Helping the Perfect Tenant?

by Readers Question

15:16 PM, 28th August 2019
About A year ago

Helping the Perfect Tenant?

Make Text Bigger
Helping the Perfect Tenant?

I have a bit of a quandary with one of my tenants. He has been with me for nearly 10 years across 2 houses.

Never missed a rent payment and has improved and added value to both of the properties (I have always gone 50/50 with the cost on any improvements my tenants wish to make such as extra patios or better boundary fencing)

It is my intention to ultimately sell the house to him, when I retire (about 5 years) and he has always expressed his desire to purchase the property. The timings could work out perfectly as he isn’t in a position to buy just yet, but will be for a variety of reasons around about the time I want to sell.

All of my properties are investments to fund my pension so I have no intention of selling prior to retirement or moving into any of them.

He has asked me if there is anyway we can guarantee his long term occupancy of the property until he is ready to buy. I can obviously give him all the verbal assurances I like, but I totally understand his dilemma as he is spending his money on a house he intends to buy, but with no security other than a years tenancy agreement.

Does anyone one of you clever people out there have a suggestion please.

Martin


Share this article

Twitter Facebook LinkedIn

Comments

Neil Patterson

15:20 PM, 28th August 2019
About A year ago

Hi Martin,

I would recommend you check out Mark's Deed of Assurance
>> https://www.property118.com/government-discussed-deed-of-assurance-in-2013/

"A Deed of Assurance is a legal solution to many problems and trust issues which arise between landlords, letting agents and tenants. Use of a Deed of Assurance can reduce administration, increase goodwill, improve profitability for landlords and letting agents and reduce costs for tenants.

The basic principles are simple, a Deed of Assurance is a legally binding contract between the landlord and tenant which facilitates integrity. The landlord provides a compensation backed promise not to serve notice on the tenant for an agreed period of time providing the tenant complies with all conditions of the tenancy agreement. This serves as an alternative to providing a long term tenancy agreement which may well be in breach of a landlords mortgage conditions."

Martin

15:58 PM, 28th August 2019
About A year ago

That's Brilliant!
Thank you so much.

Marilyn Price

12:50 PM, 16th June 2020
About 5 months ago

A lease purchhase option would work as well. This is an agreement which allows your tenant to lease the property with an option to buy at a future time at a price agreed by both parties.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Flat owner not paying for agreed roof works?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More