To think about kicking out (good) tenants?

[pctmmn]

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.

@Laaalaaaa 😂😂😂😂

1/5. Wow

@BluebellForest836

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.

Ah thank you! I do feel like 6 months with a large reduction is enough leway. Then if they haven't improved their situation I think it's justified to find someone better.

Why on earth would I give them my house? Talk about stupid..

What is the legal situation? It was my understanding that you can’t currently evict (for any reason) but if you are 3 months from the end of the contract, are you able to serve a Section 21? Not that, as per my earlier post, I think you should.

I think the ‘give them your house’ comment was heavy on the irony (and in support of you).

FFS I was hardly being serious. You know when people trot out the cancel the cheque line and all that other nonsense well there was a post not so long ago from a landlord and that was a serious suggestion. A lot of similar threads it’s always been brought back as an answer. Aye of course I think you should give your house away 🙄

Honestly, in this uncertain environment, I’d hang onto them. The pandemic could suddenly resurgence and even new tenants could suddenly find themselves in financial difficulties.

I agree that you should set a definite date for a return to full rent so that everything’s clear. I’m a softie so would probably extend it through December, but if that’s too long, perhaps agree to the second three-month extension ( to October?)

*resurge

The fact that anyone took the "give them your house" post to be anything but heavily ironic is the best thing about this thread.

I don't think you should kick good tenants out. You never know what will happen with the next ones, or how long the house will be empty for.

@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

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.

The op says her payments won't change.

I think the renters should be given a chance to pay the full amount before you consider asking them to leave.

I also think some of the profiteering landlords might have to reconsider how much they're charging. Not saying the op is profiteering but some are and it isn't sustainable in this climate.

What I think you deserve is to ask for more detail on their income as you would do if there were new tenants.

Ultimately, they should be furlough, entitled to the self employed grant or UC, so it would be fair to ask if they've claimed anything and understand how they are short.

They will either be taking the piss or they will be genuinely struggling. If the latter, they should be willing to be transparent about their financial.losituon if it means you allowing them to remain in the property.

You’ve been kind enough OP, irregardless if it does not affect your bottom line they need to pay the amount you’ve set.

If not they are look for house elsewhere.

I’ve given my tenants a complete rent holiday, no expectation of repayment, cos he’s lost his job. Rent holiday still ongoing. I’m a student and could really do with the cash. But we’re lucky that my husband has a secure job so we are happy to spread the load of this horrible pandemic.

Unless you need the money to make ends meet, give your tenants a break

@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?

Why do you think you could immediately get someone in on a years contract at the same rent that is currently being paid? Rental indices are notoriously rubbish because they only track asking (which tend to be higher), not agreed rents, but they are already showing year on year falls of 3% in Greater London, 2% in South East, basically flat in the East & in Wales... That's only going to accelerate as more people lose jobs going into the autumn. If you kick these tenants out, you could easily end up with a long void period and have to accept a lower rent anyway when you re-let.

Re ''Good tenants''...A friend of DS has a few properties that he rents out....He keeps the rents low for ''good'' tenants, as would far rather have good, 'safe' tenants in his properties than ones who damage the place and don't pay.
It doesn't seen 'easy' to get tenants at the present time..and 'good' ones are worth looking after.

Remember that at the moment if they don't wish to leave it's going to take you 6 months at the very least to get them out. If thecide not to pay at all during this time then that's 6 months without any rental income.

they decide

@pctmmn - you want to evict tenants who are good, in the hopes of getting better ones? That just sounds like madness to me.

What happens if your ‘white collar’ tenants, with their good jobs turn out to be tenants from hell and stop paying the rent? Their class and employment status are no guarantee of them being good tenants.

You could end up with worse tenants, non-paying tenants, having to take expensive and lengthy action to evict them (when the moratorium on evictions ends), losing money hand over fist, and wishing you’d kept the good tenants you currently have.

Could the tenants who lost jobs get 'Housing benefit?'...I have no idea how it works, but in the past heard of people applying for it?

Also beware the 'lovely well dressed couples' with impeccable refs who want a short term let.... {Daily Heil article}

www.dailymail.co.uk/news/article-2140955/Respectable-tenants-turned-house-cannabis-farm-Couple-face-20-000-return-house-state.html

I would appreciate if OP could tell me which white collar job is secure please.
I need another job as my previously 'secure' one turned out not to be as secure as I thought.

I do feel like 6 months with a large reduction is enough leeway. Then if they haven't improved their situation I think it's justified to find someone better

You're quite right, but unfortunately you've chosen the wrong forum to ask about this. On MN LLs are often considered the devil incarnate so you'd be better off on Landlord Zone or similar

Maybe supplement your rental income with your freelance journalist wages?

@Thubten

Thank you for your kind words and I'm truly sorry that your LL isn't more compassionate.

Upshot is that it is a "business" and my aim has always been to make money from my rental - I make no bones about it.

That doesn't mean however that I feel the need to exploit other people's vulnerability in such unprecedented circumstances.

I also treat it as a partnership in the sense that my good tenants in turn deserve a good LL and I ensure the property is always very well maintained, any issues fixed swiftly (and professionally rather than botched) and they in turn treat the property well and pay on time.

No one could have anticipated the situation we are in and that my tenants would lose their income so quickly.

As I said they have been great for 2 years and in recent Covid times up front about their circumstances and busted a gut to find alternative work.

I don't see it as "subsidising" them at all.

I'm protecting my investment by keeping it being lived in by people who care about the place where they live.

You have given them a break- 6 months of discounted rent. Your mortgage holiday won’t mean anything is discounted - you’ll just pay more, later.

Unless there is a cast iron guarantee they can start paying in full then it’s entirely reasonably to want other tenants.

Of course, you’ll get a few people on here who are just bitter and ludicrous about landlords full stop. They’ll be the same ones who tell tenants not to cooperate, to refuse to move until the bailiffs are actually kicking them out blah blah blah which is really fucking unhelpful to tenants because it takes no account that they’ll end up with CCJs against them and not a cat in hells chance of renting somewhere decent again

It’s really tough times but hopefully your tenants will find somewhere cheaper they can afford , or, if they aren’t actually working right now, although that’s shit for them at least they aren’t tied to this location so presumably could move to a cheaper area