Tenants paying reduced rent - what to do?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Tenants paying reduced rent - what to do?

    Sorry this is a bit long ...

    On 25 April 2008 I rented out a 3 bedroom house to 3 individuals on a 12 month Tenancy Agreement, at an agreed rent of £1,250. Whilst the Tenancy Agreement was joint and several, and I received payment in one lump sum, in reality I believe that the tenants split the rent between themselves into two payments of £500 (for each of the two double rooms) and one payment of £250 (for the remaining single room).

    They paid the rent promptly until around December 2008, when I received notice that they wished to bring the tenancy to an end because 2 of them had lost their jobs. On double checking the Agreement, it seemed they were allowed to do end the tenancy on 30 days notice.

    The remaining tenant - (we'll call him Tenant #1) - told me that he wished to continue renting the double room at the property at £500 pcm. He managed to find a new sharer for the other double room at £500 pcm (we'll call him Tenant #2). He also told me that he would continue to search for a third sharer to pay the remaining £250. On this basis, in December 2008, I agreed to a new 6 month Tenancy Agreement whereby the rent would be £1000 for the first three months of the tenancy and £1250 for the second three months (by which time a third sharer should have been found).

    Three months into that agreement Tenant #1 has found a third tenant (Tenant #3) but Tenant #2 is now leaving. According to Tenant #1, Tenant #2 has failed to pay his share of the rent since January 2009 and Tenant #1 has been meeting the shortfall, which he can no longer afford to do. He tells me that he is looking for another sharer but is yet to find one.

    This month I received rent of £750, (presumably made up of £500 from Tenant #1 and £250 from Tenant #3). Whilst I could live with the original reduction of £250 pcm to £1,000, a reduction to £750 means a fall in rent of £500 pcm.

    I am considering allowing the tenants to stay in the property until the end of the Tenancy Agreement (June 2009) at the reduced rent of £750 if they are prepared to agree that I do not have to return their original deposit of £1250 as, frankly I am keen to avoid the hassle and cost of getting rid of them and finding new tenants in the short term. However my concern is that I am now dealing with different people - i.e. not the same people who signed the December Tenancy Agreement. Am I therefore technically entering into a new Tenancy Agreement? And if it is a new agreement, would I be entitled to vacant possession in June? Would I need to give notice now to end the agreement in June?

    I should end by saying that the Tenant #1 does seem like decent honest person and the house is exceptionally clean. However, I fear that if I simply allow another reduction, there is really no incentive for him to find a third sharer. BTW it looks like the standard rental for this type of property in this area is £1000 to £1100 per month, so rent of £750 would be very cheap.

    For those who made it to the end of the saga, thoughts would be welcome!

  • #2
    Just bumping this as it as slipped to the second page with no responses. Any thoughts appreciated!

    Comment

    Latest Activity

    Collapse

    • Long Term Tenant - how to protect both LL and Tenant
      Paul4321
      Hi All,

      I'm hoping for a little guidance. I'll almost certainly be following up with some professional advice but hopefully some folks here will have been in a similar situation and can offer some advice. I have done a quick search but not found anything obvious.

      I already...
      20-07-2017, 10:07 AM
    • Reply to Long Term Tenant - how to protect both LL and Tenant
      wfd_property
      200 miles. Work needing doing? Tenant wanting 10 years? Why on earth doesn't he aspire to buy a place?

      Flip it in a local auction. Use the money to buy something local to you and let to a stranger for 6 months....
      24-07-2017, 22:40 PM
    • Help re flatsharing legal position!
      CatherineCarr
      Hello, I moved into a friend's flat when she moved out of London last year. It was agreed that I would pay market rate, would not need to pay a deposit, be able to bring various items into the flat, work from home, have a certain amount of storage etc.etc. I was also to share with my friend's then...
      24-07-2017, 13:18 PM
    • Reply to Help re flatsharing legal position!
      Wright76
      I think your friend Emma sounds like a bit of a plonker to be honest and I'd let her get on and deal with the problematic tenant herself.

      Any landlord that allows a tenant to withhold rent and then support them in such a way sadly deserves what's coming.

      Unfortunately for...
      24-07-2017, 22:36 PM
    • Structuring a deal - Purchase Option/Overage Agreement?
      pdmalik
      Hello,

      There is a derelict property with good potential in my area. The owner tried to sell it in a local auction few years back and did not get what he wanted (actually did but got greedy). Now he can even sell it for cheaper than what he was getting in the auction. Property has good potential...
      23-07-2017, 16:52 PM
    • Reply to Structuring a deal - Purchase Option/Overage Agreement?
      wfd_property
      So you are wanting to act as the owners agent, submit the outline planning agreement, represent the property at the national auction?

      Surely he simply signs to confirm agreed disbursements and your commission percentage?

      Are you able to say which university city this is?...
      24-07-2017, 22:25 PM
    • Tenants want to buy, advice needed
      Manchesterlandlord
      hi there

      had tenants in a property for 4 years. Looking at selling the property for various reasons and they are interested in buying but need more time to get a deposit together. Has anyone ever set up a deal like the rent to buy schemes you used to get with new builds?

      t...
      24-07-2017, 19:54 PM
    • Reply to Tenants want to buy, advice needed
      wfd_property
      Do they have a mortgage in principle? Will they show you bank statements / letters from parents to confirm that deposit is almost there?...
      24-07-2017, 22:21 PM
    • Reply to Tenants want to buy, advice needed
      KTC
      "More time" - days, weeks, months, years?

      Can you wait that time? How long would it take you to evict to sell with vacant possession? How much of a possible hit would you need to take to sell with tenant in place?
      24-07-2017, 21:44 PM
    • Freeholder Scaffolding Over My Flat
      Jcg76
      I have a leasehold studio flat with a garden in London that I rent out to tenants.
      Recently, the freeholder gave me three days notice that he was extending part of the building my flat is joined to and he would need to put scaffolding on my flat roof and in my garden. I immediately objected saying...
      24-07-2017, 21:20 PM
    Working...
    X