My tenant is returning to India for a 6 week visit and has asked me to keep his room for him. I would like to offer a reduction in the rent whilst he is away (as it includes bills) but have no idea what reduction would be appropriate. Any advice?
Why offer a reduction? Would you do that if they had 6 x 1 week holidays?
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You could offer to reduce it by the estimated amount that your bills would go down by ie energy, water, etc that are dependent on individual usage - you could check past bills to get an idea… but the reduction won’t be significant unless he’s a high user. Other that that, your tenant is still receiving a service i.e. his room, so not sure why you would reduce it.
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Most of my tenants are from India and other distant lands and they frequently take extended breaks back home. This doesnt warrant a reduction in rent.
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Given that you want to give a reduction - & you could argue reduced wear and tear - I would suggest 20%.
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It’s refreshing to see a landlord reducing rent for 6 weeks as the bills will be reduced for 6 weeks. So fair! What you could do is charge normal rent for 6 weeks then guage if there were any savings during that 6 week period and lower his rent for a corresponding number of weeks for the amount that was saved on the actual bills (or lump sum). Amazingly fair landlord you are.
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You are opening yourself up to a very slippery slope. If you enjoy hassle, heartache and financial loss then go ahead!
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if it includes bills then you should have some idea of how much his bills are. Simply reduce by the average if you really want to.
But, like others on here, my long experience would tell me not to reduce it unless asked… and even then, any reduction should be mutually beneficial i.e. with a view to securing a long-term excellent tenant.
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Overseas tenants sometimes take extended breaks every year. If you’re not careful you end up with only 46 weeks rent every year.
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Your fixed costs remain the same eg Council Tax, mortgage, repairs.
Bills such as water gas, electricity aren’t going to be significantly reduced, if at all, if the tenant is living in a shared house/flat. You still have to supply above for other tenants.
unless the T is the only other occupant along with the LL, in which case you would likely qualify for a reduction in Council Tax for single occupancy. “Repairs” will be lower because T will not be there to cause wear and tear/damage.
Experience tells me that you feel you want to help the tenants however it can sometimes back fire as they are people and people can be unpredictable. What I have done in the past is still take the rent. And if all being well and they are still a tenant I return them say 1 months rent at Xmas as a present for their loyalty it’s much more appreciated believe me. However you will still need to accept they can still become bad tenants if circumstances change in their lives.
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The council is not going to reduce the council tax for 6 weeks
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Isn’t it? Why not?
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The council will ask for the tenants forwarding address and when the landlord says they’re abroad but coming back in a few weeks the council will say you’re having a laugh that’s the tenants permanent UK address. We don’t give discounts for holidays.
You really needed that explained?
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Yes, thank you.
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It will totally backfire. She would be sending out very confusing messages to the tenant that rent is negotiable, depending on circumstances. Next step the tenant will start to push the envelope and see what else is negotiable. This will end up as a lose-lose for both. I don’t understand landlords who get so involved with their tenants that they even know if they are going on holiday! To me, a tenant has a right to quiet enjoyment which means I keep out of their life entirely, I certainly won’t be getting involved in their holiday plans.
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@Graham I don’t think your judgement on LLs getting “so involved” applies in this case. As Amanda has said
It’s either an HMO or a lodger, and the T approached her with the request. Not only that, but depending on her insurance, a vacancy of that length of time may void cover if she didn’t notify the insurance company.
Personally, I appreciate my Ts letting me know that they’re away on holiday even if it’s only for a week. It prepares me in case I have to attend for an issue they can’t deal with because they’re away. In return, we always let our Ts know that we’re going away and may not be able to respond as promptly as we typically do.
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My answer would depend on whether you tenant was a lodger or had and assured shorthold tenancy agreement.
But both depend on you knowing roughly what the tenant costs you in bills .
Basically your offer should you choose to make it should only include a reduction to cover the actual cost of electricity and gas consumed…
If you are keeping the room for them you are still paying out electricity and gas standing charges and water rates.and any council tax (you can’t suspend council tax liability for a visit abroad) And of course if they go away in winter you may save a little more in fuel consumption - whereas in summer that may be much less.
A number of landlords also experience the issue that sometimes those that go “back to India” or some other place sometimes fail to return - for this reason I would consider asking them for rent payment to cover any payments due during their absence in return for the discount - or only repaying the discount on their return.
Don’t confrontational and I love your approach or being understanding - you are a landlord after my own heart… But while doing so be wise to safeguarding your own interests .
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