Tenant abandonment can be hard to establish, leaving your agency in limbo. If you provided the tenant-finding service, the Landlord will be looking for your support when they find their property empty with no warning. Here’s what both you and your landlords can do.
What is tenant abandonment?
Tenant abandonment is when a tenant leaves a property before the end of a tenancy agreement without letting your agency or landlord know. In some cases, the tenant may also leave their belongings at the property, making it more difficult to determine what’s happening.
Signs that suggest tenants have abandoned the property, include:
- Rent arrears
- Keys left at the property
- Belongings removed
- Post left on the doormat
- Rotten food in the fridge
- Neighbours haven’t seen tenants in a while
- Neighbours report removals taking place
If you think tenants have abandoned the property, it’s important to try and establish what’s happened as it can lead to issues, for example:
- A loss of rental income
- Security issues if the property is left empty
- Problems with any property or landlord insurance which will typically only cover an unoccupied property for 30 days, leading to restrictions on cover
- Abandoned possessions to secure and sort out
Should tenants tell us when they’re going away?
In practice, tenants are unlikely to tell you every time they go on holiday. That said, if they know they will be away for more than two weeks, they should let you know as a courtesy.
Can we assume tenants have abandoned the property?
No. Under the Protection from Eviction Act 1977, tenants are protected unless you have ‘reasonable’ cause to believe they have stopped living in the property. In practice, this means you have to genuinely attempt to find out what’s happened before removing any remaining belongings and finding new tenants.
If not, you can be prosecuted for unlawful eviction.
Why does tenant abandonment happen?
Tenants might leave for any number of reasons. They may be struggling financially and feel that leaving is their only option. They could be in hospital, on an extended holiday, or abroad because of a family emergency and not got around to letting you know. In a handful of instances, it could be because they’ve been imprisoned.
What happens to a tenancy if the tenant is in prison?
If a tenant is in prison, they’re technically still tenants unless they tell you otherwise. Rent should be paid as normal. Usually, they can ask someone (like a relative or friend) to look after the property so that it continues to be maintained.
In many cases, tenants will then move back to the property (unless the tenancy isn’t renewed) on their release. You can find more detailed advice from the charity, Shelter.
How can letting agents prove tenant abandonment?
You’ll need to gather evidence that proves you have good reason to believe the property has been abandoned. This can include:
- Asking neighbours for a statement.
- Trying to contact the tenant using several methods such as letters, calling, texting or messaging through social media.
- Contacting next of kin, guarantors, or anyone listed in the tenancy agreement who can help.
Can letting agents and landlords enter an abandoned property?
If you want to go into the property, you’ll need to issue notice first. This should be in writing and posted to the address. If you receive no response after a reasonable amount of time (at least 24 hours) you can enter the property. If you can, taking a colleague who can be a witness is a good idea.
How do we reclaim an abandoned property?
If you believe that a tenant has abandoned the property, you can reclaim it under Section 57 of the Housing and Planning Act 2016. As with any eviction process, you must follow it carefully; if not, you could be accused of unlawful eviction and be prosecuted.
Under the terms of the Act, you can recover a property as long as all three of these conditions have been met:
Condition one – there is unpaid rent
Tenants will need to be in rent arrears. How much they owe will depend on when they’re supposed to pay rent:
- If they pay rent weekly or fortnightly, there must be at least eight weeks of unpaid rent.
- If rent is paid monthly, they must be in arrears by at least two consecutive months.
- If rent is paid quarterly or annually, they must be at least three months behind in rent.
Condition two – you have issued three warnings
You’ll need to issue three warnings. The first two must be sent to the tenant, any named occupiers, and any deposit payers.
You must also be comprehensive in attempting to contact everyone and post the warnings to every address (physical and email) you’ve been given.
The first warning should also be posted to the property or placed somewhere obvious within it. The warning should clearly state that you think the property has been abandoned and that your agency intends to change the locks and reclaim the property by a certain date.
You should also include the date you issued the notice, the date you think the property was abandoned and how the tenant (occupier or deposit payer) can contact you.
