Entirely Property

MANCHESTER PROPERTY NEWS


Challenging tenants forcing landlords to sell


One in three landlords are considering selling their rental properties due to problem tenants, with unpaid rent and damage running into thousands of pounds cited as the main problems.



Challenging tenants forcing landlords to sell

One in three landlords in Manchester are considering selling their rental properties due to problem tenants, with unpaid rent and damage running into thousands of pounds cited as the main problems.

 

48 percent of landlords in the city have had issues with tenants who don’t pay the rent on time, according to a new survey commissioned by online letting agent MakeUrMove.  

 

21 percent have also faced large bills when tenants have left properties in a state of damage and disrepair. Many have had to pay thousands to restore their property after a tenant has moved out, with one landlord left with £16,000 of damage. Landlords say damage caused by tenants far outstrips the sum of the deposit usually taken at the start of the tenancy and held in the government-backed Deposit Protection Scheme.

 

This pressure is leading the majority of ‘good’ landlords, who try their best to support tenants, to feel they can’t continue to rent out their properties. The study found 97 percent of landlords in Manchester believe it's important to keep tenants happy, 97 percent have a good relationship with their tenants and 26 percent update items for the benefit of the occupant. Despite their best efforts, landlords are suffering when tenants don’t repay the favour, with 34 percent of landlords saying their biggest worry is problem tenants.

"Stress and financial pressures caused by challenging tenants is a sure fire way to put Landlords off and steer them away from further investment."
MakeUrMove managing director, Alexandra Morris



 

MakeUrMove managing director, Alexandra Morris, said: “Over half (55 percent) of landlords in Manchester are ‘accidental’ or ‘casual’ landlords, meaning they only have one property and rent it out to supplement their main working income. As these landlords make up the backbone of the British property market, it’s important they feel happy to carry on letting. Stress and financial pressures caused by ‘challenging’ tenants is a sure fire way to put them off and steer them away from further investment.

 

“This could also be a real worry for smaller landlords when it comes to cash flow. Generally, as long as the rent is coming in every month to cover mortgages and other associated costs, smaller ‘casual’ landlords don’t often plan for bigger costs caused by damage from tenants or lack of funds due to unpaid rent. As a result, when a big outlay comes around, these landlords find themselves in trouble, and there’s very little protection offered from the government against these things.”

 

Other issues faced by landlords in the city include tenants refusing to leave at the end of their tenancy (22 per cent) and extra people living in the property who are not on the tenancy agreement (28 per cent). The latter could even put the landlord at risk of breaching Right to Rent provisions, which may in some cases, amount to a landlord being found guilty of a criminal offence following changes to the Immigration Act 2016.

 

Morris added: “Legislation is currently swinging towards tenants, at the risk of undermining the vital role played by private landlords in the UK housing market. Legislation such as the proposed deposit cap could make it even harder for private landlords to deal with challenging tenants, resulting in further pressures on landlords to sell up. Whilst landlords selling their properties may appear to offer some short term benefits for buyers, it cannot deal with the systemic problems surrounding the lack of housing supply. It will also reduce supply in the rental sector, which will increase demand and likely only increase pressures on the remaining landlords to increase rents.”   




DISCLAIMER: The statements, opinions, views and advice expressed in this article are those of the author/organisation and not of ENTIRELY. This article should represent information correct at the time of publication however whilst every care has been taken to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. ENTIRELY will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within this article or any information accessed through this site. The content of any organisations websites which you link to from ENTIRELY are entirely out of the control of ENTIRELY, and you proceed at your own risk. These links are provided purely for your convenience and do not imply any endorsement of or association with any products, services, content, information or materials offered by or accessible to you at the organisations site.







CRE Property & Construction Consultants


CRE are a team of Chartered Building Surveyors and Project Management Consultants that operate across the United Kingdom. CRE offers customers a new and refreshing approach to commercial property and project advisory services.






Sovini Group

housing


The Sovini Group comprises both not-for-profit, and commercial enterprises, and its purpose is to bring together complementary organisations which have similar values and aspirations in both the not-for-profit and commercial sectors.






One Vision Housing

Housing association


One Vision Housing is a Registered Provider of Social Housing with approximately 13,000 homes across Sefton, Liverpool and Wirral.We were formed in October 2006, following a successful stock transfer from Sefton Council and are a not-for-profit organisation, regulated by the Homes and Communities Agency.One Vision Housing is part of the Sovini Group which was formed in December 2011.






Pine Court Housing Association

Housing Association


Pine Court Housing Association is a registered social landlord providing over 450 quality affordable homes in Liverpool and Wirral.Formed in 1986, Pine Court Housing was originally established to provide quality homes and housing services for those in need, with a specific focus on the Chinese and South East Asian communities.






Intelligent

Business Sale Experts


Intelligent is unrivalled in the sale and purchase of privately owned SMEs such as Convenience Stores and Hotels, whilst Intelligent Corporate focuses on owner operated companies valued from 0.5million to 10million. The operational business is divided into key sectors, offering market leading advice for both buyers and sellers. Intelligent have developed their business through using bespoke, market leading technology and employing a dedicated, professional team.






RECOMMENDED FOR YOU ON ENTIRELY NORTH WEST