I have great tenants, but I have left a painful conversation overdue, any tips?

Reply to the comment left by Michelle Smith at 08/11/2022 - 12:57
I had this issue last year ..we have one property divided into 2 flats, no common areas. Downstairs tenants saw a mouse a couple of times so I asked upstairs and he said he'd seen one. We lived in the upper flat ourselves once and knew that in very rainy weather mice seek shelter because their nests get flooded. They get in via any small holes..so we put covers with very tiny holes over the airbricks and used electric traps to kill the mice efficiently. I asked tenants to check airbrick covers and all were still ok so we assumed it was mice seeking shelter. I sent both sets of tenants several electric mousetraps to put where they'd seen mice running and plug in Mouse deterrents plus a large pack of batteries each to run them all. Both tenants caught a couple of mice in them and since then (about a year) there's been no problem. I think it's best to nip it in the bud and just deal with it yourself by providing efficient humane traps and blocking mouse access as much as possible. We have insurance that provides cover for a bigger infestation but we didn't want it to escalate to that. I think the faster you act the quicker it's sorted. Tenants don't want to spend their own money ...and it's in the landlords interests to eliminate the issue. The majority of us charge enough rent to cover such things ourselves. My tenants have all been in situ for several years (one is 8 years) and they are good tenants. I've never put the rent up either...I'm happy with them as good tenants and I'd like them to stick around.

A little and every 18 months keeping below market rents seems to be the answer for long standing tenants. New ones pay a market rent. How otherwise can you upkeep the property.

I did the same about a year ago. I gave the tenants the option of 20% below market value. some stayed some left, perhaps 50/50. Of the ones that left the properties went back onto the market at full price and rented on the day they went on the market. Wish I had done it years ago. Alas, being nice is nice, but I also have to live and this is the first time in a long time I actually have some spare money.

Reply to the comment left by Richard Sylvester at 08/11/2022 - 10:20
You are not doing your tenants a disservice by allowing them an affordable place to live and giving them an opportunity to save. Don't be so ridiculous.

There are consequences for under charging rent,
You will not have the money for a new central heating system when it is neccesary or other maitenence, The centralheating engineer will not give you a discount for being a good landlord,
When you tenant needs to move on there will be a significant increase to a market rent which they may well not be able to afford.
You should frquently increase the rent by a small increment so as to keep them to within touching distance of the market

Reply to the comment left by Cindy powell at 08/11/2022 - 20:11
Many thanks for the update on mice, the plug in mouse deterrent is a good idea, I've arranged a visit from pest control tomorrow and advised the tenants.
We've lived in the house ourselves and never any problems, the tenants are nice people, just wish they had told us straight away!

Good luck

Yes standard letter raise to market rates ( section 13) and state rises will annually thereafter.
Email as well written letter
You'll soon be able to replace those who can't pay .
Get rent protection and legal fees insurance protection then no need for concern.
I send my letters proof of posting not recorded delivery as they'll just refuse to sign for the letter .
MCOL as soon as rent late .Section 8 at 2 months arrears as well as a section 21

The changes in taxation for BtLs and interest rates, has made it untenable to keep rents at previous levels. I lowered the rent for a fmaily struggling for past 4 years, knowing the children would be at risk of losing schools and friends etc. I kept them on and waited, helping them until they found a 3 bed house locally at an affordable rent. Building a good relationship helped - I warned them in advance and never threatened them with eviction or courts - lengthy and costly for me, bearing in mind they were in MY property. I did want to put up their rent after 5 years of under charging but just can't afford to now - which they understood. It all went well but took 6 months. If I could have off set the mortgage with tax relief, I would never have placed them in this situation. George Osborne and Truss, have killed the market for everyone - tenants struggle, landlords struggling and no gains except for taxation.
I am tired of subsidizing the government's duty of care and am selling up my properties as it's hard to watch families struggling for homes, but always making us feel like we are the villains here. My tenants understand and they oblige as the climate for homes, rentals has morphed for everyone. I would suggest openness and don't feel bad about something that is not your fault, charging a rent to cover your costs and expenditure for a paltry financial return.

Hi Jose
I emailed my tenants with the new rent increase and a note of all the charges we have to pay from the basic rent, - EP;, EICR; Gas Safety; HMO; TDS; Sublets etc etc. I didn't include the increase on mortgage payments as I take that as my responsivity.

We then had a conversation and they understood why the increase.
Hope this helps, Michelle

Reply to the comment left by Duffy at 09/11/2022 - 14:56
My tenant has been an excellent payer for 6 years, but the agent who put her in has retired, and there is no record of tenant referencing on file with the new agent. Consequently, I cannot take out Rent Guarantee Insurance.