Top up payment not being made.

[Grampa]

I have a dilemma to ponder. I recently just purchased a  house that has been converted into 2 one bedroom flats that was at a good price with the freehold included. The property came with a tenant in situ in each flat both on HB. (my choice)

The GF flat has the same tenant for the last 10 years with the HB being paid in full. However  the top floor flat has a HB shortful of £30 pcm (rent £550 pcm) which is not being paid and 3 months are now owed.  

The tenant is a middle aged man who appears to be looking after the property well though he is a self-confessed alcoholic which I wasnt aware of at the time of purchase . Keep getting numerous excuses why his shortfall isnt paid.

Now I could just accept the situation. If I  had purchased the property empty I would have set the rent at  about £520-£530.

A s21 has been served but do I enforce it when I can and have the extra cost of a empy period, court costs and any titivating works  that are needed.

I think the commercial decision is to let it continue as is while the property is being looked after but it grates to think he is getting one over on me.?

What would you guys do?

Note: The HB payments are paid direct to me and there is no problems with that side of things. There is a council bond in place for £550 which will cover for rent arrears and damage but I cant claim on it until the tenancy has ended.

[Richlist]

If i were in that situation i would leave things as they are.

There is almost always a cost, however small, for a tenant change over. Void periods, if only a few days still cost money, then you are bound to find the need for a few repairs, a bit of decorating/tidying up.  Then you shouldn't forget about the time and effort required for all the admin and paperwork for a new tenant.

So, you might receive another £30 pcm /£360 pa......after tax considerably less. I suspect the true cost of a tenant change over will cost you more than that.

If the current tenant is paying his share of rent and looking after the property it makes sense to keep it as is. Although I'd keep a close eye on the drink situation and be prepared to part company with him should things take a turn for the worse.

[bil8999]

Hi

We had a similar problem, after the tenant moved in we found out he had a drink problem, at first he avoided paying the shortfall, we told him that we would evict , he then got sorted out by paying DD, so if he is happy living there he will find the shortfall and pay, ask yourself what will happen if in the future you raise the rent, he still wont pay.

 

[Grampa]

I have no intention of raising the rent for a few years as the property was purchased with HB tenants in mind and the rate is £520  so £550 which it currently is rented at would have been the absolute max I would have rented it at.

I will keep plodding on pestering him for the top-up and also get the council involved to bend his ear.

[Melboy]

Leave it as it is but with a polite letter to the tenant about the missing top-up money. This may work but if not,  it will not be the end of the  financial World for you if it doesn't.

[Carryon Regardless]

Better the devil you know, but monitor closely.

He has lost a grip of life and it takes very little for things to deteriorate further. When he stops looking after your investment he has to go.

In a simialr situation I tried to give the T more responisbility. Making sure the correct bins are out on the right week. Some care of the local environment, clearing stray rubbish , weeding, extra clean up around the palce....... In truth it never worked as I'm remote and couldn't manage him daily. When he absconded the clean up of his 'stuff' was a significant effort. So to me attempting to prepare for that day has intelligence, making sure he doesn't fill the flat with whatever that will be your later problem.