Just need to hear a few opinions in this really as I'm making myself sick with worry and really don't need the stress.
I rented out my house (me and DH both had a house when we met, I rented mine out and moved in with him) to the same couple for just over 3 years. They had a 12 month contract that they renewed after every 12 months. They always told me that their intention was to stay in the house long term, and that would have been the case, although I found out that I was pregnant with our second baby, so will have 2 under 2 years old. Childcare in our area is extortionate as childminders are like gold dust and so my financial situation is going to massively change and rather than financially struggle, we have decided to sell my house to release the equity.
I tried to be as kind to the tenants as possible. I gave them 3 month's notice, but said that if they needed to extend that by a few weeks, provided that a sale wasn't about to go through, they could do whilst they were searching for a new place to live.
When they first moved in, the couple asked if they could erect a shed to keep the gentleman's motorbike in, which I agreed that they could. They have also made changes to the garden as well as putting the shed up, including removing 2 trees and putting in decking, plus removing the grass to the front of the property and putting gravel in it's place. They didn't ask me if they could do this, but kind of told me afterwards. It looked nice and I just thought as long as they are happy, it's fine with me.
When I put in notice to end their tenancy, they spoke to me and said that they had incurred considerable expense due to putting the shed upand changing the garden, so they would be out of pocket. To keep things amicable, I said that they could live in the property for the last 2 months rent free. They seemed happy about this and agreed, saying that they'd leave the shed where it is.
Fast forwards 6 weeks, they ask me to go around to the property, so I popped around after work. The gentleman tenant has told me that he is considerably out of pocket due to me asking them to leave. He said that they've had to downsize, as there was nothing of similar sized house to mine in their budget and had to move further away, meaning that his wife has had to hand her notice in at work (she works in the petrol station at the end of the road and walks to work) and they've also had to sell furniture and his motorbike. He then told me that everything that he has done to the garden has added significant value to the property as it looks so much nicer than what it was and so he should be reimbursed for everything. Taking away the two month's rent that he hasn't paid, he has asked me to pay him £2600 and if I don't pay, he's going to have to take matters further, and he said I really don't want to have to go through that.
At first I felt really sorry for him, but also I'm so angry that he agreed on 2 months rent free and now he's asking for more money. I'm also sick with worry that he's going to trash the house when he leaves. I has renovated the whole place myself and it was immaculate so I'd be heartbroken if anything happened to it.
My sister says that he wasn't entitled to a penny, even the free rent so he's just trying to play to my nice nature. I don't have the money to just pay him out, plus I don't think that I should have to pay for every screw and price of gravel that he's bought to change the garden, as it was perfectly serviceable to start with so didn't need any alterations to make it useable.
What would people do in my situation? Any advice? Sorry for the long post!