New Industrial / Warehouse Unit 1875 sq ft
Property owners : dealing with bad tenants by Ian Sharpe , Branch Director , for Bluefin in Swindon
One of the unknown factors in letting property is how well your tenants are going to look after it once you agree to let it . Perhaps it ’ s a difficult thing to predict . But , that ’ s why most property owners will ask for references , to try and ensure some kind of guarantee on good behaviour . But what if , despite a so called ‘ good ’ reference , you end up with tenants that cause damage or worse , even break the law in your property ?
Can you detect bad tenants in the first place ?
• Make sure you carry out background checks and verify references – someone could steal a persons ’ identity in order to rent a property . A more common claim of late has been when fraudulent tenants have turned properties into a cannabis factory . They then disappear , leaving landlords with the damage . If verifying references is a condition of your policy then your claim could be refused if you have failed to do so .
• With a new tenant it is good practice to do your first inspection after 3 months then every 6 months after . If someone did want to turn the property into a cannabis farm , having the first inspection after 3 months would probably serve as a deterrent . The time frame is crucial , as it wouldn ’ t be long enough to do all the work , grow the plants and get everything out .
• Research your managing agent . Make sure that their inspections and referencing complies with the conditions of your policy . A fraudulent managing agent can cause untold trouble .
• Beware of reluctant tenants when carrying out inspections – if you ’ ve given them notice every room should be available . If they don ’ t let you go upstairs because someone is sleeping , or someone is in the bath , arrange to go back and inspect again . They may have something to hide .
Top tips if you suffer damage It can be very common for let properties to suffer damage , but there are limits to what will be covered by an insurance policy . It pays to know the difference between wear and tear and malicious damage . If you have had a long term tenant then things such as chipped paintwork , worn carpets and marks on the wall are not considered malicious . This kind of damage is just wear and tear , which cannot be claimed for . As a landlord you should usually expect to redecorate your property after 5 years .
Things you should be aware of :
• If you are trying to prove damage is malicious , note any disputes that you have with tenants as this could help when it comes to a claim .
• Should you evict a tenant by issuing a Section 21 ( a legal eviction notice ), be aware that tenants may develop a lack of care for the property . This might mean mess from a pet , not cleaning up , leaving rubbish behind etc . – although not pleasant it ’ s not malicious and will not be covered under an insurance policy .
• Make sure you take a reasonable deposit – this could help with clean-up costs if they do leave mess behind .
• Taking out legal expenses could help cover costs when trying to evict a tenant .
• Cannabis factories are a lot more
common than people would think . Check if your insurance policy covers illegal cultivation of drugs . Also , be aware of any conditions that you / your managing agent need to comply with . Claims costs can run into tens of thousands , so make sure you meet all of the requirements of your policy .
As with any policy it ’ s important to discuss your requirements with a broker who can advise you of the best cover to suit your needs . For information or advice or to check you have the right insurance for your specific needs please get in touch .
For more info : www . bluefingroup . co . uk
ian . sharpe @ bluefingroup . co . uk 01793 714431
Swindon
New Industrial / Warehouse Unit 1875 sq ft
TO LET
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