This is a story, so far without an end and shares some of what really happens in real-life rental properties with real-life tenants, who have real lives...as do real-life landlords by the way! It is not (yet) a disaster movie but it is not exactly a Saturday matinee either. It does however go with the territory of being a landlord, so 3D glasses on and all that...here goes...
I took in a tenant family about 9-10 months ago. They were relocating to the area and starting anew there, the Dad and main breadwinner is a tradesman. As a result of the change in circumstances, their income was not provable or reliable and so we accepted their offer to pay six months in advance whilst they got on their feet.
Lesson #1 - take care when agreeing to these types of tenancies, as there is a risk that things may not work out...the six months in advance at least protects the rent for the term but not beyond it should they decide not to leave.
The six months went well in terms of looking after the property etc. but when it came to discuss the renewal around two months prior, the business and income had still not stabilised sufficiently to justify the rent checks to switch to monthly payments. So, we agreed to extend on the same basis as before - six months in advance with a review later on.
At the time of renewal we received a payment for four months and not six...
After quite the run around and a series of unanswered calls and emails, we finally got hold of the tenants...claiming essentially that they had never agreed to pay six months in advance, although how they arrived at four is a mystery, as that was never discussed. It seems that a lot of the discussions with the agent were by telephone...
Lesson #2 - put all agreed in writing to avoid any later dispute.
OK, so we managed to explain and restate our position and asked that they make good the two months' shortfall. They agreed but failed to pay. Eventually after a bit more hide and seek, we got them to admit that they were a bit pushed to pay. They then suggested a payment plan of some money in a few weeks and the balance a few weeks later...note their dates and amounts, if later than originally agreed, and already revised once.
Lesson #3 - try and work to a reasonable time frame, suggested and agreed by the tenant and document it in writing once again for future reference.
Guess what? The day before the first payment date, they called and asked to switch to monthly payments from the renewal of the tenancy in a couple of months. What is this telling us? Yes, they are struggling financially and I might have been sympathetic to the monthly payment request at the right time, explained well and with no outstanding payments. However, the gun-to-the-head style of approach just one day before they should have paid an arrears instalment set by them did not land too well. We restated the position that first they needed to make good on THEIR promise and then we could consider their request for the renewal.
Lesson #4 - be fair but firm.
Of course, they did not make good on their word and have not done so for around six weeks now. Then, today we receive an email stating they will be leaving in December...the tenancy ends in early February however...we call and explain this to them. Their response was: 'we thought we could leave when we wanted'!
Lesson #5 - some tenants won't read their tenancy, even the bit at the start that says start date and length of tenancy!
So, that was earlier today and as you can no doubt tell, this one will probably roll on for a while yet. I have no problem in letting them out early, as long as we have no void period and no arrears in the meantime. But at present we have a tenant seeking an early release, not paying the agreed rent and by the way seeking a good reference for their new place. Should I give a good reference to let them go, then I am not doing right by the next landlord. However, should I inform the reference agency of the situation then I may be stuck with a distressed tenant...in more ways than one. Stuck between a rock and a hard place then.
I am therefore in limbo right now. However, we are trying to arrive at a sensible win-win position...it's just that at least one side doesn't seem to think the idea of win-win means they have to give something up in order to get something back...not yet at least.
Lesson #6 - like a decent movie, there is always a twist or two in the plot...let's see what or how many more we get here...will it be a light comedy, a drama or a tragedy?
I will update you as the story draws to a conclusion...oh and in case you were wondering, Macaulay Culkin is not dead despite what you may have read on Facebook!