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Original poster

Tenant trying to renegotiate rent prior to end of tenancy - what would you do?

41 replies

maggiethecat · 20/12/2011 22:40

I knew this tenant would be a headache! They started in August and they can now give 2 months notice to exercise the break in February. So they have contacted me to say that they have seen similar properties in the area for about £300 per month cheaper. I know they can get properties for what the price but not a comparable property.

I am inclined to say to go take a hike but I don't want to be rash. What would you do?

OP posts:
OldLadyKnowsSantaClaus · 20/12/2011 22:41

Start advertising for new tenants.

OldLadyKnowsSantaClaus · 20/12/2011 22:41

Well, wait till they hand their notice in.

StuckInTheFensAwayFromHome · 20/12/2011 22:43

agree... look for new tenants... if they don't appreciate the difference between the properties then are they taking reasonable care in your property?

belledechocchipcookie · 20/12/2011 22:47

Personally, I'd pay more for a landlord who did repairs when needed and for a better standard of house. A new kitchen would be fab! Wink If they want to move somewhere cheaper then you can't stop them. Cheap doesn't always mean better though.

SquishyCinnamonSwirls · 20/12/2011 22:47

Tell them the truth, the properties they are quoting to you are not of a comparable nature and a rent reduction of that value is just not possible. If they feel that they have to move then you will understand and require their notice asap.

Original poster
maggiethecat · 20/12/2011 22:51

That was my instinctive reaction. It is clear that they are not looking for a £300 reduction but want to pay less rent. On principle I think it is out of order to be in a one year fixed rent agreement and then try to renegotiate rent. If there are cheaper properties out there then they should go get one.

Of course there is the more cautious side of me that says that perhaps I should not be too hasty. They are taking care from what's been seen but it's clear that they are very calculating people.

OP posts:
baubleybobbityhat · 20/12/2011 22:54

Please let them go! Take the hit (if you must) but please call their bluff and tell them they are welcome to leave. Then re-advertise your property at a tiny bit cheaper (£50/month?) rent.

reallytired · 20/12/2011 22:54

Wish them the best of luck in the future and advertise for a new tenant.

I suppose a lot depends on how confident you are that you can let your property quickly and if you can cope with a void period.

QuintessentiallyShallow · 20/12/2011 22:55

I think i would call their bluff and say something along the lines of
"Dear John, I understand that you are currently researching the property market with a view to move to a cheaper property. Just to remind you that you have two months notice period, and that you will be required to let people look at the flat in your final months of your lease. "

Or something like that.

Original poster
maggiethecat · 20/12/2011 22:55

Squishy, I've just emailed them pretty much in those terms but did offer £100 off and a new tenancy agreement. That way, I get at least a year's rental in total (even if they exercise a break under the new agreement) and plan accordingly.

OP posts:
QuintessentiallyShallow · 20/12/2011 22:57

oh no. I have done that in the past. And got my property vandalizes. They will neither respect you nor your property after this....

baubleybobbityhat · 20/12/2011 22:58

So why did you ask for the thoughts/views of Mumsnetters then op? Xmas Confused

Original poster
maggiethecat · 20/12/2011 23:01

and can plan accordingly

We are confident in the marketability of the property. I would only drop rent to save on hassle factor. But I have a bad feeling about doing so - it does feel like allowing piss taking.

OP posts:
Original poster
maggiethecat · 20/12/2011 23:07

Baubley, I think it's really at the stage of feeling each other out but nothing is certain. I could sleep on it and decide that I will tell them to take a hike - intuitively it feels like the thing to do and this view seems supported here.

OP posts:
Original poster
maggiethecat · 20/12/2011 23:10

Quintessential, I don't think they will vandalise property but as I say, they are very calculating.

Should have seen the writing on the wall when the husband was of the view that he should be able to deduct the cost of postage stamps from rent if he ever had to post anything to me.

OP posts:
OldLadyKnowsSantaClaus · 20/12/2011 23:15

Oh, shit, I really hope they give notice!

AlpinePony · 21/12/2011 06:41

How many months void would it be before you lost any "profit" you'd make keeping the rent at its current level? What would your advertising fees be?

Original poster
maggiethecat · 21/12/2011 08:42

Probabaly 2 months. Advertising about £70.

OP posts:
AlpinePony · 21/12/2011 08:45

OK, well realistically you've got 1 month's void off the bat because it's unlikely you can get them to move out at the end of the month and a new person in on the first. So essentially it's a gamble isn't it?

Will the new tenants also pay this elevated price?

Is it really "market value"? Have you asked the tenant to provide you with examples of similar properties at the same going rate?

Original poster
maggiethecat · 21/12/2011 09:53

Don't think it's elevated - had it valued by 2 estate agents. Had a search of the net and there is not much out there and although there are cheaper properties they are not comparables eg 3 beds instead of 4 etc.

I think they will be going because they won't get the reduction they are looking for.

OP posts:
alabamawurley · 21/12/2011 11:26

If you're absolutely sure its worth what you're charging then let them go. To be honest, there is too little information here for anyone to give you any meaningful advise. Why did you take them on if you "knew they would be a headache"? Why did you use a 12 month contract with a 6 month break clause? What is the rental market like in your area? Are many properties hanging round for a while before being let? etc. etc.

My suspicion is that you had some trouble letting it out initially - why else would you already have offered a reduction to 'problem' tenants (and devil's advocate - they only took it because there was nothing of better value available at the time) - but as I said there is not enough information to say for sure. Again being totally honest, you also need to ask whether you are cut out to be a landlord if you feel the need to ask MNers for advise on what is essentially a business decision.

HollyGhost · 21/12/2011 13:22

alabamawurley gives good advice

amateur landlords like you are a nightmare for decent tenants - you should have a professional, business relationship but instead you are taking every aspect of the negotiation personally.

You can either agree to the reduction and keep tenants who you know to be taking care of the place and paying their rent

OR

you can take a gamble on having an empty house, and potentially having real problem tenants - the sort who trash the property, don't pay rent and take many months to evict

only you have enough info on which to base that decision

londonlottie · 21/12/2011 13:51

Agree with alabama - was it hard to rent out in the first place? I am shocked you said yes to a reduction - I would NEVER have agreed to this, part way through a tenancy agreement! Prices don't change that much in 6 months and if they were happy to take the property on at the advertised price 6 months ago, then tough shit!

As far as I understand it, rental prices in most areas are increasing, not dropping.

londonlottie · 21/12/2011 13:52

Just to add, although thinking about the cost of a void is relevant, it's not necessarily the most important factor. I would be concerned that you 'giving in' to them on this occasion will have damaged the respect they have for you (and your property) going forwards.

HollyGhost · 21/12/2011 14:41

I think the reverse is true londonlottie having a good deal is an incentive to stay, and to look after the property

why would a business negotiation, carried out in a professional manner lead to a loss of respect? Digging heels in, purely to spite the tenants however will lead to a loss of respect, and I think that is what the OP is doing.