total in these situations.
On top of all of this, the landlord may still be paying a mortgage and using solicitors for the paperwork and court proceedings to gain possession will add extra potentially significant costs which it is unlikely will be recovered from the tenant either. This a triple whammy situation if ever there was one.
At Bluestone, we offer a range of services which assist landlords in mitigating the risks associated with the above scenario, whether tenant or guarantor vetting, general advice on the pitfalls to be aware of, possession claims services which are highly competitive when compared to lawyers fees and advice on enforcement of any money judgment obtained.
Get in touch to find out how we can help.