Tenant Sadly Deceased

BaileySJ

AdrianC wrote: »

So that's £15/mo top-line loss, before any costs.

I have to say that it doesn't seem like the most sensible of business plans you have...

Thank you, very helpful. When originally purchased the rent easily covered the mortgage and left a surplus to save towards repairs etc. Market factors over the years have reduced the rental yield. I was in a position on several occasions to put the rent up (and advised to do so by the agency) but the tenant would have had to pay personally as her allowance would not have increased. I decided against this as I felt I could afford it more than her.

Not looking for sympathy - totally my own decision, and something I felt more comfortable doing. Plus at some point the mortgage will be paid off and it will be a viable asset.

Crashy_Time

BaileySJ wrote: »

Thank you, very helpful. When originally purchased the rent easily covered the mortgage and left a surplus to save towards repairs etc. Market factors over the years have reduced the rental yield. I was in a position on several occasions to put the rent up (and advised to do so by the agency) but the tenant would have had to pay personally as her allowance would not have increased. I decided against this as I felt I could afford it more than her.

Not looking for sympathy - totally my own decision, and something I felt more comfortable doing. Plus at some point the mortgage will be paid off and it will be a viable asset.

Lot of contradictions there, doesn`t make sense to me. It would be better, and less stress to put 350 p.m into a global equities tracker fund IMO.

BaileySJ

Crashy_Time wrote: »

Lot of contradictions there, doesn`t make sense to me. It would be better, and less stress to put 350 p.m into a global equities tracker fund IMO.

You are quite right - but the value has dipped since purchase and I would rather hang on until the market improves (by which time the mortgage will also be less).

getmore4less

BaileySJ wrote: »

You are quite right - but the value has dipped since purchase and I would rather hang on until the market improves (by which time the mortgage will also be less).

With repayment mortgage you only count the interest in the profitability of the trading operation of the rental business.

Any capital is equity creating/savings

Crashy_Time

getmore4less wrote: »

With repayment mortgage you only count the interest in the profitability of the trading operation of the rental business.

Any capital is equity creating/savings

Capital/savings are best stored in a more liquid asset though.

cloo

Crashy_Time wrote: »

I take it you didn`t know the tenant well, as money seems to be your main concern here?

Why should OP know their tenant well? They've made it clear they don't want to harrass the family, as is absolutely right, but they afre also entitled to have some concern about the costs to themselves as a result as they have their household's interests to think of too.

Guest101

cloo wrote: »

Why should OP know their tenant well? They've made it clear they don't want to harrass the family, as is absolutely right, but they afre also entitled to have some concern about the costs to themselves as a result as they have their household's interests to think of too.

Well sort of.


It's a business and these things happen in business. So really it's a risk that wasn't accounted for and given the age of the tenant quite short-sighted.

Bonniepurple

Guest101 wrote: »

Well sort of.


It's a business and these things happen in business. So really it's a risk that wasn't accounted for and given the age of the tenant quite short-sighted.

I can't see any reference as to the age. Just because someone is 80 doesn't mean they are likely to drop dead- I knew a 41 year old who died very unexpectedly of natural causes!

AdrianC

Bonniepurple wrote: »

I can't see any reference as to the age. Just because someone is 80 doesn't mean they are likely to drop dead- I knew a 41 year old who died very unexpectedly of natural causes!

No, all we know is that the tenant had a daughter who - presumably - does not live with them. The daughter could be a child living with the father or another relative, for all we know.

Guest101

Bonniepurple wrote: »

I can't see any reference as to the age. Just because someone is 80 doesn't mean they are likely to drop dead- I knew a 41 year old who died very unexpectedly of natural causes!

Well that may be the case, but the avg lifespan in the UK is around 80. So yes you would expect an 80 yr old to be closer to death's door than a 41 year old.


Anyway I was simply saying that the tenant you choose had varying business related expenses.


Rent to a group of students - expect a mess
Rent to a young family expect some damage
Rent to pet owners expect to fumigate


Etc.