Tenant Dilemna

[Change at Barnham]

We have a dilemna and are not sure what to do.
We have a property (up north) in which we have an existing (single man) tenant. Because it is managed by a letting agent we receive a net amount of £580 per month. The tenant is clean and tidy and wishes to stay until August. Depending on his work contract (he's a doctor) he may wish to stay beyond August.

Someone we know has mentioned that they would like to rent it and would pay £700 pm with no letting agent fees involved. They would want to stay a minimum of 18 months, but possibly longer.

I would feel uncomfortable giving the existing tenant 2 months notice and forcing him to leave 3 months earlier than he wishes.
However, we would be £1440 a year better off.

What do you reckon? Stick or twist?

 

[Gullflyinghigh]

We have a dilemna and are not sure what to do.
We have a property (up north) in which we have an existing (single man) tenant. Because it is managed by a letting agent we receive a net amount of £580 per month. The tenant is clean and tidy and wishes to stay until August. Depending on his work contract (he's a doctor) he may wish to stay beyond August.

Someone we know has mentioned that they would like to rent it and would pay £700 pm with no letting agent fees involved. They would want to stay a minimum of 18 months, but possibly longer.

I would feel uncomfortable giving the existing tenant 2 months notice and forcing him to leave 3 months earlier than he wishes.
However, we would be £1440 a year better off.

What do you reckon? Stick or twist?

If you need the money then there's your answer.

If not, think about how it could impact your current tenant, who is giving you no cause for concern and is unlikely to right up until the point they leave. Is it how you'd want to be treated if you were them?

I'm sure others will say I'm naive or that the money is the important thing but if you already feel uncomfortable thinking about it, doing it is only going to feel worse.

 

[Thunder Bolt]

You say it is someone you know, rather than a friend. Can this person rent somewhere else for 6 months, if you promise them your flat after August?

 

[Prince Monolulu]

Difficult, a good, reliable payer or more cash? Weigh it up, are you a Tennents Super or a Tennents Extra type of person?

 

[glasfryn]

so you will go running up there if there is a problem ............thats why people use agents , to do the dirty work.
if you have a water leak it could cost you that alone, we live in rented accomodation, land lady lives in Cyprus, so without the agent (who I might say is very good) she would be well and truly snookered.
give it some thought

 

[Vegas Seagull]

Offer the Doc 12 months @ £700 or submit notice. He could leave tomorrow & the 18m chap may have gone elsewhere

 

[sod1]

where abouts up north are you talking ?

 

[Hastings gull]

We have a dilemna and are not sure what to do.
We have a property (up north) in which we have an existing (single man) tenant. Because it is managed by a letting agent we receive a net amount of £580 per month. The tenant is clean and tidy and wishes to stay until August. Depending on his work contract (he's a doctor) he may wish to stay beyond August.

Someone we know has mentioned that they would like to rent it and would pay £700 pm with no letting agent fees involved. They would want to stay a minimum of 18 months, but possibly longer.

I would feel uncomfortable giving the existing tenant 2 months notice and forcing him to leave 3 months earlier than he wishes.
However, we would be £1440 a year better off.

What do you reckon? Stick or twist?

Go with the agent, and stick to something that is legal, rather than with "someone you know". Is this someone reliable -what happens if they decide not to pay -you would have quite a job in removing them. Also, a tenant via an agent would presumably be paying a deposit, which would be payable to you, if they ran off. Stick to what you know works for you. When abroad, we had two flats in Brighton, and went through reputable agents and always had decent furniture for the tenant, writing to them asking if there was anything we could do, as we were determined that they would have what we would take for granted. We never had a problem.

 

[cjd]

We have a dilemna and are not sure what to do.
We have a property (up north) in which we have an existing (single man) tenant. Because it is managed by a letting agent we receive a net amount of £580 per month. The tenant is clean and tidy and wishes to stay until August. Depending on his work contract (he's a doctor) he may wish to stay beyond August.

Someone we know has mentioned that they would like to rent it and would pay £700 pm with no letting agent fees involved. They would want to stay a minimum of 18 months, but possibly longer.

I would feel uncomfortable giving the existing tenant 2 months notice and forcing him to leave 3 months earlier than he wishes.
However, we would be £1440 a year better off.

What do you reckon? Stick or twist?

I have tenants and I wouldn't even consider breaking my agreement with the existing tenant. Presumably when the tenant moved there, the £580.00 a month was sufficient return for you on your property.

Ever heard the saying ..."the grass looks greener on the other side"...?

