Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 3 weeks ago 48
I have a number of properties I let out at normal rents, but one property I have never put the rent up since the tenants moved in, eight years ago. They pay £1000pcm, the flat would get £1600pcm now, it is in central London.
I know many will say “hey, you’re running a business here”, it was just in this case, I really liked the family, they do poorly paying jobs, but have a very good work ethic, have been completely hassle free and easy to deal with. Knowing they have been on to a good thing, they have dealt with all repairs, and have done some improvements. This year they have just had a baby, though the other two kids are teenagers. I felt it was my duty to give back in some way from the fact I above been lucky with the property market, and this was my way of doing it.
However, due to the tax changes, I obviously can’t afford to effectively subsidise this any more. It is sad, because I very much doubt they could afford the raised rent, so I will be evicting them. Even remaining in central London might be hard, yet their other two kids are already well settled in secondary school just around the corner. The two older kids are really lovely, and it pains me that, due to a tax change for me that has come completely out the blue, their lives will be seriously disrupted.
So what do people think about how I should go about the inevitable? Clearly I would love them to stay and pay the higher rent. But I don’t think they can. I was thinking of telling them I am putting up this rent in November 2016, so they can either choose to stay or spend the year preparing to move somewhere else.
Or would it be better to be more brutal, and give them the contractual notice? Or fib and say I am selling the place? They know where I live (a coupe of streets away) and despite the track record to date, things could turn nasty in desperation. Does anyone have some tips at making this process easier?
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