Nobody enters the property industry, looking forward to tenant evictions. For the most part, when the need for eviction occurs, it is usually because of a bad tenant, who has already given you months of grief and anguish.
According to Shelter charity in England, bailiff evictions have risen by 39% in just 3 months, towards the end of 2022. In the USA, it’s estimated that a shocking 2.3 million people are removed from their homes every year – and in Dubai, more and more landlords are becoming fed up and financially stuck because of unpaid rent.
While the story of evicted tenants is hard to hear, the truth is, badly behaved tenants are causing enormous problems for landlords.
In fact, recent research from ‘The Reluctant Renters” states that of the 4.4 million renters in the UK, 14% of them (that’s around 616,000 people) have reported symptoms of depression – caused by extreme stress. These statistics are said to have risen by another 50% – across the world – since the dawn of the pandemic.
So, should the business of being a landlord really rob a person of their mental and emotional well-being? Read on to find out more about the impact of tenant evictions on landlords, and how we can abolish this headache altogether.
The Cold, Hard Truth About Evictions
An “eviction” is a legal proceeding by which the landlord seeks to reclaim the rented premises, causing the tenant to vacate. Even though the property legally belongs to the landlord, the process of asking a bad tenant to leave is often costly, lengthy, and complicated.
Tenants have statutory rights (across the world), so even if they have breached their contract and cost you as a landlord a lot of money – they are protected, and have the right to appeal against any decision you make.
Unfortunately, the internet is rife with horror stories about terrible landlords who throw their tenants out on the streets – yet there are fewer stories in favor of landlords, many of whom are not the multi-millionaires with lavish property portfolios that many people make them out to be.
In recent years, television shows such as “Can’t Pay? We’ll Take it Away”, and “Bad Tenants, RogueLandlords’ ‘ have started to shine a light on the problems faced by landlords. But when we see that evicting a bad tenant can take anywhere between 3 months to 12 months (while the landlord is most likely not getting paid rent), then it makes clear how underserved legitimate landlords really are.
The Common Reasons for Tenant Evictions
The most apparent reason for tenant eviction is unpaid rent. Generally speaking, in the UK, USA, and Dubai, courts will favor the landlord on this occasion – and very rarely allow a tenant to continue living in premises if they do not pay their dues.
However, the process of eviction (even in this case) is long and laborious. Most landlords will wait at least a couple of months before taking a tenant to court – as court proceedings are expensive. But by the time the legal proceedings for eviction have been put in place, the landlord could be out-of-pocket by thousands and struggling to pay the mortgage on their property.
Another common reason for tenant eviction is property damage and “bad” and socially irresponsible behavior. In the USA, 10% of the population are said to have drug use disorder at some point in their lives, this normally leads to financial struggles and callous behavior – no longer making these people reliable tenants.
In Dubai, a violation of the law is taken very seriously against tenants – however, the process of eviction can still be arduous, given the strict regulations put in place by RERA (real estate regulatory agency), that protect the rights of the tenants.
The Long and Laborious Process of Tenant Evictions
In Dubai, tenancy disputes are subject to the provisions of the law (Law No. 26 of 2007 Regulating the relationship between landlords and tenants in the Emirate of Dubai). In the event that a tenant has breached their contract (in most cases, not paid their rent), then the landlord may demand monies owed, or the eviction of the tenant, prior to the expiry of the tenancy period.
If the tenant fails to pay the outstanding rent (or part, thereof) within 30 days, the landlord can demand eviction through a case filed before the Special Tribunal in the Rent Committee – which will issue an award to the tenant to vacate the premises. Therefore the landlord themselves cannot evict the tenant, only the authorities can – and this generally costs a lot of time and money.
Both the UK and USA temporarily banned evictions during the peak of the coronavirus pandemic – for a stretched amount of time – as a way of protecting tenants, who were struggling to pay rent. While this was a noble gesture on behalf of the authorities (and genuinely helped legitimate tenants) – it once again placed struggling landlords between a rock and a hard place. Not only was finding new tenants near impossible but earning rental income from the existing ones had become a struggle, too.
The laws in the UK and USA (like in Dubai) protect the statutory rights of the tenants. No matter how badly behaved a tenant is, British and American landlords are required by law to give their tenants a sufficient notice period (2 months according to Section 21 in the UK and a similar summons must be served in the US), before beginning any eviction proceedings.
During this time, the tenants may be causing further damage to the property and bad-mouthing the landlord out of resentment, causing real reputational damage.
Can We Abolish the Pain of Tenant Evictions Altogether?
While the industry has introduced new tools and strategies to “vet tenants” – with better checks and background searches, many bad tenants still fall through the net.
Unfortunately, the business of dealing with people is largely unpredictable and there’s no telling when a tenant will lose their job, fall sick, or decide that they no longer want to cooperate with you.
At Luke Capital Group we have worked with over 300 landlords worldwide and eliminated the pain of stressful evictions and unreliable tenants. Property landlords who rent their property to us are not only guaranteed rent for up to 8 years, but they can safely wave goodbye to the headache of tenant evictions – as we manage the entire tenancy journey. This includes finding the “right” tenants and looking after the property, to ensure no damage.
While the industry continues to tell us that uncomfortable evictions are simply “part and parcel “ of being a landlord, we have taken it upon ourselves to look after property landlords like you, and guarantee your peace of mind and mental well-being.
The best way to survive tenant evictions is to ensure they don’t happen at all. Find out how you can explore these life-changing opportunities with Luke Capital Group, by getting in touch with one of our friendly team members.
