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Gillybean
Posts: 290 Forumite
We have a house that we rent out. We purchased it with the tenant in situ, he’s been renting the house for over a decade and in the 5 years we have owned the property there’s been no issues in either side at all.
He came to see us a few months back. Said he was due to come into a considerable amount of money and would we be ok with him doing some decorating and possibly a new kitchen and bathroom.
So it sounds like he wants to spend a fair chunk of his own money on a property owned by us. He did suggest we might like to contribute, but nothing has been discussed since.
I’m just concerned as to how we handle this from a legal perspective for both us and our tenant. In theory he could want to spend tens of thousands on a property he doesn’t own. If anyone has any advice or experience of a situation like this I’d be grateful for any input.
My guess is we’d need to see a solicitor and get some kind of agreement drawn up?
He came to see us a few months back. Said he was due to come into a considerable amount of money and would we be ok with him doing some decorating and possibly a new kitchen and bathroom.
So it sounds like he wants to spend a fair chunk of his own money on a property owned by us. He did suggest we might like to contribute, but nothing has been discussed since.
I’m just concerned as to how we handle this from a legal perspective for both us and our tenant. In theory he could want to spend tens of thousands on a property he doesn’t own. If anyone has any advice or experience of a situation like this I’d be grateful for any input.
My guess is we’d need to see a solicitor and get some kind of agreement drawn up?
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Comments
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The tenant is mad. You are correct in that he could spend a lot of money on a property he doesn't have a lot of security to remain in. There isn't anything you have to do legally and you can't stop the tenant from spending his own money doing up the property but it might be worth pointing out then he's only a Section 21 away from leaving the property so he'd be better off putting the money away for a rainy day.0
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I think he is mad too! I know he has a huge amount of money coming to him, so when he came to see us I did wonder if he was going to ask if he could buy it from us given he has been there for around 15 years and is happy there. But he said he absolutely does not want to buy it.0
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Is he planning to buy new appliances? If so, he may want to take them with him when he leaves and would be entitled to do so. Pixie5740 is right - it's bizarre he wants to spend money decorating a house he doesn't own. There are two possible reasons (and I'm only speculating) - 1: He has no plans to move out anytime soon and wants to upgrade his living space. You will need to consider whether you have any plans for the house - if you are happy with him being there long term then it's understandable he might want to decorate. Sounds like he really feels at home. 2: This is slightly more off-piste but if he spends money decorating he may try to make a claim in proprietary estoppel down the line. He wouldn't be successful as you have a lease contract (I'm assuming) so that there is no mistaken belief as to his interest in the land.
Be careful about his offer that you contribute. Is he expecting a reduction in rent if he spends money on the house? Is he going to be doing it himself (exposing you to possible DIY problems down the line) or getting a contractor?
You need something in writing and you need a clear agreement between the two of you as to what he wants to do and how he wants to do it. Perhaps if it is time to spruce up the house a bit (if nothing has been done for 10 years) then you could work together to arrange a compromise that suits both of you.0 -
As he clearly considers it his home its not unreasonable to want to modernise it or alter it to suit although it is unusual to spend large amounts of money for something he might not benefit from. What are your plans regarding him and the property? If he expects to stay another 15 years spending money it isn't particularly unreasonable.0
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What you guys have said is what I keep coming back to also. He has lived there 15 years, 5 with us as tenants. He knows we bought the house as a long term investment and have no intention of selling. It is absolutely his home, he just does notown it.
So I guess I can kind of understand why he wants to spend some money on it now he has the option to. He is single, middle aged, has no dependants. So why not? I do think we may well contribute something towards the kitchen if he does it as its very old. We would have replaced it ourselves when we bought the house but he said he was fine with it and did not want the disruption so we respected that.0 -
We purchased it with the tenant in situ, he's been renting the house for over a decade and in the 5 years we have owned the propertyhe has been there for around 15 years and is happy there. But he said he absolutely does not want to buy it.
What type of tenancy is it, is there proof it's that tenancy type? What was the history of the tenant or his family occupying the property prior to the 15 years? Why was the property sold with the tenant in situ?
It's common for a tenant on an assured shorthold tenancy to be evicted before a property is sold to open it up to the full market and get best price.
OTOH it's common for tenants with secure tenancies to remain when a property is sold.
Put that along side the tenant wanted to spend his own money on the property and I have to ask exactly what security of tenure does he have and what proofs to the contrary or otherwise do you have?0 -
if its your long term investment and you have no desire to sell then I believe you should be the ones who fund the redecoration of the property and the upgrades.
I wonder if your tenant is politely asking for this to be done in a roundabout way,afterall it sounds as if nothing may have been done to the property in around 15 years?
The fact that he is a longterm tenant is good but there is absolutely no need for him to spend his own money on significantly making improvements to the property,thats what he pays rent for.
By all means ask his input perhaps into what type of kitchen or bathroom he wants but ultimately the decision is yours and the funding for the project should come 100% from you.
If you go down the lines of accepting money from him you open up a whole can of worms,what if the work is not done well,what if you find his choice of fittings is not to your taste/desire?
This property is your business and his home,work with him to give him what he wants but don't accept his money in any way to do the renovations.
Although that does then beg the question of is he paying market value for the property and in doing upgrades would you be pricing him out of it as a rental and pricing him out of "his home"
Maybe his thinking is that if he funds the upgrade you don't put the rent up.
Lots to think about here,but I keep coming back to the costs needing to be Bourne by you and not himin S 38 T 2 F 50
out S 36 T 9 F 24 FF 4
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The answer to this is no. If the property needs a new kitchen you as the landord funds it and gets the work done by your choice of tradesperson. You do not ever allow a tenant to do any work on your property. You would be responsible if he electricuted himself by having dodgy wiring fitted or by doing it himself because it is your responsibility to replace the kitchen.
You have bought it as a long term investment but if you were unfortunate enough to die in some sort of accident it would become part of your estate and he might get an S 21 from any new owner so doing this is not in his interest either.0 -
As franklee asks: what type of tenancy? AST or secure? Fixed Term? How long?
If he's been there 15 years, then
* yes, he clearly considers it 'home' sowants it nice- just as you and I would
* it must surely be pretty tired by now! Certainly the paint and carpets must be well-worn.What is the state of the kitchen?
This is you investment. It is in your interests to keep it in good condition, as well as in your interests to keep a loyal and reliable tenant happy.
Perhaps the solution is for you to do it up, to standards you are happy with, using contractors you trust/choose, and for the rent to then be adjusted upwards to reflect the improved condition. He clearly has the funds for this, but it's a far better way than for him to invest his capital into your property.
Alternatively, if you decide to go down the route of using his money, then get a clear written statement of
* the work proposed (colour scheme, kitchen manufacturer/units/lay-out etc), and
* who will do the work (DIY? N L Kitchens Ltd? etc)
* who will bear the risks/costs for any damage done in the process0 -
Say yes, get him to fit the most expensive kitchen he can afford, then evict him and let to someone else for more money
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