Long term tenants want to buy a new bathroom

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    Long term tenants want to buy a new bathroom

    As the title says really; long term tenants (they will never move out) want a new bathroom. There is absolutely nothing wrong with the current one, they just really want a new one and have asked me if they can get one if they pay for it.

    My Dad is a tradesman so would be doing the work (properly) so there's no risk of a cowboy doing it.

    Is there any drawback to allowing this to happen? It's a brand new bathroom bought for me!
    I guess the only thing that's in my head is that if for some reason they do decide to move out (which is 99.9% unlikely because they have no money for a deposit and even if they did, they wouldn't be able to afford a house like the one they rent)... then could they ask me for the cost of the bathroom back?

    Any feedback welcomed as always!

    #2
    Personally I'd probably want to pay for it (all that lovely allowance against tax, it's a 20% discount).
    I'd increase the rent (carefully checking the tenant's fees act rules) to allow them to pay for it in instalments and pay for it myself.

    Everyone benefits, provided you can take the cash flow hit.

    Sound like decent tenants.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thanks jpkeates.

      If there was a problem then I wouldn't have an issue paying for a new bathroom (cash/cost isn't an issue). There's absolutely nothing wrong with the bathroom as is - it's just not to their taste and they fancy a change but obviously can't justify asking me for a new one so are offering themselves.

      I may suggest your way and see what they say.

      With regards to my final point in the opening post, would there be any recourse in them saying I "owed" them money should they ever go?

      Comment


        #4
        The normal rule is that any fixture and fittings the tenant install become the property of the landlord. However you should probably make them aware of that, in writing, to avoid later issues.

        Comment


          #5
          I'm just imagining Redhitman falling out with his tenants at some point and finding the house missing a bathroom.

          (Don't do it buddy.)

          Comment


            #6
            Originally posted by RedHitman View Post
            Thanks jpkeates.

            If there was a problem then I wouldn't have an issue paying for a new bathroom (cash/cost isn't an issue). There's absolutely nothing wrong with the bathroom as is - it's just not to their taste and they fancy a change but obviously can't justify asking me for a new one so are offering themselves.

            I may suggest your way and see what they say.

            With regards to my final point in the opening post, would there be any recourse in them saying I "owed" them money should they ever go?
            That's why I've suggested doing it this way.
            This way, they agree to pay a higher rent.
            You agree to fit a new bathroom that you otherwise wouldn't.
            The two things aren't directly connected, it's just that the increased rent for 2 years is roughly the cost of the bathroom (you could probably afford a few % off, if you'll get it back in tax and your dad's doing the work).

            If they pay for a new bathroom, they might try and claim something (if they're happy tenants, if they decide to move out, something will have happened in the meantime) and, even though I think it would be fruitless, who wants to sit and work through the toilet being a fixture, but the soap dish is a furnishing which they might have a claim to?
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              Originally posted by RedHitman View Post
              ...even if they did, they wouldn't be able to afford a house like the one they rent
              Sounds like you're charging considerably below market rent. Any reason for that, (other than a manky bathroom)?

              Comment


                #8
                If the tenants state of fitness has been changed or the present bathroom is not fully complying with health & safety standards then it should be the landlord's job (maybe those members either own property or are letting agent might disagree). Also only on that basis you can't serve them notice to leave if their state of fitness actually need that.

                Comment


                  #9
                  I had a set of tenants who had a baby and wanted to swap out the shower unit in the bathroom for a bath.

                  I told them to go on and do it, as long as it was done by a professional. All in all it was a good job that was done. They were able to keep the shower that was already there and installed around it.

                  In this case these are tenants that have been there years and I don't expect them to be moving anytime soon, specially with a small child. It seems like the best thing to do in my situation.

                  Comment


                    #10
                    Originally posted by DPT57 View Post

                    Sounds like you're charging considerably below market rent. Any reason for that, (other than a manky bathroom)?
                    Haha. The bathroom is fine!

                    Not considerably, no - but under market value, yes. The tenant is a lifelong friend.... so, (slightly) mates rates...

                    Comment


                      #11
                      I rent a flat to a friend in need. He is always agitating for renovations. I point out the tenancy agreement he signed last year.

                      The rent is discounted by £200 in view of the poor state of the flat. If the tenant or anyone else at any time takes any action to require the landlord to make any improvements, the discount will no longer apply for any of the rent days after the action and the rent will be as stated from the start with no discount
                      I ask if he wants to pay the higher rent. (No.) Then you don't want me to renovate, do you?

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                        #12
                        Let them do it - but get it in writing that it becomes part of the property once done. Perhaps even split the cost - let them pay for the fixtures etc & you pay your Dad for the installation.

                        Just be sure everyone understands it stays if they go!

                        Comment


                          #13
                          Originally posted by jpkeates View Post
                          Personally I'd probably want to pay for it (all that lovely allowance against tax, it's a 20% discount).
                          I'd increase the rent (carefully checking the tenant's fees act rules) to allow them to pay for it in instalments and pay for it myself.

                          Everyone benefits, provided you can take the cash flow hit.

                          Sound like decent tenants.
                          Hey, wouldn't an improvement be only CGT allowable when he sells ?
                          And wouldn't you be a pretty crap landlord if you only pay 20% tax ?

                          Comment


                            #14
                            I try hard to make sure I only pay basic rate tax and hope not to be a crap landlord.

                            The improvement arises simply because a new bathroom is better than an old bathroom.
                            There wouldn't be a material increase in the value of the property outside of that.

                            If an entirely new bathroom was added that would probably be a capital event.
                            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                            Comment


                              #15
                              Originally posted by Section20z View Post
                              And wouldn't you be a pretty crap landlord if you only pay 20% tax ?
                              I would say that makes you a very smart Landlord!

                              Comment

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