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View Full Version : T wishes to put in new kitchen



maplestead
10-02-2010, 16:25 PM
I have had the same T for 4 years. Rent is less than market value to allow for old boiler and kitchen. Everything works fine and built in cooker is approx 12 years old. As kitchen is old fashioned, T wishes to install new kitchen at his cost. I think this could lead to all sorts of problems. Its a 1920s house and although well decorated/double glazing, not much else has been done for last 30 years. What does anyone else think?

jeffrey
10-02-2010, 16:49 PM
1. Do you own the house freehold or leasehold?
2. Is it mortgaged by you or not?

ram
10-02-2010, 16:56 PM
.Rent is less for old boiler and kitchen. cooker 12 years old. T wishes to install new kitchen at his cost.

2 choices, 1st one could be difficult, so the only viable + SAFE option is:-

It is assumed you own the building / flat, so as to sublet.

As It's your property, and tenant is probably not on a full repair and maintainence contract, is to look after your property at your cost, have fitted new adequate kitchen and cooker, see to boiler ( which have to be serviced/ repaired / replaced as required, ) then see if you can get £ 5 / 10 per week extra rent ( which you may not be able to get )

That way, if you pay, there is no argument when / if tenant leaves. It's your kitchen fittings, not the tenants. Saves much hassle when tenant leaves.

But you must explain that the rent was lower because of the kitchen so no matter who sees to the kitchen, the rent will have to reflect the upgrade, ( the tenant is trying to avoid increased rent by asking to pay for kitchen )

Suggest you do the boiler at the same time so the tenant sees the benefit if you do kitchen, cooker and boiler.

Too complicated to start letting tenants pay for upgrages unless you get a cast iron new AST stating that any improvements are at the tenants none refundable cost.

R.a.M.

P.Pilcher
10-02-2010, 17:16 PM
Tenant has two choices: Firstly to accept your word that you won't be issuing a section 21 notice for several years and will then pay for the kitchen renewal on the strict understanding that it becomes your property and will remain should they or you decide to terminate their tenancy. Secondly the cost of the refurbishment/boiler replacement should be established. You take out a loan for the work and the tenant's rent is increased by the cost of the repayments over, say, five years provided this does not take the rent above a market level for appropriately fitted out property.

P.P.

johnjw
10-02-2010, 17:30 PM
I have had the same T for 4 years. Rent is less than market value to allow for old boiler and kitchen. Everything works fine and built in cooker is approx 12 years old. As kitchen is old fashioned, T wishes to install new kitchen at his cost. I think this could lead to all sorts of problems. Its a 1920s house and although well decorated/double glazing, not much else has been done for last 30 years. What does anyone else think?

If the kitchen is functional,you don't have to agree to do anything.
However, if you think a new kitchen is a good idea then it is far better (indeed I'd say essential) that you do the job yourself and increase the rent by an appropriate amount. You should discuss with your tenant the type of kitchen which would be acceptable to you both and then go on to discuss the cost and the required increase in rent.
Capital works of this kind are very much the responsibility of the LL. You should be able to get a tax allowance to the extent that the new kitchen is a renewal, though the allowance will not extend to any "improvement".
If the T does the work, think about the problems you may have in future if you wish to negotiate a rent increase or if you wish to end the tenancy. Also there is no guarantee that your tenant would instal a kitchen to a satisfactory standard; it might not even be safe.

jeffrey
10-02-2010, 17:34 PM
If the kitchen is functional,you don't have to agree to do anything.
However, if you think a new kitchen is a good idea then it is far better (indeed I'd say essential) that you do the job yourself and increase the rent by an appropriate amount. You should discuss with your tenant the type of kitchen which would be acceptable to you both and then go on to discuss the cost and the required increase in rent.
Capital works of this kind are very much the responsibility of the LL. You should be able to get a tax allowance to the extent that the new kitchen is a renewal, though the allowance will not extend to any "improvement".
If the T does the work, think about the problems you may have in future if you wish to negotiate a rent increase or if you wish to end the tenancy. Also there is no guarantee that your tenant would instal a kitchen to a satisfactory standard; it might not even be safe.
I agree. It's always better for a kitchen that adds to value of premises to be installed by L (but with T having reasonable input into layout design and colour). As I previously implied, however, L may need consent from lessor [if it's leasehold] and mortgagee [if it's mortgaged]; plus L must notify the company providing the property insurance too, so as to protect the insurance policy's validity.

westminster
10-02-2010, 17:49 PM
I agree with other comments. Don't let the tenant install a new kitchen himself. Either you do it and finance it by increasing the rent, or say no. If the kitchen is solidly-constructed, functional but just old-fashioned looking, it may well be more profitable to keep it and keep the rent low. Or alternatively, you might be able to give it a face-lift at relatively low cost - for example, a new worktop, replacing the knobs/handles, etc.

I would add that in an old house, especially, any new kitchen must be sympathetic to its surroundings and hardwearing/practical for the needs of all future tenants, not just this one. T will not necessarily have these considerations in mind.

Perplexed
10-02-2010, 18:50 PM
I am sorry to say that in my personal experience whenever a tenant carried out alterations, whether with or without permission, they always made a complete dog's meal of it, leaving the landlord to pick up the pieces. This invariably worked out more expensive than if the landlord had done the work himself.

westminster
10-02-2010, 19:09 PM
I am sorry to say that in my personal experience whenever a tenant carried out alterations, whether with or without permission, they always made a complete dog's meal of it, leaving the landlord to pick up the pieces. This invariably worked out more expensive than if the landlord had done the work himself.

I agree. I'd include 'improvements' as well as 'alterations' in this. "It's okay, I painted it/fixed the oven/installed blinds!" invariably means it's been ruined, or there are massive holes in the wall, or actually it's kaput because they used it as an impromptu BBQ, etc.

Preston
10-02-2010, 20:27 PM
I think I would be a bit more pragmatic than some of the other contributors. What evidence do you have that that the tenant will do a good or a bad job? My experience is that some tenants are excellent at carrying out such improvements. Others are rubbish. Err on the side of caution by all means, but assess the evidence before you make your decision; you might be passing up a very good opportunity if you dont.

jeffrey
10-02-2010, 20:30 PM
Either way, it should be installed by a professional craftsman and not a bodger. After T's left, L will be left with this kitchen!

Perplexed
11-02-2010, 08:42 AM
I've also heard of tenants putting in a new kitchen and then taking it with them at the end of the tenancy, leaving the property with no kitchen!

Telometer
11-02-2010, 10:22 AM
This sounds like a disaster waiting to happen!

maplestead
11-02-2010, 12:24 PM
1. Do you own the house freehold or leasehold?
2. Is it mortgaged by you or not?
Its freehold, mortgage free

Perplexed
11-02-2010, 12:29 PM
This sounds like a disaster waiting to happen!

Doesn't it just.

jeffrey
11-02-2010, 12:36 PM
Its freehold, mortgage free
Good; so that just leaves telling the Insurer (see post #6).