What type of landlords are getting repossessed?

Why are several landlords getting – or on the verge of getting – repossessed? This is becoming a common occurrence these days. Though, of course, only specific kinds of Landlords can be considered struggling.

The following are the types of landlords that are getting repossessed:

Landlords releasing equity

One of the most common reasons as to why a Landlord is getting repossessed is because they like to release equity. These are the kinds of Landlords that had the stupidity to acquire properties without realising that they do not have the means of obtaining their desired properties. In the end, the solution they have found is releasing equity from a property so that they can fund another property. It could be a smart move, if not for the fact that there are three potential outcomes in the property investment scheme – these are the booming market, the bustling market and the stagnating market. Values of properties drop significantly when there are drops in the market. So, what happens here? Properties become in debts that are higher than their value. The eventual result for the owner – repossession.Landlords getting Repossessed

Landlords with bad mortgages

Another common reason why Landlords get repossessed is if they took bad mortgages. Some people are not really acquiring properties because they want to invest; most simply wanted to take some action with the ease of finding a lender. Again, this idea turns into a nightmare when the market busts. Properties owners will have to chance to resell, pay the mortgage and remortgage. So, they get repossessed.

Landlords who do not understand the difference between Variable and Fixed Rates

Understanding mortgages are the secret of successful Landlords. A Landlord who takes a huge loan but does not understand the fundamentals is one that would surely fail. If you want to be among those landlords that can manage to survive even during the times when property prices have significantly dropped, then you need to understand that there is a difference between variable and fixed rates. If you fail to understand that if you got thrown into the variable rates after coming off the fixed rate, you are going to be in deep trouble. This could result in repossession.

Landlords who are short-sighted

Short-sightedness has no room for the property industry. Grabbing and running should not be an option if you want to invest in properties. It does not really matter if you know if you are buying at the start, middle or the end of the market boom, in the long run, long-term investment is always the winning option. If you invest in the short-term and then got caught up with the boom, then you would be surely get trapped in the long-term scheme that you are not prepared for. So, what happens? You get repossessed.

Basically, it is that type of Landlord who does not think beyond the present who gets repossessed. This is the type of Landlord who was only thinking of a fast return on their investment. This is the Landlord who fails to investigate and educate himself about the whole property buying schemes.

Do you need to inform your Tenant when you and they will be out of contract?

As a landlord, it is indeed your responsibility to inform your Tenant(s) on everything that is included in the contract; especially the date that they will be out of the contract. This should be standard operating procedure. Landlords should not depend on their Tenants to remember the expiry date of their contracts.

Importance of Informing the Tenants

So, inform the Tenants. It certainly will not do any harm. Do not wait for the term to expire or for disasters to occur before you start checking the contracts. Aside from the date of the contract expiration, it is also important that the Landlord informs the Tenant of the other details included in the agreement.Inform Your Tenant

For instance, if the contract says that the Tenant needs to vacate the property after the contract expires, the Tenant should be reminded of that at least one month before the said date. Landlords should know if the Tenants have made necessary arrangements regarding moving out and other details pertaining to the property.

If you are a Landlord and you want to make sure that your Tenant has the full understanding of the contract details, you should try to discuss everything before you actually let them move into the property. That is the best way of avoiding any issues in the future.

If you fail to inform your Tenant of the contract expiration, you may have to deal with an angry Tenant or a very damaged property. You should understand that if your Tenant needs to move out of the property after the term, they may actually leave without letting you know. You do not have any right to go after them then in the case you discover that they have messed up your property. Once the term has expired and the tenant left, you will be on your own. If there are damages left, then it is your job to fix that.

If the contract stipulates that the tenant can renew the contract, then you must be ready for the renewal contract to be signed before the existing contract expires. This is how a responsible Landlord should think. This is the kind of mentality that would definitely keep all the troubles away.

Having an open communication with your Tenant is very important. This will give both of you the chance to discuss matters during the tenancy period. Your Tenant gets to tell you about potential problems, and you get the opportunity to fix them before they become difficult to handle.

You should be available for your Tenants and they should be available for you. Communication is the key to a good Landlord-Tenant relationship. You need to know if your Tenant is happy with the place and the overall situation. If they have the option to renew, you should be able to find out if they wish to stay or leave.

Lastly, do not forget to check the contracts regularly. This is critical especially if you have multiple Tenants. Not all contracts are created equal, keep that in mind.

