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?

Yes, @Technonan , it’s a Catch-22 situation. The OP doesn’t have the cash to replace the boiler (she has enough to service the old one). On the current low rent, she could save up for a new boiler plus installation, but it’ll take a while.

Then there’s the replacement door and the long term goal of the new kitchen.

I agree that she could save up for all these things and possibly lower their energy bills, but it’s all going to take time and there’s no guarantee that the tenants could afford increased rent if they often pay late already.

@QuitMoaning if it's working for you then it makes sense to carry on until it doesn't. That could happen or it might not. If people call you scum, ignore them. I wouldn't do that but neither would I say you are doing your tenants a favour. You are providing a service and charging for it at a rate that is acceptable to you that also happens to be acceptable to them.

But it is not working for other people, including the OP. They should would be wise to quit and find some other way of making a living.

Why do private landlords do it then? Goodness of their cold little hearts? Why?

Not the same reason for everyone.

Some do it as an alternative to investing in a pension. Some buy a house to turn into an HMO while their DC is at university so they know that the DC will have a decent place to live but the parents get something out of it as well. Some inherit a property and, having seen lots of makeover shows, think it will be easy to get an additional income out of it. Some couples get together later in life, both with their own properties, and decide to live in one and let the other.

In my case, I had a mid-life career change which was going to provide accommodation until I retired, but I would then need to house myself. It made sense to let a house and keep a place in the housing market until I needed it, rather then sell up, decouple my capital from the housing market, and potentially not be in a position to buy a place when I needed it.

And some do it purely as a business, owning multiple properties.

Some couples get together later in life, both with their own properties, and decide to live in one and let the other.

My last landlord before buying our own house was this. He was great. We stayed for four years with minimal rent increase which I think was pushed by the agent instead of him.

Including student rents, I must have rented from about 8 different landlords/ladies. None of them were "scum".