Figures from homeless charity Crisis released last year showed a 70% rise in evictions over three years. That is a startling figure, although it would be wrong to think that landlords are the bad guys. Rents have increased, but so have mortgage and other buy-to-let costs. There are also wider forces at play: an increase in unemployment, static wages, higher living costs and benefit cuts have all taken their toll.
Regardless of the reasons, many more landlords have found themselves having to evict their tenants in recent years. As with most things in life, there is a right and a wrong way to evict. Getting it wrong could see you on the wrong side of the law, and help contribute to the already struggling public image of landlords.
When to evict
If a tenant is not paying rent, you must act quickly. The eviction process can be long, particularly if tenants contest it. They have more rights than you may realise, but dealing swiftly with problems paying rent could help you avoid eviction altogether, saving you a lot of stress, and a lot of cash. Talk to your tenants before you issue an eviction notice: if they have only missed one month’s rent because of a temporary financial blip, and still have a stable income, they may be able to pay that back over a period while keeping up with future rent payments. If you can come to this kind of agreement, you’ll save having to go through the expense of eviction.
If tenants can’t or won’t pay, you need to evict. Assuming they are on an Assured Shorthold Tenancy, you can evict within two months with a Section 21 notice. However, you must make sure that the notice is served at the end of a rent period, in writing and that it clearly states that you are giving notice “under Section 21 of the Housing Act 1988”. Failure to issue the proper notice can slow down the eviction and cost you money. If you haven’t protected your tenant’s deposit in a government-authorised scheme, then your eviction notice may be invalid.
Once served with a Section 21 notice, some tenants will take steps to leave before it goes to court. Others will wait for a court hearing, but if you have followed the procedure correctly, the courts will have to issue a possession notice, so you can get your property back and get paying tenants in.
The cost of all this can mount. Court fees themselves are only around £150, but if you need to employ bailiffs, they will cost extra, and you will have lost at least two months’ rent while waiting to evict. It is a good idea to have landlords insurance that will help you cover these costs.