How Can I Stop My Tenants From Smoking?

If you have specifically advertised for non-smoking Tenants and if you have included a clause in the agreement stating that your Tenant should not smoke (and they should also not let anyone, like guests, smoke cigarettes, tobacco or other substances in your property) then you have every right to ask them to stop smoking.

In some cases, Landlords allow smoking in their property as their consent has been asked. If that is the case with you, then you should specifically inform your Tenant that they must first get your written consent before they – or their guests – can smoke inside your property. If you really are very much against smoking in your property, then you have the right to say no if they ask for your consent.Stop Tenants From Smoking

Laying down the law and enforcing it

Laying down the law on not smoking within a property is easier than actually enforcing it. If you suspect that your Tenant is breaking the rules by smoking within your property, then you have the right to make a request for them to stop forthwith. It is important to consider though that your tenant may not oblige, and they may refuse to stop. They may also deny your allegations that they are smoking and breaking your rules. What are you going to do then?

Your Options

As the Landlord, you have certain options when it comes to making sure that your Tenant does not smoke inside your property. Firstly, you can make them aware that you are very much against smoking by including a specific clause about it in the Tenancy Agreement. You can also advertise for Tenants that do not smoke.

In case you end up with a Tenant that does smoke, there are also options open to you. You can evict the Tenant on the grounds of breaking one of the Tenancy Agreement’s terms. The problem with this option is that you are going to have to attain a possession order from the court. The judge may easily agree to the eviction, but they may also consider that option to be harsh. In order to be sure that you can get the possession order, you must provide strong evidence that your Tenant smokes within your property. That should be enough to prove that your Tenant has breached the contract.

You can also inform your Tenant that if you catch them smoking inside the property, you are going to increase the rent after the initial fixed term or periodic term has ended. That should make them aware of how serious you are about your rules, and they may even consider kicking the habit for good.

It is important to bear in mind as a Landlord that you have the obligation to lay down the rules as clearly and precisely as possible. It is your duty to make your Tenant understand that the rules are created to be followed. If they have any problems with your rules, then they should find another place to live.


The NICEIC (The National Examination Council for Electrical Installation Contracting) is the electrical contracting industry’s independent, not-for-profit regulative body covering the whole of the UK. The NICEIC’s objective is to protect consumers against risky workmanship by raising technical standards within the industry.

Their website, (niceic.com) was set up to provide users a flexible way to find their regional electricians and a way for electrical contractors to promote their expert services to the customer.niceic electrical

Get a NICEIC Electricians today from £78 p/h.

Their Schemes include:

Approved Contractor

To search for an Approved Contractor go to Find a Contractor 

Domestic Installer

To search for a Domestic Installer go to Find a Contractor

Microgeneration Certification Scheme (MCS)

To search for a MCS Contractor go to Find a Contractor

Competent Persons Scheme

To search for a CPS Contractor go to Find a Contractor

Green Deal Installer

To search for a Green Deal Installer go to Find a Contractor

Green Deal Advisor

PAT Testing

To search for a PAT Testing Contractor go to Find a Contractor

Hazardous Areas

To search for a Hazardous Areas contractor go to Find a Contractor

All electricians have been assessed to make sure their membership with the National Examination Council for Electrical Installation Contracting and only NICEIC registered members are permitted to promote on their site.

They have been assessing the competence of electricians for over 50 years. NICEIC’s objective is to save everyone who uses power from unsafe electrical installations. To obtain this, they keep a register of qualified and competent persons.

Electricians register to them are approved to self-certify their electrical work without obstruction from local authority building control. This saves you money and time when carrying out work that needs warning under the Building Regulations.

They operate independent complaints handling. If the electrical work of a registered engineer is found to be below the accepted professional standard, they require the specialist to fix the work, at no additional cost to the customer. The National Examination Council for Electrical Installation Contracting is treated solely with the safety and industrial standard of the work carried out by authorized electricians, and the requirement for certification and periodic inspection reports which approved electricians are responsible for producing.

They expect its registered electricians to provide a quality service to their customers and, therefore, attempt to resolve all complaints about the technical requirement of their electrical work. If a consumer and an authorized electrician are unable to fix a stated deficiency in the professional standard of electrical work, the client can make a complaint to NICEIC. They will help with the settlements between the complainant the contractor.

