Court delays leave landlords out of pocket

We often hear stories in the press about disreputable landlords, but seldom about the problems of a responsible landlord with a non-paying tenant.

Unfortunately, the reality is that court cases can take an age to be heard for the landlord hoping to regain possession, find a new tenant, settle the debts he’s accrued or catch up on buy-to-let mortgage payments. The legal system is letting landlords down: the courts are clogged, there are insufficient judges and cases are taking months to be heard.

Worse still, there are some tenants fully able to pay but deliberately exploiting the backed-up legal system.

The delays stem from budget cuts made to the Ministry of Justice at the beginning of 2020, which have exacerbated problems that the system was already experiencing, including court delays, last-minute cancellations, and shortages of both judges and county-court bailiffs. In the two years since then, the situation has deteriorated even further.

Legitimate, responsible landlords are becoming frustrated with a system that leaves them waiting month after month for a hearing and then, when possession is finally granted, having several more months of grief as they wait for a court-appointed bailiff to become available.

Going to court is a worrying time for landlords as their income has likely taken a hit, they may be in real financial difficulties themselves, but they remain at the mercy of an underfunded legal system. And even when a case does get to court, proceedings can be halted if the landlord has made even a minor error in the prescribed information or has failed to sort out a maintenance issue with the property.

What's more, the proposed Renters Reform Bill with its plans to abolish Section 21 could make the situation even more problematic, as every eviction would require a court hearing.

Although there is no sign of a resolution to the problem in the short term, landlords can take steps to protect their interests:

• Ensure you are scrupulous with the administration and your responsibilities as a landlord.
• Address any issues with non-payment as soon as possible.
• Invest in insurance to protect your rental income and cover legal costs, should a tenant default.
• Consider using a specialist lettings and property management agency who can deal with these issues for you.

If you have any questions about any aspect of landlord legislation or would like us to take the burden of managing your rental property away with our property management service, please contact us on 0161 511 5339 or complete our contact form.