House is 2 bed. Tenants 2a 2c have been with us 4 yrs. Rent is 200 below achievable. We want to extend to 4 bed. We have agreed to keep rent same for the next 3 yrs (as compensation) until fix finishes and then see whay the mortgage rates are at that point. At that point rent will have to increase if its still viable and if they can afford to stay or whether they then move on. Question is should we get a new contract agreed to confirm rent wont increase…leave it as it is and just get new inventory done? There will be a new kitchen…2 new bathrooms as well as 2 new bedrooms?
My suggestion: If there is no change to the rent or the terms, just confirm in writing that the renovation works will take place, the rent is fixed for three years, that you understand that they are happy to live with the ongoing renovation work as described to them (summarise it is best to avoid come-backs) unless they respond within 7-14 days to the contrary, and then follow legal process in 3-4 years time to increase the rent.
Sorry to say, but this sounds like a mistake. Its likely that the living conditions during the re-furb will be difficult or even intolerable and you can’t really bribe tenants to put up with it. They have legal rights regarding their living conditions and if the council get involved you could find that you end up having to pay for alternative accommodation for them during the fix AND give them a cheap rent for the next 3 years. I suggest you re-consider the whole thing. If the refurb is crucial then you may need to evict the tenants before doing it.
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you are putting a big extension on it? This can be done whilst tenants are in the “old” part of the house ,but can be disruptive in noise and materials and skips Then eventualy you will have to break thru to join up
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Not crucial…we have money to do it…they need a bigger house as they have a boy and girl that share a room. We thought we would be helping…ideally they want to buy dont have the salary multiples to get a 3 bed house in our area. Her parents live nearby and indeed they lived there for a while before finding our house to rent so if it got to it they could move there for a week or two if required obs would adjust rent accordingly. We mansge prop ourselves and have good relationship with them
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a couple of weeks is optomistic
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Its only the knock through that would be disruptive. The new beds would be ready for moving into and new kitchen in place before old one becomes utility. Existing bathroom untouched. Personally cant see a problem. They get a 4 bed for same rent as 2 bed and guarantee home for 3 yrs for a bit of dust!
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You may all be entering into this in good faith, but it can quickly change when the reality of the situation bites.
I’m also not sure why you would deliberately saddle yourself with a well below market rent for a further 3 years. Letting property is a business and if you don’t treat it as such, it will come back to bite you.
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I have done loads of jobs like this as a builder and joiner . Without exeption all said they had not realsed the disruption and mess would be so bad .PS at least try to find a builder who does not play loud music, is tidy and does not swear at the top of his voice . Now there is a challenge
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I know - us LL aren’t all money grabbing horrible people… i get what you are saying…we have architect coming out this week so csn akways get planning permission and then decide if we are to proceed. Alternative is to wait till they leave and do it whilst empty but no income coming in…
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If you equate letting property professionaly as being a money grabbing horrible person then there is nothing more to be said. Good luck!
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Isn’t that what everyone else thinks of LL’s?
Can still be professional and make money as well as helping someone out but i guess it is a risk if we proceed. Probably won’t having listened to your views and appreciate your input
no harm in putting in for planning permision, It lasts for a few years
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Agreed. Will do this anyway as it adds value to house if we do end up selling in 3 yrs time. Architect booked to come tomorrow so will get plans drawn up and put in. House across road just done the same thing so dont envisage a problem with local authority.
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You’ve made your mind up but David122 and Colin are spot on. You need a very tight written and signed agreement.
Don’t be so sure you can put your rent up in three years if legislation and rent caps arrive.
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Hi where is the house and how much is the rent and deposit
We are a family and i want to rent a house
I was considering an extension, have been told after covid materials costs have shot up and in shortage too, 3 quotes, average 3200 per sqmt, property prizes stagnant at present as interest rates are rising, so in the end decided not to do the extension. Your house, your decision, good luck
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We have had the plans drawn up…going through to planning. As interest rates now decent we are going to put the.money away rather than have no return on our money and see what happens in 3 yrs with interest rates when our fixed rate comes to an end. Ultimately seemed to much risk with tenant in situ. If we sell it will be sold with planning consent so will benefit sale price.
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Don’t do extension with tenant in situ. Your ‘promise’ can be used by tenant as harassment. They can sue you also for stress and disruption as well as damage to their vehicle or property. Do not get planning permission when they are in situ as this too will be harassment to either pay more rent or leave.
What you are suggesting will land you in a whole new world of pain. If you want more rent ask for it if it’s too low. Otherwise let this idea sleep for 6 months then serve notice and then follow your plans. You are 100% setting yourself up here to be sued.