Enrolment with NICEIC is voluntary, however electricians that are competent and reliable about the service they offer consumers would consider it a priority to register. Over 20,000 electrical engineers are registered by NICEIC, covering the UK, including Northern Ireland.

There are lots of advantages of using an NICEIC-registered electrician. NICEIC has been examining the technical skills of specialists to protect everyone who uses electrical power from hazardous electrical installations in their houses, workplaces and leisure.

Understanding House in Multiple Occupation Regulations

Do you live with more than one person who isn’t a member of your family? Maybe you’re a student sharing a house with others. Or perhaps you rent a flat with some friends. Whatever the case, it’s important that you know about the potential legal implications and responsibilities of sharing a house. Sharing a house can be fun and cost effective, but you should make sure that you’re properly informed about the safety regulations and legal requirements so that sharing a house doesn’t unnecessarily become a headache. Here are the facts you need to know about living in an HMO.House in multiple occupation (HMO)

What is a House in Multiple Occupation?

A house in multiple occupation, or HMO, is a home where at least three tenants live, sharing more than one household, sharing a bathroom, toilet or kitchen facility. This means that in an HMO you live with at least two other people, who you aren’t related to, sharing the regular household facilities and in this way living together. Additionally, if the house is at least 3 stories high, at least 5 tenants who aren’t one household live there and they share living facilities it is classed as a large HMO. It can be a single large house with multiple bedrooms, or it can be divided up into separate self-contained flats or bedsits with common areas for the bathrooms or kitchen.

The definition of ‘household’, of which there must be more than one to constitute a HMO, is either a single person or living together as a couple or a family who are married, relatives or half relatives such as aunts or uncles, cousins, siblings or grandparents, or step-parents and step-children. Same sex couples are included in the legal definition of a household.

Staying in a HMO tends to be cheaper than living in a one bedroom flat for tenants. The average saving for a tenant living in an HMO rather than a single flat has been estimated at £1600 per year. This is due to the fact that HMO agreements include utility bills in the rent, as it can be hard for landlords to distribute costs for utilities fairly amongst multiple tenants. The cost may further be reduced through the sharing of food through communal meals, meaning that tenants can take advantage of economies of scale.


A large HMO or a HMO being rented out by a landlord requires an HMO license. The HMO license was first introduced in Scotland in 2000, but is now granted in England, Wales and Northern Ireland as well. Thanks to the HMO licensing scheme, a HMO can be granted a license under certain conditions. The conditions to be met include the installation and maintenance of smoke detectors and fire doors. You must also ensure that the size and facilities of the house are suitable for the number of occupants, and that the manager of the house, you, are ‘fit and proper’, without a criminal record and not in breach of landlord laws or code of practice. You must send the council an updated gas safety certificate as well as provide safety certificates for all electrical appliances if requested.

The licensing of HMO’s is undertaken by local authorities. Authorities have the powers to vary the minimum size of the property to be licensed, the license fee and the conditions of the license. This means that, if you are considering obtaining a HMO license, you will need to find out what the criteria are in your local area. It’s your responsibility to know what requirements need to be met. You should also know that renting out an unlicensed HMO could result in a fine of up to £20,000. A HMO license is valid for 5 years, after which point it will need to be renewed before the property can be rented again. If you own multiple HMO’s, you need a separate license for each property.

Is a HMO Right For Me?

As has been said, HMO’s can be cost effective for people who would otherwise be living alone. It is a popular choice for groups of people, such as students, who are planning on living together. Young people who are finding it difficult to get on the first rung of the property ladder are likely to take advantage of the reduced costs that HMO’s can bring. But those who are elderly are also more commonly living in HMO’s nowadays in order to benefit from the security and sense of community that it can bring. Elderly people tend to be more socially cut off from friends and family, so HMO’s can help to give them greater freedom and autonomy, as it can allow them to share costs as well as household chores. Other groups of people that could benefit from HMO’s include groups of single parents, small religious orders or business partners.

When viewing properties that are HMO’s, you and the people you intend to be living with should know what to ask your landlord and what to consider. It is prudent to find out if the HMO has a license, as well as when the license needs to be renewed. You as a tenant should know what standards apply locally to HMO’s and what forms of maintenance and repair your landlord is obliged to undertake. If you wish to make a complaint about the quality or living standards of a HMO, then you should contact your local council. Councils are responsible for enforcing the standards of the license and can require landlords to make the repairs necessary to maintain these standards.