Long term tenant can no longer afford rent (Scotland)

ReadySteadyPop

GDB2222 said:

I’m not sure it’s a good idea to reduce the rent. I’d just tell her you won’t be chasing the arrears for the time being. 

That could lead to a big build up of arrears though?

Bigphil1474

Are you saying the property hasn't gone up in value as well so you're making a loss overall, or are you not including the increase in property value over that period? Appreciate it's better if the rent covers your monthly costs but if you have a mortgage which is going down and a house which is going up in value as well as covering most of your costs, you are probably doing okay. A good tenant with a shortfall for a few months then back on their feet must be better than risking a new tenant who may be a mare. (Accepting that they are unfortunately probably underpaying anyway).

Herzlos

Whilst it sounds harsh, you may find that she'll get more help if you remain firm with her. She probably won't get any discretionary council money if you lower the rent and she isn't in arrears. She won't be a priority for council accomodation if you don't follow the legal process to evict her.

Of course you can explain that to her in person, and remain firm on paper.

I'd let her build up some arrears in the short term - presumably she'll be able to find another job, or you'll have grounds to start the eviction process. The net result is the same to you if she pays you £400 of a £750 rent than if you drop the rent to £400.