Tenant wanting to sub-let

Tenant wanting to sub-let

11:38 AM, 11th August 2014, About 10 years ago 23

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Since 2009 I have let a flat that was my mother’s through a letting agent. The agent is very inactive and I was thinking of closing that contract and managing it myself. I already arrange all repairs etc myself. There have been no rent increases since the tenant moved in and I’m contributing to a new roof this autumn, so avoiding agency fees will help with the loan for improvements – I was also thinking of a small rent increase. Tenant wanting to sub-let

The tenant has always paid his rent on time and keeps the flat in good condition (less good at gardening!) and talks to me fairly often. As he travels for his (creative and fairly low-paid) self-employed business he’s asked if he can sub-let one of the bedrooms to help him with the rent.

I appreciate I may have to pay an introduction fee to the agent to release myself from their contract, but I’m not sure about the sub-letting.

The tenant is concerned that a joint tenancy would make his position more insecure and has asked to sub-let.

Is there any advice on this please?

Thanks

Lesley


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Comments

micky alderson

12:52 PM, 12th August 2014, About 10 years ago

I would use this situation as a fresh start in the following manner,

1). start a new AST in both names ,subject to Refs.

2). use the monies saved in agents fees to install a low maintance garden.

3). increase the rent to the market value.

This is the way I would go about it.

Mandy Thomson

13:33 PM, 12th August 2014, About 10 years ago

Reply to the comment left by "PHILIP PERSEVAL" at "12/08/2014 - 12:24":

I don't see how having one extra person living there (whether a lodger or joint tenant or excluded tenant) would subject the property to HMO regulations.

"Properties which are shared by two individuals are exempt from the HMO definition as are those with a resident landlord with no more than two lodgers." Source: National Landlords Association.

To be liable for additional HMO licensing (if the local authority runs a scheme) there would have to be at least 3 unrelated households (household being an individual, couple or family) sharing, in addition to the live in landlord.

PHILIP PERSEVAL

14:24 PM, 12th August 2014, About 10 years ago

Reply to the comment left by "Mandy Thomson" at "12/08/2014 - 13:33":

Hi; depends upon various factors: number of flats owner occupied/shared basic facilities in house/conversion date or purpose built etc.

Simply google HMO for gov rules which are basically unclear. Safest to sell and ensure £20k fine is avoided . . . good luck with council bureaucrats who may not apply HMO rules correctly . .

Lesley Hart

18:31 PM, 12th August 2014, About 10 years ago

Hi everyone

Many thanks for all your comments and help on this. I'm meeting my sister tomorrow - my co-owner of the flat - and we'll go through all of these comments and see how we want to take it forward. I'll re-post once we get to a decision - may take us a few days! I'm really grateful for all your thoughts on this

Lesley

Mandy Thomson

19:07 PM, 12th August 2014, About 10 years ago

Reply to the comment left by "Lesley Hart" at "12/08/2014 - 18:31":

Good luck, Lesley.

Most people are decent, so it's unlikely there would be any real trouble with a lodger, but there are a small number around (as the poor chap last week who had a couple of ex friends commandeer his house found out) who are selfish and irresponsible enough to take advantage of someone who gives them a roof over their head.

However, both you and your tenant sound like the kind of people who will carry out your due diligence, so I'm sure whatever you decide it will work out.

Lesley Hart

19:21 PM, 12th August 2014, About 10 years ago

Reply to the comment left by "Mandy Thomson" at "12/08/2014 - 19:07":

Many thanks, Mandy, I've appreciated your posts

Lesley

Harlequin

9:14 AM, 19th August 2014, About 10 years ago

HMO doesn't apply to this.

PHILIP PERSEVAL

13:30 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "Harlequin Garden" at "19/08/2014 - 09:14":

Hi; good luck here but still recommend selling with 100% mortgage over 7 years with fixed 8% interest rate.

Impossible to ascertain HMO status upon information supplied and yes, one more separate household could create an HMO status or at least an argument with the local council officials.

Mandy Thomson

14:36 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "PHILIP PERSEVAL" at "19/08/2014 - 13:30":

Hi Philip

I believe Lesley's tenant is just talking about one lodger (either one person or a couple sharing a room under a joint licence or tenancy agreement) as she uses the terms "subtenant" and "lodger" in the singular.

I can see how it might be possible for a rank and file council official to misunderstand the HMO rules, but I would expect the matter to be quickly resolved on appeal to someone more senior - however, while I know there's some confusion over additional licensing for small HMOs (where there's more than 2 lodgers - again, I also mean a couple sharing a room), I'm not personally aware of anyone falling foul of HMO rules with just one lodger - can you cite an example of where this has happened?

PHILIP PERSEVAL

15:04 PM, 19th August 2014, About 10 years ago

Hi; yes - happened to me whereby 3 separate flats sold upon 999 year leases had 2 sub-let to single households by long leaseholders.

No shared facilities BUT old pre 1991 x 3 storey conversion. 1 flat now empty so temporary council HMO postponement pending relet.

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