Dilemma regarding rent charge for friend

Shes not been charging them market value in a desirable area. They've had it good then havent they really.

Things don't happen that quickly. There would be at least a month's rent gone and then agency fees. I'd be stunned if she wasn't down more than £3000 at the end of it, if done in stealth.

Presumably they weren't under market, or as much, in the begging, so this my overstate how long they've had it good for.

Have you not increased the rent at all in 10 years? If not, yanbu to put it up from time to time!

You should at least raise the rate by inflation. Tell them you need to do that and they can decide what they want to do.

Wow. Some friend you are. Lying is never ok.

Investing your money is probably easier long term but I would t see it as £3000 down but rather you have accepted a lower return for a guaranteed rate of return. Bad tenants can cost a fortune - I would prefer the safe return.

Why not give her the option to pay more rent instead of giving her the boot? She'll have to pay more elsewhere anyway and she's trustworthy.

This happened to an elderly friend. She was tricked into moving so they could charge more, and they had never given her a rent increase. She would rather pay more rent and stay.

And in response to @Grammarninja

To clarify:

Evict. Tell friend it's to sell empty.

Replace with new tenant at market rate.

Even with vacant time, OP is going to struggle to get 3k a year extra out of the current tenant particularly quickly and in 5 months when Renters Rights comes in, there will either be even more renters than properties, which will drive up market rates, or a glut of housing on the market which will slow sales (and is a decent "reason" why OP may decide not to sell after all...)

basically im suggesting she evicas and immediately replaces her tenant and lies about it to friend under the guise of selling and then changing her mind.

I also wonder if OP has a tenancy in place for the current arrangement and increases anyway.

What about a 10% increase? Your costs etc have gone up over 10 years and you need a fund for maintenance. It's perfectly reasonable to raise the rent each year by a small amount.

So they can sell it

what are you going to do with an empty house? what is the point in that?

Sounds like the good idea.

Your son needs to be earning money from this flat as well as being able to cover all the costs and repairs.

I'd start by raising the rent £50 a month and explain to friend that you need to start being able to cover repairs for the flat.

You are subsidizing your friend at the expense of your special needs son's future financial security.

Look at it that way and make a decision.

You need to put away as much as you can for him. You need to talk to your friend and tell them you need to raise the rent, and why, ask them to move and find renters who will pay more, or sell up.

I’d increase the rent a little each year and invest what you can down your child. When will they have to move out for your son to move in? You could use that as a reminder that their time living there is limited and remind her she needs to look at what real rents / mortgages cost

I’d increase the rent a little each year and invest what you can down your child. When will they have to move out for your son to move in? You could use that as a reminder that their time living there is limited and remind her she needs to look at what real rents / mortgages cost

I’d increase the rent a little each year and invest what you can down your child. When will they have to move out for your son to move in? You could use that as a reminder that their time living there is limited and remind her she needs to look at what real rents / mortgages cost

I’d increase the rent a little each year and invest what you can down your child. When will they have to move out for your son to move in? You could use that as a reminder that their time living there is limited and remind her she needs to look at what real rents / mortgages cost

Have a discussion his with her if she’s £3000 under market value put her rent up to cover half of this cost any money that’s profit should go into isa for child you don’t need to mention this just say you need it for his costs offer her the opportunity to move out if she can’t afford it you are not meant to financially support your friends and flat was bought to create nest egg for son. That’s the most reasonable thing I can think of.

People seem to suggest that it’s either a good tenant OR £3k a year when of course that’s a false dichotomy. It is perfectly possible to have both. You are losing £3k that could be supporting your son, and your tenant is hugely benefiting from your generosity. You have lost somewhere in the region of £20-£30k so far - enough to recruit an almost full time carer. In your shoes I would tell your tenant you can no longer manage it yourself and are turning it over to an agent. They will ensure it’s up to currently legislative requirements and will set the market rate with inflationary increases. They will also properly vet future tenants. Ultimately, you’re not a charity and your priority is securing your son’s future. You never know - they may be able to afford it.

No she's paid below market rent for herself.

We have a similar issue. I have a family member in our rental house who can't afford the market rates here. The house should be getting £1200-£1300 a month but they only pay £800. The house has a mortgage and we hardly get any change from what they're paying. There was a substantial repair needed this year that we couldn't afford to pay so now have a £100 a month finance deal on it too.
We feel stuck between a rock and a hard place knowing we need more money from it but it will make them unable to afford it and become homeless.

To be honest I question the point in the OP keeping the asset.

it doesn’t seem like the child is going to be able to manage the property should anything happen to the parents. For the parents it doesn’t seem that they need the rental income or the hassle that comes with this property.

if they did keep it, I think a 250 quid increase a month may be too hefty and threaten the friendship. Also the threat of losing a good tenant who has made their life simple is a risk.

id just sell up

C’mon, your friend is taking the piss by not paying you a fair rent for the property. This is money you need for your son’s future.

If she is going away on hoIidays and not saving towards buying her own place, she’s obviously expecting to sponge off your good will forever!

Either put the rent up to the market value or sell the property and invest your money elsewhere where it can work for you without any strings.

Have you increased the rent at all in 10 years OP? Because if you haven’t, I think your tenant has been very lucky and you might want to think about increasing it slightly (a small percentage) because you are setting a precedent that could be troublesome longer term.