Purchasing UK Buy To Let property and renting it out to tenants can be a fantastic financial investment, and many landlords are able to make money from their property investment, providing the property does not remain empty, does not require much renovation or repair and when tenanted, is occupied by tenants that behave themselves and pay the rent in full, on time, every month.

However, most landlords will face some issues with property and tenants eventually, and those who rush into things without doing thorough tenant due diligence will probably face this sooner rather than later.

There have been a number of reports in the press of landlords that have had evicted bad tenants in severe rental arrears, only to discover that as well as owing thousands of pounds in unpaid rent, the tenant had also trashed their property. At the end of a tenancy, landlords are often be faced with any number of minor repairs, often caused accidentally through general lack of care by the tenant, but as recently reported by the news media there have been a few extreme cases where tenants have caused thousands of pounds worth of malicious damage to properties, costing landlords dearly.

In a recent newspaper article, one landlord had reportedly spent months trying to evict bad tenants in rent arrears from his rental property by himself, instead of using a specialist eviction service. By the time the landlord eventually gained possession of the private sector rental property, it had been severely damaged. Carpets were pulled up, floorboards removed, windows smashed, the entire kitchen had been ripped out, banisters hanging from stairs, paint and obscenities were splashed across the walls and the toilet was deliberately blocked.

Incidents like this are blamed socially on the rising financial pressures faced by tenants, with stress levels rising as debts increase. Cash is diverted from essentials to go towards daily existence and they fall behind with the rent.

The landlord is entitled to serve a Section 8 notice, seeking possession of the rental property once rent arrears reach 8 weeks. The decision to evict a tenant is not taken lightly as there are legal costs to be considered but the action is necessary in order to protect his business asset. Some tenants do not see the landlord’s financial needs as their problem and see the decision to evict as a personal attack on them, striking back at the landlord by trashing the property.

With LHA housing benefit cuts due on 1st January 2012, the pressure for tenants claiming the housing allowance portion of the new Universal Credit payment is set to increase further.

Legal4Landlords advise all landlords to carry out the correct tenant referencing checks and to use a reputable lettings and property management agent when seeking tenants.

Landlords who wish to avoid being faced with a hefty financial outlay having properties repaired after damage has been caused should consider taking out a comprehensive landlord insurance policy, where damages can be taken care of quickly and with minimal stress as the cost of the repairs are likely to be covered. When you take out cover, don’t be tempted to simply go for the cheapest option. Check exactly what it covers you for. It should cover you for loss of income from when a tenant stops paying their rent and also the cost of repairing damage, whether it is accidental or malicious. Read the small print before signing up to a policy and check what excess you’ll have to pay. Landlords insurance is a necessary expense and a referencing tenants is vital part of the lettings process, so make sure your property asset is well protected.

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