To evict my tenants

[Landlordbyaccident]

Name change due to personal info possibly given.

I brought my first home in my 20’s and quickly paid off the mortgage on a 2 up, 2 down terrace in Birmingham. Nothing special and it always needed a new kitchen. I invested very little money in this house as I was so unhappy there.

I brought my current home in 2018 and we are paying a manageable mortgage although other outgoings has become a strain in the current financial climate. We owe around £75k on a house worth around £250 (not sure if this is relevant). My previous house has been rented out to a friends friend for around 2 years before this it remained empty.

They are paying £475 per month, other rentals in the area go for around £800. Some months they pay late or come up short. I know they are struggling. They are from a Caribbean island so I am not sure what benefits they are entitled to to help them.

Anyway my husband would like to ‘evict’ them. Ideally I would like them to increase the rent and remain in the house as they are no trouble and really nice people. I am going to be transparent in saying the house could do with some work being carried out but they never complain as I assume it’s because I am in a position of power and they fear I would evict them if I do.

After writing this I am not sure what I am asking? Would I be heartless in evicting them (goes against my core values) or raising their rent ? Should I just continue with the current contract and seek to cut costs in other areas.

what would you do?

To enable voting

DON’T evict them = you are being unreasonable
Evict them = You are NOT being unreasonable

Ideally I would like them to increase the rent and remain in the house as they are no trouble and really nice people

How would that work when they are clearly struggling to pay the rent at its current rate?

Secondly, are the other rentals going for £800 in the area in a decent state of repair? I'm struggling to see how you can justifying raising the recent when you admit yourself the property needs work.

I would give them notice of a rent increase first and see if they will be able to manage it. If not then I would evict them in these circumstances but give them enough notice.

What work does your house need?

Theres a big difference between “it hasn’t been painted for 10 years” and “it needs new windows, is draughty, has shit heating, kitchen and bathroom both falling apart”

Yes they would struggle to increase the rent which would mean I would need to get new tenants.

The house is not damp or anything and it is habitable. It could benefit from a new boiler and kitchen. It is hard to save for both of these due to my own outgoings and their rent does not cover this expenditure.

Other homes in the area differ, some in much better condition and some worse.

Bear in mind with rentals the top rate of rent is for top quality homes. If your house is shabby and needs updating you won't get top rent.
if the house is paid off and the tenants are no trouble do you really need to do anything? The property is accruing value whilst you receive a monthly income from it. Seems like a win win to me. However if you really have to raise the rent put it up by 10% at the most.

Absolutely evict.

Also, you bought your houses, not brought them.

To list all the work:
new kitchen. New cupboards in the utility and new boiler system. The front door is a horrible old shabby pvc one and A composite door would be better.

@FoxInSocksSatOnBlocks

Thanks. I definitely brought it!

Wouldn't it be better to evict and sell the property to help your current financial situation?

What does the tenancy agreement say about increasing the rent? Your rent does sound really cheap though. Give them plenty of notice so they can get somewhere half decent

@welshdaisy

This was the initial plan, however due to a number of reasons I never put it on the market. Now I think it’s better to sell it in the future when my children need help with university and mortgages.

The tenancy agreement states I can increase the rent with notice

Your use if the word “evict” in quotation marks makes me worried. Why do you think it is not a proper eviction?

more alarm bells re requirement for new boiler. What did your gas safe engineer say when you did your gas safety certificate in the past year? Or your Electrician when you had EIPC done?

What does your AST say about rent increase? Serve notice of rent increase, as long as it’s not above local market rates the tenant will find it difficult to challenge(but might). Then Make sure you have complied with all your pre contract obligations before serving s.21 Notice.

But at some point you are going to need to do the work? Can you not release equity from your current home

Then do the work and the increase the rent?

I think yabu to increase rent if work needs doing

Also, you bought your houses, not brought them

Tbf this is fairly common Birmingham and surrounds dialect.

You will make more by selling and investing the proceeds now. Margins are very small now and if there’s not likely to be much capital growth (esp if in poor repair) then seriously sell up - you can set up a tax efficient investment programme

@VanCleefArpels

are you always this suspicious?
The quotation marks was placed there as it was a direct quote from DH and not me!

The Worcestershire boiler is completely legit and installed by a corgi. Its just very old. It’s covered by British Gas home care cover who serve the boiler annually and have carried out a number of repairs. Although it is in full working order and safe they said the home will benefit from a new one.

Thanks for your suggestions.

Can you explain this point please

@SalmonKnicks
Yes possibly

Op that rent you are charging is equivalent to council house rent. Council only replace when they a) can’t get parts to repair boiler b) kitchen repairs/replacement- that’s so funny 😂 c) we decorate ourselves. I say a b c as a guide to let you know you are renting it out very very cheaply. You are a really generous landlord x

@ScottBakula

what point?

Sorry should of quoted post .
Can you explain this point please

I think you should invest money in a hard hat for asking that question on AIBU!

As long as you are meeting legal obligations and the property has a satisfactory EPC then the only reason to charge a lower than market rent is to help out your current tenants.

I assume that the boiler works safely and the front door and kitchen cupboards do their job? If so whilst it might be a good thing to improve them at some point your current tenants would probably prefer them left as they are in return for a lower rent.