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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think about kicking out (good) tenants?

394 replies

pctmmn · 11/08/2020 13:36

I've had them for over three years and never missed a payment. But in April they said they were struggling so offered a 1/5th rent discount for three months. When this ended they asked for another three months. It doesn't affect my bottom line has I've taken out a 6 month mortgage holiday and the payments won't increase when they start again as it's added to the term.

I've been able to build up a bit of cash, but one works at a hotel and the other manages a resterant.

Would I be unreasonable to ask them to confirm the full rent needs to be paid for September else I'll give them notice? I really want someone in there paying the full rent and it feels like I'm subbing them right now.

OP posts:
Lochroy · 11/08/2020 15:19

Not going to pretend I 100% get this, but surely if the mortgage holiday has been added to the term, then it is costing you more money to have taken the mortgage holiday? In which case YANBU to request full rent or give notice.

Thewheelsfelloffthebus · 11/08/2020 15:20

Oh and I didn’t include estate agents costs. Since you last let the tenant fee ban came into place as well. So all costs will be on you.

Pobblebonk · 11/08/2020 15:24

@worriedandannoyed

Some landlords were passing on the payment holiday to their tenants as a gesture of goodwill. If you're not out of pocket what's the problem? What are the chances of finding good tenants again?
OP will be out of pocket, given that she still has to pay off the full mortgage, albeit over a slightly longer period.
44PumpLane · 11/08/2020 15:25

As others have said a mortgage holiday will actually increase the amount repayable by the OP in the long term as there will be additional months interest to pay, however can I ask why you took the mortgage holiday OP? Were you worried you wouldn't be able to pay the mortgage if the tenant defaulted or were you just hoping to build up some cash?

I would imagine that 4/5's rent would cover the mortgage so really the mortgage holiday was a choice that you took rather than a necessity? Is that correct? If so why would you?!

Personally, as a landlord, for good tenants I'd absolutely grant the rent reduction extension. If you feel you genuinely can't afford it ask for a payment plan for the reduction in the next 3 months rent to be paid back starting x date at y per month on top of normal rent.

But to be fair, good tenants are worth their weight in gold and we do everything we can to hold on to ours!

BacklashStarts · 11/08/2020 15:27

Seems a bit nuclear. From their perspective they aren’t taking advantage, they asked, you agreed. If you now want to end that then fine, but I don’t know why you’re getting wound up before you’ve even broached it with them.

Purpleartichoke · 11/08/2020 15:29

Right now you are getting 12*(4/5)=9.6 months of rent a year from them. So looking at this from a short-term profit angle, will it cost you more than 2.4 months of rent to evict and re-rent the property?

From a longer-term perspective, you say these are good, reliable tenants. Your new tenants may not be so reliable. You need to look at your local market and factor in Covid and decide if new tenants are likely to be more or less reliable than getting 9.6 months of rent out of a year.

TheShepherdsCrown · 11/08/2020 15:48

@Iwouldlikesomecake

I think people don’t understand what a mortgage holiday is.

It means that your interest goes up and all your payments are more when you start paying it again. Not that the OP gets ‘free months’ off her mortgage Hmm

OP I don’t think you’re being unreasonable to expect the rent to be paid at some point as essentially you are being kind and subsidising their housing at present and you’re not obliged to do this ad infinitum or indeed at all.

I’m not a landlord but I am repeating this for the hard of understanding. A mortgage holiday isn’t a freebie. The interest mounts up and you end up paying more in total than you would have done without it.
Hopeful201 · 11/08/2020 15:57

If they are good tenants keep them. We had 2 sets of horrendous tenants, one who caused social disturbances, couldn't pay, trashed the place and the other who kept having baths and falling asleep with the water running. Times are going to be tough, so be careful who you end up with if you kick good tenants out.

Angeldust747 · 11/08/2020 16:03

You're not better off in the long run as you're still being charged interest for the period of the mortgage holiday.
Also, isn't it pretty difficult to evict at the moment, even if the tenants were difficult? I believe it's something like 3 months notice. And there's no guarantee you'd find replacement tenants in more stable kinds of employment in a hurry

Thubten · 11/08/2020 16:04

@DeRigueurMortis - you are just so lovely. I have a LL and he is a total a-hole, unable to see anything further than the end of his own nose. Wish you were my LL. Your tenants are definitely in the minority where you see them as people. You're solid gold

OneForMeToo · 11/08/2020 16:05

You can have the crack heads who live next to me as your next tenants. I heard they are looking since erm they are three months behind on the rent Grin they have also trashed the house, it will need replastering top to bottom new flooring whole new kitchen and bathroom plus half the electrics are fucked now.

