Landlady query - what would you do?

Rubyspearl

A few questions if I may
I have rented out a property since 2005 the property is or was a new build
I was young when I took out the buy to let mortgage and since I have had the same tenants for the duration have never really developed my knowledge. I have only just realised that I need to put my tenants deposit into protection.
I consider myself to have been a good landlady, have immediately attended to all repairs and have developed a good relationship with my tenant
Throughout the years my tenant has had various people living with him and at each stage has renewed the agreement with them included.
And has missed about one payment per year which we have written off.
Recently our tenant has had some financial difficulty whichnwe are unsure as to the details and have no right to know. He has missed a full months rent in the past six months and each month is 100 - 200 short, but makes every effort to pay what he can. I think he is on hb now as well.
We have wanted to sell the property for a few years and we always said when he moved out we would sell but we would never uproot him as this is his home.
This month we have tried to contact him, which has always been a bit of a problem, to no success and we have messages him to return our call, is it ok to ask him to do this?
As I am on mat leave money is short and supplementing the mortgage payments is difficult. I have thought about proposing a deal that if we sell we would give him about 15 percent of the profit we make which is likely to total 3500 - fair? We have always charged the same rent which is about 200 less than similar properties as the tenant has admitted when he looked around to rent elsewhere.
We are very fond of him and do not wish him any problems and are genuinely concerned for his situation. But due to our own situation we need to do something. I'm half tempted to rent him a room when we move house as we will have a spare room.
What would you as a landlord do?
Cheers

g_attrill

As long as the deposit is protected don't worry about that.

As for the tenant - I think you have been far too nice. Renting a property is a business transaction - they get the right to live in your property for paying you an amount of money every month. You have a mortgage to pay and you are effectively subsiding his life from your own pocket for no benefit. If he was a relative or a friend I could understand it, but it sounds like you are cutting them a bit too much slack.

Also I can't believe you are considering giving him some of the profits considering they are already in arrears!

If you want to be nice the best thing you can do is give him plenty of notice to get something sorted, and perhaps agree that he can leave at any notice and not owe the remainder. If he is capable of work, ask him to redecorate or some simple DIY to pay off the arrears.

The_Blue_Hatter

If he agrees, could you put the house up for sale while he is living there and ask him to pay half the rate he normally pays. This way you get your house sold and while it is going through you wont have a couple of months of voids. It also helps him in the short term of having less to pay each month.

I would not dream of giving him any of the profit at all, instead... ...I could do with a holiday!

Incyder

Rubyspearl wrote: »

I have thought about proposing a deal that if we sell we would give him about 15 percent of the profit we make which is likely to total 3500 - fair?

You must be mad or joking.

Jowo_2

I really don't understand why you feel the need to provide a cash gift to an unreliable tenant. You have provided him with a roof over his head and that is his reward.

Do not concern yourself with the tenant's own problems. You are not his friend or social worker, your only role is to provide him with accommodation and meet your landlord obligations. Yes, its his home but its your property. There is nothing to feel guilty about. He has not met his obligations as a tenant by paying you the correct rent when it is due, even though you rent it for less than the market rate, even though he has lodgers subsidising his expense. You even virtually admit that you are subsidising him and his arrears are causing you hardship.

Serve the correct notice and then put the property up for sale when he moves out. Any equity you get, you can invest in your child's future.

I would never rent out a room in my own place who wasn't a sorted individual - who wasn't working and couldn't manage their financial affairs. I wouldn't think it's an attractive proposition for him to live in the same property as a small child and I expect he'd prefer the privacy of his own place.

Does he pay monthly and owe the equivalent of 2 months rent? When does the fixed term of this contract end?

MegaMiniMouse

Rubyspearl wrote: »

Recently our tenant has had some financial difficulty whichnwe are unsure as to the details and have no right to know

With respect, I would suggest that if you are seriously keen to help your tenant way beyond your legal obligations, then you are extremely entitled to know about his financial situation - surely, you wouldn't even help out a relative without fully understanding the situation (would you?)

Is there just the tiniest possibility that your tenant is taking undue advantage of your sweet nature?

MMM

Incyder

MegaMiniMouse wrote: »

Is there just the tiniest possibility that your tenant is taking undue advantage of your sweet nature?

Is there the tiniest possibility that the tenant is the father of your new baby ? :cool:

msgnomey

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

cheeky

Rubyspearl

Hahaha- I'll tell my better half that one.
It's really difficult to address this given the fact that we are friendly - we were witnesses to his wedding, were initially neighbours and have seen his little un grow up. We know that once we say or do something there is no way back. We never realised that we would become so friendly which is our own stupid fault. But not sure what exactly to do.
He has just finished the 6 month tenancy - which he is always keen to update rather than have a running tenancy, so we expect him to ask for a new 6 month tenancy soon and at that point we feel we should say something.
We were thinking the money might help him move forwards with his life and as he has effectively until recently paid the mortgage with his rent we feel he should have a stake in any proceeds.
I think mad it is as I'm definitely not joking. As we are financial ok (as far as anyone could know in the current climate) when the rent is paid in full it seems a little harsh to expect him to leave with nothing after all these years.
We have both been soft but what procedure should we follow now?
I'm off to get the online paternity test that my other half now insists on
Cheers

MegaMiniMouse

Rubyspearl wrote: »

We have both been soft but what procedure should we follow now?

Ummm, I give up! What's your answer? You are like the government, and your tenant is like the banks

You gave an inch, and he has taken a mile

Uncharted Waters!

MMM

ttoli

Incyder wrote: »

You must be mad or joking.

As a landlord myself, Id have to agree with this, In the past Ive been Mr Nice, the tenants have seen this as a weakness and exploited it, missing rent day, making me chase them for it,Has taken Me a while to toughen up, they are getting a v good deal from it and wont find the same anywhere near what I'm charging.