To come down like a tonne of bricks

[thisisasurvivor]

Hello all

So I rent a house out

Semi reliable tenants

Xmas rent late by ten days
All they could pay was half
So I said fine
Pay half no probs

Now - rent late
So they can only pay half this month

I have been very fair
Rent is 200 less than market value as I don't want to put any pressure on them

Say nothing and hope it won't happen again?

They have been there 3 years so only some issues since dec 22

Plus everyone is struggling financially now :(

I'm really glad you posted this

In their shoes I would be petrified

I will do nothing for now

Hopefully they pay up the extra soon

Thanks all

How did they approach you about this situation? Were they honest and upfront about not being able to afford rent, or did they just avoid the payment until you queried it with them?
If you’ve had a previously good relationship with these tenants, I’d approach them politely but firmly and outline that you need the full payment to pay off the mortgage. Highlight that the property is already been rented out under market value, and that Christmas was a one-off that you simply cannot offer again.
See what they have to say about their circumstances. I wouldn’t apply a late fee if they’re already genuinely struggling financially, but I would give them seven days to settle the full rent before you consider your options.

So you’re not an accidental landlady then, you made a calculated decision to become one, whether or not you think you’re profiting from having the tenants there. There was no accident about it.

Do you have the legalities all above board? Gas and electric certs, deposit held in a scheme, pay for any repairs needed etc?

If you used a Letting Agent to find you a tenant, then go back to them now, and ask their advice. You will need to pay them to manage it, but they will go after the rent and liase with the tenant.

The tenant is taking the piss if you are already letting them have it cheap. That was your first mistake.

Make sure that everything regarding the rental has been done properly, EPC rating, carbon monoxide/fire detectors, Deposit has been protected etc. The LA can help with this.

Then if the LA doesn't get anywhere with them, you can evict them. This could take some time if they decide not to leave.

It all depends on the type of person that they are. I know of one rental where they are still behind from covid but are paying the arrears off regularly and the LL is happy with that.

Another property, the LL let them not pay rent, let them pay it late etc. The tenants have since gone, and left the property in a terrible state and it has cost thousands to put it right again. They never appreciated the help.

The LA fees will be worth it if they can help you to sort all of this out. They can't enforce payment any more than you can, but it is making it official and putting a neutral party in place to deal with it all.

Once they are out then either sell it or increase the rent and get some decent tenants in.

Ask them what the issue is? Have they lost their job? Unexpected bill? Waiting on overtime payments or something? Seems odd if previously good tenants apart from Xmas.

I don't think it's the OP that's scrounging.
And I rent.

FFS! What a load of nonsense. (I say this as someone who rents their home, not in the UK though, so attitudes to both tenants and landlords are very different).

There's an argument for making provisions for empty periods, but tenants need to pay their rent in fulfilment of their side of the contract, and what's going on here sounds suspiciously as if the tenants have OP down as a soft touch.

💕💕💕

Changed jobs at Xmas :/

What are they like as people? Is it a fair description to say they hey are talking the mick? If they were paying in full and on time for the first two years is it possible that this is genuine and they are struggling?

I’m just wondering because there are a lot of naturally pro-landlord landlords on MN who are pushing you straight down the road of eviction.

Im not suggesting to stand for it either but wouldn’t it be fair (as you seem to be a genuine person who cares about others) to have a conversation with them and find out if they will be able to pay you back and keep up to date in the future. You could direct them to citizens advice for help with budgeting and reorganising debts.

They unfortunately if they can’t pay they can’t pay and you will of course have to move them on but at least you will have peace of mind knowing you gave them one more opportunity to get back on track.

Course. I have

Are you for real?

They have a lovely house at around 300 less than houses in similar condition same size on that street

Get a grip

To be fair they were perfect until dec 22

So genuine hard situation. For them

Oh, I'm not saying you should go straight to eviction, but repeatedly letting them off their contractual obligations can't be the answer. (It won't be in their long-term interests either, if/when you eventually get fed up and 'suddenly' (from their perspective) want them out).

Get a grip for pointing out you’re not an accidental landlady and asking if you’ve got the legalities above board because you don’t seem to have a clue about any of this? Think it’s you that needs to get a grip, and maybe learn how to actually be a landlady before you make an even bigger tit of yourself 🙄

This. I 100% feel for anyone in a dire financial position, but you can't take on their financial situation, and if you continue to allow this, they will view it as an easy option to not pay.

Oh FFS why should op be subsiding someone else? What do you think would happen if there were no private rentals?

I have had this happen before. When I showed kindness like you have I was taken for a mug and they kept trying it on.

You need to say that your mortgage has gone up and you can't afford to pay it. You therefore need them to pay what they owe in full. Going forward they need to pay on the day agreed. Then if it ever even a day late you need to be on them immediately. Don't let anything slip by unnoticed.

I think some tenants really believe that landlords don't actually need the rent to pay the bills.

I just read your update. You are charging them £600 when it could be £1100

£7260 mortgage/insurance costs - rental income £7200. So you are already out of pocket. What about the cost of repairs, boiler servicing, etc?

you own it jointly with your sister, so potentially legally you each get 50% of the rental income unless you have change the % share. Depending on your other income you could have to pay tax on a lot of the net income (after any relevant expenses and credit for mortgage interest IF you meet that criteria.

The rent that you receive should cover all maintenance, tax and any other related costs, maybe accountancy fees if you have to do a tax return.

As per my comment above, you need to sell or raise the rent.

You may be an "accidental landlord", but you should realise that it shouldn't be costing you money.

@Jizzle grow up. Theres always posters who come on these threads bashing landlords. But you never bring any alternative to the table.

As you can see, OP, MN is full of people who think there's nothing wrong with not paying your rent. Landlords on here are scum.

Whatever happens with yours, you won't get them out. The law is heavily weighted in favour of the scum that thinks it's fine to effectively steal other people's money in this way. My elderly relative died before the cunts who had ruined her final years even agreed to move out of her property, after not paying a full month rent ever and not paying at all in the 6 months before she died.

But sure, listen to the similar minded people on here who think you're the bad guy.

It's worth having a conversation with your tenants to see if they are claiming all the benefits they are entitled to. They sound like they are in a very vulnerable position if they can only afford 50% of the rent. If you were to evict them, they would be effectively priced out of their local area unless they found another below-market rate rental.

If I told my mortgage company I couldn't only pay half this month, I wouldn't get very far. I'm not sure why people who rent should feel that is an option either. Most people who rent property also have mortgages to cover and if you are saying that the rent you charge only just covers the mortgage on the property then what if you can't afford to then pay your mortgage as a result? You were understanding once, but I think this is unacceptable now.

I was going to say the same. Surely you are making a loss because the income and outgoings don't include the income tax you should be paying. You do know even if employed you have to file a tac return if you rent property out.

Look at eviction for rent arrears and s21 notices.

This is sustainable OP you aren't covering your basic outgoings on this property.

You are giving these people hundreds of pounds.

I think you either need to had the property over to a letting agent to manage for you or sell it.

Being a landlord is quite complex and not a job for everyone but it's a job that needs to be properly for everyone's sakes including the tenants.

OP you won't get much in the way of good advice on here. You would be better getting some advice on either landlordzone forums or the nrla.