ourlol
28-03-2005, 11:58 AM
I am the landlord of a property, which is rented by 4 medical students (one of whom is my son and I pay his rent).
I am in the process of renewing their tenancy agreements for the next academic year because I needed to raise the (all inclusive) rent slightly. At the moment I’m not covering my costs!! Okay I’m a soft touch. It was never my intention to actually profit by their rents since my plan is that any proceeds from the eventual sale of the house in 3 years time will be used to help pay off my son’s student loan. Buying the house was seen purely as a way of helping him out and keeping me poor.
Anyway, their new tenancy agreements will run from 1st August 2005 until 31st July 2006. They have much longer terms because of the nature of their course. Their student loans are paid in August, January and April in 3 ‘equal’ instalments. I, in turn, ask for 3 pre-dated cheques, which coincide with the date in which they receive their student loan. The trouble they have is that their first cheque is higher than the others because it needs reflect the period August-January (5 months). As a result they struggle to live because it drains their student loan income in one large hit. In fact in one case the first payment of rent actually exceeds his loan for this period. Naturally later on in the year, when the rent instalment is lower, he has some money left over. They are wondering if there is a way of spreading the payments more equally over the year.
My problem is I need their rent to pay the mortgage, so 3 equal payments doesn’t work for me. I would be left with a shortfall in that first term.
Has anyone any suggestions on how I might resolve this? I’d like to help them out, but….
Laura
I am in the process of renewing their tenancy agreements for the next academic year because I needed to raise the (all inclusive) rent slightly. At the moment I’m not covering my costs!! Okay I’m a soft touch. It was never my intention to actually profit by their rents since my plan is that any proceeds from the eventual sale of the house in 3 years time will be used to help pay off my son’s student loan. Buying the house was seen purely as a way of helping him out and keeping me poor.
Anyway, their new tenancy agreements will run from 1st August 2005 until 31st July 2006. They have much longer terms because of the nature of their course. Their student loans are paid in August, January and April in 3 ‘equal’ instalments. I, in turn, ask for 3 pre-dated cheques, which coincide with the date in which they receive their student loan. The trouble they have is that their first cheque is higher than the others because it needs reflect the period August-January (5 months). As a result they struggle to live because it drains their student loan income in one large hit. In fact in one case the first payment of rent actually exceeds his loan for this period. Naturally later on in the year, when the rent instalment is lower, he has some money left over. They are wondering if there is a way of spreading the payments more equally over the year.
My problem is I need their rent to pay the mortgage, so 3 equal payments doesn’t work for me. I would be left with a shortfall in that first term.
Has anyone any suggestions on how I might resolve this? I’d like to help them out, but….
Laura