Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
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:
Goooooooooooooooooooooood · 30/07/2013 17:39

I trust you got that in writing tittytittyhanghang. I wouldn't trust a bank manager as far as I could throw him,

oohdaddypig · 01/08/2013 09:01

Selfesteem - most lenders have a block policy to cover themselves in this scenario ie uninsured mortgaged property that burns down etc. The real risk is to the OP. and yes, lots of people don't bother seeking a consent letter for letting. I am not for one minute suggesting that is sensible - but it goes on and lenders know that.

UptheChimney · 01/08/2013 10:31

Oh Pictish, that's tough. But I think I would take the hit, as you are contemplating. I intermittently rent out a house (former family home) and like you, just want it to cover costs.

But, "covering costs" means a 10% contingency addition to me. And even with people I know, I do the standard lease. You can buy one from Smiths. I have decided, in the past, not to take a deposit, but I acknowledge the risk. I find disputes over money with friends really uncomfortable, so my policy is to make it all legal, to protect both them and me. And I say this to them.

Thing is, that renters even friends usually don't appreciate or care for a property in the way an owner would. I don't mean that all renters trash places, just that they haven't invested time, money etc in a property, and rarely feel the responsibility that the owner does. Why should they? I'm not criticising, just stating a logical fact. I wouldn't expect a tenant to feel the same way about my house as I do.

So you need to build in a little protection for yourself. And let's hope that if he's as nice as you say, and his family is a good one, they will eventually realise that there's a debt to pay.

But with your next tenancy, please, put it on a more business-like footing, and protect both your tenant and yourself. It's not very complicated, and there are tax benefits.

BuntyPenfold · 01/08/2013 12:31

I feel for you OP, but I think you will have to take the loss this time.

My late employer owed me ££££ in wages, and reminded me he had cancer every time I asked for my many months unpaid wages, alternating this with begging me not to leave as he wanted to keep the business going until his daughter could move here to take over.

I was and am both Sad and Angry. I don't like being emotionally blackmailed.

lottieandmia · 01/08/2013 12:36

In your situation I would have to let it go, although it is bad for you of course.

Do you not think it might be better for you to let the flat out through an agent? Then you would probably still get enough money to cover the mortgage and you wouldn't have to deal with agreement problems.

Buttercup4 · 01/08/2013 13:05

tittytittyhanghang what the bank manager told you is incorrect. Typically bank managers these days are not qualified mortgage advisers and have very little understanding of the legalities behind mortgages. They are only interested in you taking out the mortgage as it helps them to meet their targets. I know this because I have been working in financial services for my while working career and I worked in a high street bank fir 6 years.

Renting out a property that is on a residential mortgage is fraudulent (unless you have express written permission from the lender) as you would no doubt have to pay a higher rate and go through more scrupulous check higher deposit etc.

If he is giving you friendly advice, he should also let you know the legal ramifications if his "friendly advice".

oohdaddypig · 01/08/2013 15:00

Buttercup - it depends on the circumstances, and I don't know the full details of tittys, but I don't think her BM was incorrect.... You certainly don't have to convert every residential mortgage to a buy to let just because the property becomes tenanted,...

Buttercup4 · 01/08/2013 17:25

I imagine he was by the language he suggested she used. I have worked with Branch Managers who have had residential mortgages and rented them out as BTL properties and they have been dismissed on gross misconduct. Without knowing her circumstances I wouldn't comment further, however, I would always be concerned if it wasn't in writing.

borntotravel · 01/08/2013 21:10

I am not being funny but to find a place to rent in some places is such a lottery. Put an ad online/spread the word - i am sure you will find a tenant in no time. Ask a deposit so you could use it for your mortgage payment. Ask for a normal market price (do your research). Job done..

Emsmaman · 01/08/2013 21:17

born to op cannot use deposit for mortgage payment - that is what the deposit protection scheme is for

borntotravel · 01/08/2013 21:39

i am sure private landlord can use the deposit any way it wants as long its paid back after the tenant moves out. been renting places myself for year and paying private landlords deposits and not giving a d..m what he does with it as long as its paid me back then i move out. In the meantime OP would sort out her financial things hence if the rent is higher..

Ilovemyself · 01/08/2013 21:53

Lesmisabs. I don't see what morals have to do with any of this. You could say that the tenant was morally obliged to pay the rent as he had a verbal contract.

OP. I guess you couldn't let the house anyway, unless you have a buy to let mortgage. I would charge a bit more and put some aside if you do this again.

New posts on this thread. Refresh page