 

[Change at Barnham]

where abouts up north are you talking ?

It's in the north of Scotland, we originally bought it for our son to rent off us, but he's since moved away.
The possible replacement tenants (known to my son) want it as a second home to occasionally be near their children who are boarders at a private school.

Following the above comments I'm leaning towards sticking with our existing tenant although it hurts to miss out on £1440 extra a year, which is the difference between breaking even and making a bit of profit.

 

[CorgiRegisteredFriend]

I presume you have two properties then? If so then be thankful for that mere fact.

 

[mikeyjh]

Go with the agent, and stick to something that is legal, rather than with "someone you know". Is this someone reliable -what happens if they decide not to pay -you would have quite a job in removing them. Also, a tenant via an agent would presumably be paying a deposit, which would be payable to you, if they ran off. Stick to what you know works for you. When abroad, we had two flats in Brighton, and went through reputable agents and always had decent furniture for the tenant, writing to them asking if there was anything we could do, as we were determined that they would have what we would take for granted. We never had a problem.

100% this - Friends and family have been mentioned as potential tenants for me, but I do like you, rent properties through a decent agent and try be a decent landlord. It's all at arms length though so there's no emotion or trust involved. I would only let, on a short term basis, to friend or family if they really had some sort of crisis.

 

[samtheseagull]

We have a dilemna and are not sure what to do.
We have a property (up north) in which we have an existing (single man) tenant. Because it is managed by a letting agent we receive a net amount of £580 per month. The tenant is clean and tidy and wishes to stay until August. Depending on his work contract (he's a doctor) he may wish to stay beyond August.

Someone we know has mentioned that they would like to rent it and would pay £700 pm with no letting agent fees involved. They would want to stay a minimum of 18 months, but possibly longer.

I would feel uncomfortable giving the existing tenant 2 months notice and forcing him to leave 3 months earlier than he wishes.
However, we would be £1440 a year better off.

What do you reckon? Stick or twist?

What sort of contract/agreement have you got with the estate agent? Could you not end that the start saving on costs?

 

[T soprano]

£580 a month to live up north?? ....really

 

[warmleyseagull]

As alandlord and parent of three doctors, can see both sides here.

TBH, this is a good example of one reason we do not use agents;we like to talk to our tenants and understand their position and ambitions so we can plan lettings. But as you have an aganet, why not first ask him/her to talk to tenant. If he is pre registar level, he may well have rotations that mean he will be happy to give up the flat, possibly even early - our sons often have periods when they are renting but not occupying.

You dont mention a tenancy agreement. Dont you have a TA in place that terminates at a preset time? If you do, there is nothign you can do legally, but, again, a conversation might elicit whether he wants out.

Communication seems to be the answer...

 

[Lower West Stander]

Go with the agent, and stick to something that is legal, rather than with "someone you know". Is this someone reliable -what happens if they decide not to pay -you would have quite a job in removing them. Also, a tenant via an agent would presumably be paying a deposit, which would be payable to you, if they ran off. Stick to what you know works for you. When abroad, we had two flats in Brighton, and went through reputable agents and always had decent furniture for the tenant, writing to them asking if there was anything we could do, as we were determined that they would have what we would take for granted. We never had a problem.

100% agree.

Letting a property to someone you know or friend of a friend is dangerous. having an arm's length tenant and a good agent who you gave good relationships with are far more valuable than a few quid. Doing it yourself only works if you are local and have good relationships with local tradesmen.

 

[surlyseagull]

Presumably you would be paying more tax on your extra profit also, so wouldnt be £1440 .Friends and business do not mix imo .

 

[LamieRobertson]

Presumably you would be paying more tax on your extra profit also, so wouldnt be £1440 .Friends and business do not mix imo .

This is the bit i would go with

 

[moggy]

I've had Problems with tenants before and in my experience, it's better to have a good tenant that you trust looking after the property, my advice would be stick with what you have.
You could always manage the property yourself giving you all the money and cut out the letting agency. That's what I did

 

[Shropshire Seagull]

But the £1440 extra isn't really £1440 is it?

I'm guessing here but could be wrong, if you are able to fund a BTL you're likely a 40% tax payer, so HMRC will take £576 of your extra gain leaving you with £864 after tax.

I've had several BTLs over the years and always managed them myself and [touch wood] never had a defaulter. If your mate says "Sorry, bit skint this month can I miss a month" - the friendship may be jeopardised.

Landlord / Tenant is a commercial arrangement - don't lose sight of that .....