Tenant stopped paying rent: what can I do

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mercman

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Marietta,

It might sound unfair and crude, but in the main the country's problems were fueled by people that kept borrowing until the whole thing went T1Ts up.

Can i stop paying the rent and hand the keys back to the Bank.
I do not know of the full scope of the European laws on tenancy issues, but the UK laws are not that different to here
 

twofor1

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1,289
Can i stop paying the rent and hand the keys back to the Bank.
Yes you can, but the bank will sell the property for whatever they can get and pursue you for the balance plus costs.

From previous posts you also have a PPR with substantial equity, the bank can and will go after this to get whatever balance plus costs is due after they sell your rental property.

They might also choose to go after your PPR in the first place if they consider it more saleable than your rental property. (Assuming both mortgages are with the same bank) in my case anyway I know they can do this.

Unlike your tenants, its worth pursuing you.
 

ssiaman

Registered User
Messages
22
Hey Mercman,

you are jumping to too many conclusions here. I was looking for advice here on what my options were and not trying to determine what was the cause of the recession.

So my questions regarding the banks is what do the banks do in cases like this where you could have a tenant sitting rent free in a house for 2 years. If I cannot rent it, then I have no income to pay the mortgage.
 
M

mercman

Guest
Very simply, the Bank will advise you that this is not their problem, it is yours. Please refer to post No 22 which is the likely course of action a Bank might take. Read the terms & conditions of your loan document. I do not mean to be cynical, but this is pure basic stuff and the principles of borrowing.
 

ssiaman

Registered User
Messages
22
Unfortunately, I am in negative equity in my PPR so I don't think the bank can't do much with my ppr unless they want to throw me out on the street. Don't get me wrong, I want to pay the mortgage on the investment property but I cant if I dont get a penny rent.
 

PaddyBloggit

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3,363
but you can't use the excuse that no rent means no mortgage payments for your bank.

Can you renegotiate the term of the loan?

Not paying is not an option.
 

twofor1

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1,289
Unfortunately, I am in negative equity in my PPR so I don't think the bank can't do much with my ppr unless they want to throw me out on the street.
I think they can. I hope they don’t.

6 months ago you had equity of €135K on your PPR and €60K on the rental property.

1. one variable Rate mortgage which is currently rented. mortgage is 140k and house is worth maybe 200k. 23 yrs left on mortgage.

2. the other one is where I live and it is a tracker (ECB +.75) . worth about 250k and mortgage balance is 115k. 18 yrs left on mortgage.

http://www.askaboutmoney.com/showthread.php?p=1027300#post1027300Cost of giving up my tracker Rate
 

ssiaman

Registered User
Messages
22
yes that was true at the time but we could not sell the house so we decided to borrow and are now in process of extending our ppr. My estimates of the value of the houses did not turn out to be too accurate in the end.
 

lionstour

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324
Tell her you will pay her 1000 euro if she vacates and signs documentation that she has not paid her rent and is vacating the property of her own valition. its extreme but Id say she would go for it. Discuss the option with your solicitor.
 

SlugBreath

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252
Its just amazing how the system allows someone to stop paying rent while I still have to pay the mortgatge
Terribly unfair that you have to pay your bank back a mortgage that was given to you based on your own income and circumstances and your ability to repay.

Your mortgage has nothing to do with the tenant you chose.
 

MrMan

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Terribly unfair that you have to pay your bank back a mortgage that was given to you based on your own income and circumstances and your ability to repay.

Your mortgage has nothing to do with the tenant you chose.
Can we all get back to the point in hand here, the tenant is the one we should be angry with, another freeloader taking all that the system allows.
 
M

mercman

Guest
Can we all get back to the point in hand here, the tenant is the one we should be angry with, another freeloader taking all that the system allows.
The point in hand, if you choose to read he original post, was that could the OP simply hand the keys of the property back to the Bank. Little point in apportioning full blame on the tenant. We are not aware of the full picture between the landlord or the tenant.

