Why a bad tenant can be far worse than no tenant at all

There are few people who can escape the current slide into recession, and landlords will be hit particularly hard as tenants struggle to pay the rent, or in a rising number of cases, simply decide not to.

Landlord Action, a company helping landlords evict bad tenants, has seen business rise by 25 per cent this year and now serves eviction notices at the rate of 75 a week.

So-called professional bad tenants, who flit from property to property without paying more than a month’s rent, not only leave landlords losing thousands in unpaid rent, but the tenants often stay put for up to six months before they are evicted.

By law, landlords cannot serve a section eight notice to terminate a tenancy until the rent is eight weeks overdue. It can then take another two months to get a court hearing and although that usually goes in favour of the landlord, getting bailiffs to evict can take several weeks more.

The problem is particularly acute at the top end of the market and landlords in Chelsea, Knightsbridge and Hampstead have all been caught out by the scam.

There are telltale signs of a rogue tenant: they want to move in quickly, cutting the time a landlord has to carry out thorough checks. They showing very high balances and payslips (which are easy to forge) to prevent a credit and employment check. And they have lived at previous addresses for a short time, usually no more than six months.

Sadly, bad tenants do not always receive a county court judgment if they are evicted, so simple checks will not always reveal their delinquency.

If you are in any doubt about a prospective tenant’s credentials, check them yourself: visit their previous address and speak to past landlords. Check their role with their employer, and if they are self-employed speak to their accountant, and never accept a bank statement but ask their bank for a reference. Professional non-payers are often well known to local letting agents and porters in big apartment blocks, so it is always worth calling a few to see if the applicant’s name sets alarm bells ringing.

Unfortunately, there are also rogue letting agents who work hand in glove with bad tenants. Their fees may be temptingly low but you pay for what you get. Always use an established agent whose reputation stands or falls by the quality of their tenants.

The good news is that you can take out rent guarantee insurance to protect yourself, but read the small print very carefully as insurers are renowned for finding a way to avoid paying out.

A good tenant is worth their weight in gold but a bad tenant is worse than no tenant at all.