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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to be absolutely flummoxed as to what to do here! Moral dilemma.

137 replies

pictish · 28/07/2013 20:31

This may come over a bit dull and complicated...I would appreciate the advice of anyone who can be bothered to read.

Dh and I own a flat in the city. We live in a small town outside. The only reason we have the flat still, is because the housing market is dead. We'd sell it tomorrow if we could.

So we rent it out. So far, all our tenants have been friends, or friends of friends. We charge the minimum rent - just to cover the mortgage and no more. We don't make any money out of it at all. Therefore, the rent is really cheap. We don't even take a deposit.
We take the rent in cash on the 1st of the month to keep things simple and hassle free. The conditions are that we need one month's notice to quit.

So...my friend's brother has been renting it for the last year or so. On 11th July he texted me and said he was moving out on the 15th Aug, and would give me the 'remaining' rent on the 1st as usual. I asked him what he meant by 'remaining' and he said he meant half a month's rent, as he was leaving on the 15th.
I explained to him that the flat, like any other, is rented by the month, not the week, and that I would be expecting a full month's rent...even if he chose to move out early.
He didn't sound happy, but he agreed.

Now I have received another text...it says this...

"Hi - I have to let you know that I have moved out this weekend. As I have been told I have a tumour in my spine and I need an emergency operation so I will be in hospital a lot over the next couple of weeks/months. So I need to move out right away as I have no other alternative. I will get my mum to hand over the keys to you asap so you can get the flat rented out soon. Thanks again for letting me stay there."

His sister is a friend of mine. I saw her yesterday and she did mention the discovery of a tumour. We were all Sad about it, of course. No one knows if it is sinister or not yet. You can imagine what they are all going through can't you?

However...in my world, we are fucked financially because I think he is proposing to not pay any more rent.

Wtf do I do??

OP posts:
Lackedpunchesforever · 28/07/2013 20:34

You count your lucky stars that you are not facing such horrendous surgery, speak to the mortgage company to explain the situation and then sit down and work out what savings you can make in other areas to try and meet the shortfall this month.

Original poster
pictish · 28/07/2013 20:34

I haven't told dh about the text. I know he's going to insist that the guy pay.
This is horrible.

OP posts:
Original poster
pictish · 28/07/2013 20:35

Thank you lacked that is a very good suggestion.

OP posts:
hadababygirl · 28/07/2013 20:35

Well, you sound lovely and I understand you let the flat out with the best of intentions BUT this is the problem when you don't have deposits and legal stuff ticked. Sad not much you can do, really, sorry.

YouTheCat · 28/07/2013 20:35

That's a bit shit all round really.

I think I'd tend not to push for August's rent. I know he didn't strictly give you enough notice.

Do you think you could get anyone in the flat quickly?

RatUpADrainpipe · 28/07/2013 20:35

Do you have the rent deposit in a Tenant Deposit Scheme (by law you must)? Do the tenants have a Contract (if not you're stuffed). Do you pay income tax on your 'earnings' i.e. the rent?

From what you've said you sound as though you are letting this flat 'illegally'.

HollyBerryBush · 28/07/2013 20:36

Least of your problems if someone dobs you in for unearned income

rubyslippers · 28/07/2013 20:36

that is bad

but i don;t know what you can do - he may be seriously ill

can you take a payment holiday? Move to interest only payments for a while? Not sure of the rules with by to let

meanwhile, get ads on gumtree etc to get the place rented ASAP

mrscog · 28/07/2013 20:37

I don't think there's anything you can do, but I recommend that even if you carry on charging 'mates rates' you look into contracting next time. Also consider charging slightly more per month ?£40 so £10 per week so you can build a contingency fund for emergencies like this/fixing boiler etc.

SirBoobAlot · 28/07/2013 20:37

You feel blessed you're not having major surgery, and you start renting your flat out legally.

DoubleLifeIsALifeHalved · 28/07/2013 20:38

Oh dear, I see your problem, but really i think you need to rent it out quickly and absorb losses as much as you can... Unless you genuinely can't. We sometimes forget compassion in this world, and sometimes, its great to be able to do a good thing.

Original poster
pictish · 28/07/2013 20:38

I am renting it 'illegally'. Not because we are dodgy, but just because we don't want any hassle.

I know I haven't a leg to stand on...but him sending that text made my stomach lurch for two reasons.

OP posts:
JaneFonda · 28/07/2013 20:38

He still needs to pay, really. Was there a contract?

It's a horrible situation, but just because someone is ill, it doesn't mean they don't have to pay. You can broach it sensitively and nicely though, and still get paid.

For the future, it's probably best if you insist on a deposit first, just to set your own mind at rest a bit more.

RandomMess · 28/07/2013 20:38

Perhaps look at renting it out for more in the future and taking a deposit to cover up the loss this month?

DoubleLifeIsALifeHalved · 28/07/2013 20:38

Also get a deposit next time to buffer you...

BMW6 · 28/07/2013 20:38

I think I would let it go, give the benefit of the doubt on this occasion.

I would advise having a proper signed lease next time, with deposit etc to formalise the agreement so you won;t be stung a second time.

(BTW, when you say you only take enough rent to pay the mortgage so make no profit, you do know that only the interest on the mortgage is deductable for tax purposes, no capital payments are?)

HappyAsASandboy · 28/07/2013 20:39

Do you have a contract, and what does it say about notice to quit?

'The conditions' sounds like an informal agreement g rather than a contract. Without a contract I think you'd struggle to enforce anything.

Get the flat ready and let out ASAP. Figure out how you'll cover the shortfall, either with or without speaking to the mortgage company.

oohdaddypig · 28/07/2013 20:40

But how much rent are you missing out on by him not giving the full notice? Only two weeks' worth?

It would sound an utterly bizarre shocking thing to lie about IMHO. I mean, if you had to invent a sickness to avoid rent a tumour on your spine is fairly obscure?

I would re let the flat ASAP and wish him well, poor guy - and phone your friend to see how she is coping.

I don't mean to be unfair to you but if things are so tight why don't you let it at a market rate?

Original poster
pictish · 28/07/2013 20:40

Ok everyone - thank you.

I will take the hit. Fuck fuck fuck!

OP posts:
Original poster
pictish · 28/07/2013 20:41

To clarify - I don't think he's lying.

OP posts:
greenfolder · 28/07/2013 20:41

do it all above board and you would not have a dilema. rent it out for the proper market rent and have a buffer against voids. if you are being tipped into the abyss by someone missing 2 weeks you need to think again. it could be worse, he could have just stayed and stopped paying

LessMissAbs · 28/07/2013 20:42

I think morally you can do nothing about the rent, because morally you aren't entitled to it, as you seem to have no lease, no deposit and no written terms. You have adopted a laissez faire approach and therefore morally you cannot complain when your tenants do the same.

Its surprising something like this hasn't happened before. Although tbh it is now such a hassle and so expensive to rent property out in this country I'm not surprised more people don't do as you do in your position. If you did everything by the book, you would be well out of pocket and cheaper to leave it empty.

Rummikub · 28/07/2013 20:42

I'd let it go. But increase your rental rates from now on. It can still be cheaper than anywhere else, but you need o be able to cope financially with this type of thing. I have rented out before, tenants didn't pay anything for 6 months! Had to let it go and viewed it as a loss as they took care of the house.

NonnoMum · 28/07/2013 20:43

Nest time charge more and use proper legal agreements...

You have to take the hit this time...

NonnoMum · 28/07/2013 20:44

PS I think he is 'lying" (or exaggerating) as this is a pretty common thing people do to not be hassled for money etc.