For what it's worth if the OP wants shut of the tenant, very simply tell the tenant the property is being placed on the market for sale, and she and her child have two weeks to vacate the property.
 

twofor1

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For what it's worth if the OP wants shut of the tenant, very simply tell the tenant the property is being placed on the market for sale, and she and her child have two weeks to vacate the property.
This is true the landlord can terminate the tenancy if he intends selling the property in the next 3 months, if he gives the appropriate notice, minimum 28 days, depending on the length of the tenancy.

If the tenant agrees and moves out, great.

But if the tenant refuses, again all the landlord can do is follow the procedures laid down by the PRTB and in 12+ months will get a hearing etc…………………….........................................................
 

MrMan

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The point in hand, if you choose to read he original post, was that could the OP simply hand the keys of the property back to the Bank. Little point in apportioning full blame on the tenant. We are not aware of the full picture between the landlord or the tenant.

For what it's worth if the OP wants shut of the tenant, very simply tell the tenant the property is being placed on the market for sale, and she and her child have two weeks to vacate the property.
Chirpy as ever I see, I have read it and OP says that his tenant is refusing to pay rent, that is the crux of the problem. Without the tenant creating a mess there would be no need to look at alternative options.

As per your simple solution, if the tenant refuses to leave then the situation persists.
 

murphaph

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1,136
It would be even crazier to move in yourself and a few of your big burly friends. Very loud music with a young child in the house would also be terrible but then again .........
My thoughts exactly. No need to evict her, just "move in" with her. If you don't, you may have no roof over your own head by the time to completely usless PRTB get around to "hearing your case".
 

PaddyBloggit

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........

and then she'll make a complaint of assault (physical/verbal/sexual) ..... (or not)

If you move in carry witnesses with you!
 

murphaph

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If that's possible then great. Might be an idea to let the local guards know that you have a problem tenant and that you'll be moving in with her. The guards know this is a civil matter and you'd be breaking no criminal laws to move into your own property, so they'll just tell you to make sure there are no breaches of the peace. So, when she starts screaming, keep calm at all costs. Show the guards that it is she who's dodgy, not you.

In my experience the guards want nothing to do with these landlord/tenant issues.
 

Marietta

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If that's possible then great. Might be an idea to let the local guards know that you have a problem tenant and that you'll be moving in with her


Isn't it a dreadful state of affairs that the only recourse open to a landlord who is dealing with a 'problem tenant' is to move in with her.


Somehow I doubt very much the OP would be up for this.
 

twofor1

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My thoughts exactly. No need to evict her, just "move in" with her. If you don't, you may have no roof over your own head by the time to completely usless PRTB get around to "hearing your case".
Don’t get me wrong here. I think this tenant is way out of order but you cannot do this either.

Under Tenancy Obligations from A Quick Guide To The Residential Tenancies Act here;

http://public.prtb.ie/act.htm

Landlords must:
- allow the tenant to enjoy peaceful and exclusive occupation
- end

I am legally obliged to register my rental property with the PRTB and pay the registration fee, but there seems to be no obligation on the PRTB to carry out their function in a timely manner, which effectively makes them a hinderance to the compliant landlord and a substantial asset to the ‘’Professional Tenant’’ who knows how to take advantage of this situation.

Why can they not perform ? Are they understaffed or what ?

If the registration fee does not cover their costs I would happily pay a multiple of it to get an effective organisation that worked. 3/4/5 times the current fees would be better than a tenant sitting in my property for 12 months + effectively rent free.
 

Complainer

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Can we all get back to the point in hand here, the tenant is the one we should be angry with, another freeloader taking all that the system allows.
Indeed, we should be angry with the tenant. The OP should also be angry with the people who give 'advice' that will cost him €10k-€20k if he follows it, i.e. the roundabout advice to use physical threats or to move into the property, and the direct advice to cut off utilities.
 
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