Most importantly, the warning should indicate the date the tenancy will end unless someone contacts you. This date must be at least eight weeks from the date of issue.
It’s a good idea to take photos of the notice and perhaps a video of you posting it through the door, in case an evidence trail is required further down the line.
If you don’t get a response, you can issue the second warning notice. This must be issued at least two weeks after the first warning but no more than four weeks. It can also only be given if the unpaid rent condition is met. The notice should repeat the details in the first one, but you should also add that no one has attempted to contact you about the previous warning.
The third warning must be issued within five days of the final date you gave the tenant in the first warning. This warning must also be posted somewhere visible on the property (but not so obvious that passers-by can see that you think the property is abandoned).
If you still receive no contact from the tenant, named occupier, or deposit payer after the third notice, you can issue a fourth that states the tenancy is now at an end. You can then reclaim the property.
Condition three – no one has contacted you
If no one attempts to contact you, you can continue through each stage of the warning process.
You must also be confident that you’ve exhausted all avenues to contact the tenant, named occupier, and deposit payer.
How can letting agencies protect themselves?
Your main responsibility is to ensure you’ve been as thorough as possible in establishing abandonment. Only then should you take action and start issuing notices.
It’s worth being cautious and documenting everything you do, for example, keeping clear notes about the steps you’ve taken and any attempts you’ve made to contact the tenant.
Fundamentally, the burden of proving abandonment comes down to you (or the landlord). This is made clear in the Protection from Eviction Act 1977, which states that anyone who prevents the tenant from living in the property is “guilty of an offence unless he proves that he believed, and had reasonable cause to believe, that the residential occupier had ceased to reside in the premises”.
What should we do with abandoned belongings?
If you know where the tenant is, you should make efforts to ensure the tenant collects their belongings or forward them on. Your tenant may contact you and give you permission to dispose of their belongings.
If you don’t know where they are, you’ll need to keep their belongings safe for a reasonable amount of time.
Originally, the Torts (Interference with Goods) Act 1977, was used to deal with ‘wrongful interference’ with goods. Under the conditions of the Act, it’s often felt that landlords should keep hold of tenant’s belongings for at least three months.
However, the Act doesn’t specifically refer to abandoned property left in rental homes and traditionally refers to people who leave their goods with others temporarily (for example, storage or for repairs). With that in mind, you may only need to keep tenant belongings for 14 days. After that, you can dispose of the items. You don’t need to keep their possessions at the property if this makes repairs or cleaning easier.
Can tenants turn up and reclaim the tenancy?
Yes. Even after you’ve issued all three warning notices and been comprehensive about using every means of contact possible, tenants can ask the courts to revoke the abandonment notices and reinstate their tenancy.
Tenants can only do this within six months of the final notice being issued. They must also have a reason for not responding and have evidence to support them.
How can we avoid a claim of unlawful eviction?
It can be complicated if the tenant turns up several months after completing the abandonment process, especially if you’ve changed the locks, removed their belongings, and found new tenants.
If you’re found to have unlawfully evicted tenants, you can be prosecuted. In serious cases it can result in a prison sentence.
If your agency is taken to court, it will help your case if you can show you’ve followed the abandonment process carefully and gave the tenant every chance to contact you and resolve the issue.
There’s also the possibility that the tenant will claim damages against you. This might be for costs they’ve incurred trying to find somewhere else to stay, or for the distress of having found themselves locked out of the property.
How can landlord insurance help in cases of tenant abandonment?
Landlord insurance covers a range of events, including malicious damage to property if it’s been abandoned and needs lots of repair. Legal expenses is also typically included. This can cover the cost of pursuing tenants who have breached the terms of their tenancy and pay for defence costs if a landlord is taken to court.
Rent guarantee insurance is a policy to consider for your agency’s protection if it loses out on fees because of missed payments. You can also highlight this as an extra option for landlords with landlord insurance.
If you want to find out more about rent guarantee or how your agency can benefit from referring landlords for landlord insurance, you can call us on 01603 649727.
Information provided in this article was correct at the time of publication. This article is intended as a guide only. Please note that legislation does change, it is always best to check the most up to date guidance on gov.uk.