Surely a good tenant is worth “losing” a bit of money over rather than getting a bad one who costs you thousands more.

BlueJava · 11/08/2020 16:07

Although you may have "built up some cash" surely the 6 month "holiday" means in the longer term you will pay more interest which won't be cheap. On a side not I think "mortgage holiday" gives such a wrong impression of what it is".

As others have said if they have been good tenants then perhaps keep them - because it's difficult to gauge how future tenants will be and you could get non payers and people who don't look after your place.

TempestHayes · 11/08/2020 16:08

I hope your next tenants shit in the bath

AnneLovesGilbert · 11/08/2020 16:11

You are subbing them, that’s why you feel like that. They’re paying less than the property they’re living in is worth. Are they paying back the discount you’ve given them?

Original poster
pctmmn · 11/08/2020 16:13

One was furloughed the other lost their job.

I've built up cash because I need to if things get rough!! Better that than defaulting on the mortgage.

I am worried about a downward pressure on rents, so wouldn't it be a good idea to kick out the current ones and get some white collar workers with secure jobs on a years contract?

OP posts:
Laaalaaaa · 11/08/2020 16:13

Maybe just give them your house?

Original poster
pctmmn · 11/08/2020 16:14

No they're not paying back the discount, so I feel I've been very generous and now they either need to pay full price or find something else. It's a buisness at the end of the day. I wouldn't expect to go into Tesco and for them to give me a discount

OP posts:
Original poster
pctmmn · 11/08/2020 16:16

@Thewheelsfelloffthebus

Oh and I didn’t include estate agents costs. Since you last let the tenant fee ban came into place as well. So all costs will be on you.
Err no we just pass on the cost! It was a silly rule change.
OP posts:
KaptainKaveman · 11/08/2020 16:17

@pctmmn

One was furloughed the other lost their job.

I've built up cash because I need to if things get rough!! Better that than defaulting on the mortgage.

I am worried about a downward pressure on rents, so wouldn't it be a good idea to kick out the current ones and get some white collar workers with secure jobs on a years contract?

Well you sound as if you have made up your mind. Good luck with squaring your decision with your conscience. Three years of paying your mortgage off for you clearly means nothing in relation to your greed.
BluebellForest836 · 11/08/2020 16:19

Full rent or get them out from September.

There’s plenty of people out there that still have jobs and will pay full rent. Not everyone’s lost jobs.

You have been kind enough as it is.

@Laaalaaaa - what a stupid comment. Why would the OP give them her house? Jesus Christ. Deluded.

Laiste · 11/08/2020 16:19

I wonder how long it will take you to 'kick out' the current ones?

MissBaskinIfYoureNasty · 11/08/2020 16:20

So many rising to the goady op

Laaalaaaa · 11/08/2020 16:22

@BluebellForest836 it’s a well trotted out response related to threads like this. Some idiot answered this in all seriousness a while back - I’m sure someone will back me up on this. As if I really thought that - you’re the deluded one HUN

slothbyday · 11/08/2020 16:24

Likely property to be empty for a month in between tenants, plus you may have legal fees of removing them...

Are the numbers of 1/5 each month down worth the losses from that??

CuriousaboutSamphire · 11/08/2020 16:27

I would give them the other 3 months they are asking for but make it clear that after that the payments will return to normal Nooooooooooo!

Give them an additional 3 months by all means but point out to them that they will then need to pay full rent AND WHAT IS OWING by X date!

As that is what OP will have to do with her mortgage payments. As PP said, some posters don't seem to realise that not only are the holidy payemnts not forgiven but they attract additional interest and add tot he length of the term (in some cases) too!

Good luck with squaring your decision with your conscience. Ah! Yes! Lanldords - the only poeple who provide a service and are expected to feel like total Pariahs for doing so!

FFS!