Should I sell or risk tenants buying at undervalue price?9:08 AM, 25th September 2019
About 4 weeks ago 48
My tenant has been in touch to advise that her partner has moved out and that she can still afford the rent if she makes a part-payment when she receives her wages and another mid-month when she receives Universal Credit.
She was late with rent twice recently but always made a part-payment on time then paid the remainder when she promised to a couple of weeks later, so I suspect he left a while ago and she’s been struggling with the adjustment in household income and wants to propose and formalise what she thinks she can manage. She isn’t asking to reduce the rent, just to pay it differently, across two payments a month instead of one.
On the one hand I can see as a now single parent she could be a great long-term tenant and that it could be to both of our benefits if I agree. On the other hand, alarm bells are ringing.
I haven’t let to benefits claimants before as I always let to Professionals who must pass a reference check which includes affordability (although she is working) and letting to claimants has never been part of my business model. I realise however that UC can be claimed for several things and as already said, she is still working.
Pros: potentially good long-term tenant (apart from the previously mentioned two blips which she made good promptly), saves evicting someone who has previously been a good tenant.
Cons: if she’s struggling, might she default anyway, if I stall impact re. changes to Section 21 to consider etc. if she then defaults, potential for income fluctuation/instability esp. Brexit uncertainty looming re. jobs (but that’s true of any tenant right now).
Anyone help me see the wood from the trees? I don’t want to kick someone when they’re down, especially when seem to be trying hard to see a way through, but equally I’m cautious/cynical!
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